Living
Taxation
If you live and work in Beijing for less than five years, you’ll be liable for individual income tax (IIT) on your China earnings. Stay for more than five consecutive years and you’ll become domiciled in China, meaning your worldwide earnings will be taxed in China.
China’s income tax is progressive, with rates ranging from 5% to 45% in nine bands, depending on how much you earn. It’s also worth keeping receipts (fapiao) for things like meals and laundry services, as you can offset these against your taxable income, as well as ‘reasonable’ relocation costs, business trip expenses and language training. Your employer should be able to handle the administrative side of paying your taxes, by withholding them from your monthly salary. Be sure also to check your tax position in your home country so that you fulfil all the requirements there. VAT in China is 17% for most products.
China’s income tax is progressive, with rates ranging from 5% to 45% in nine bands, depending on how much you earn. It’s also worth keeping receipts (fapiao) for things like meals and laundry services, as you can offset these against your taxable income, as well as ‘reasonable’ relocation costs, business trip expenses and language training. Your employer should be able to handle the administrative side of paying your taxes, by withholding them from your monthly salary. Be sure also to check your tax position in your home country so that you fulfil all the requirements there. VAT in China is 17% for most products.
