Income tax in China as foreigner

I have a few questions about income tax in China:


My situation:

- I am living in China more than 183 days a year

- Holding an F Visa

- I don't have income in China

- I am self-employed by my HKG based limited (and therefore only get income from there)


My questions:

- what is the tax-free amount you can have as oversea income in Mainland China?

- if the income is below that level (= no taxation), do I still have to file a nil tax report?

- how to prove your oversea income in China?


Thanks for any hints!

Income gained from self-employment is taxed at a flat 20% rate with no amount being considered tax-free.


At this point you do not need to prove any amounts you claim to have earned. However, expect the tax bureau to keep you in their sights. Also, they now share information with the labor bureau and the PSB. Those last 2 may be curious as to why you earn income in China but are on an "F" visa instead of a work visa.

Thanks for the info. I didn't know that's flat.


So I guess the tax applies to any salary as well as company profit/loss (for my part as shareholder).


> At this point you do not need to prove any amounts you claim to have earned.


I thought if I am more than 183 days in China, I generally have to claim any income, also overseas, not?


I don't actively earn income in China (and don't have any contracts or salary in China), only income in form of share profit from the HK company, or from salary of work done over in HKG (although work days may add up not more than 180 days in HKG, and therefore >183 days in Mainland China). I do consulting business on on-site project basis, so whenever I work, I travel to the HK based clients.

So basically I only live here basically because of my wife (Mainland Chinese) and better living conditions. So I think I shouldn't be needing a work visa, since I don't have an employer in Mainland. Maybe I should get a resident/family visa instead of F?

The only time you have the recently raised 5,400 RMB tax-free allowance is if you work for a Mainland company as your full-time employment. Work for other employers is taxed at a flat 20%. I am not sure, however, if they would tax your reported income as working part-time or else as some other category for which their is a rate schedule somewhat similar to that for salary -- but without the 5,400 tax-free allowance.


Even though you are required to pay income tax on your worldwide income, there is no system in place for you to show the tax bureau what that income is other than just your written claim as to the amount.


I would wonder, however, why you'd even go through the hassle. You do realize, don't you, that Hong Kong does not yet report information to the mainland tax authorities, right?


You're right in that from what you've described you probably don't need a "Z" visa. A family visa ("L" visa) doesn't give you any more rights than your "F" visa does other than the fact that with the family "L" you can remain continuously for a year without having to leave periodically. It might also be a little bit cheaper.

Ok, got it. Thanks for clarification!