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1. IIT ISSUES FOR EXPARTIRATES WORKING IN PRC
1.1 THE CONCEPT OF "HABITUALLY RESIDENCE" IN PRC
While person (expatriate) has his own family or based on the career factors, has to habitually or frequently resided in PRC, or recorded as the tenant in any residential record, is regarded as having the place of residence inside PRC.
In other words, all the permanent citizens of PRC are considered into those who have a place of residence inside PRC, they have to bear the IIT liabilities subject to the income earned from the global scale.
For permanent citizen of PRC who bear the overseas passport or become the citizen of overseas countries, in considering the individual income tax liabilities, they have been considered the same as the overseas expatriates.
DEFINITION OF A FULL-YEAR RESIDENCE IN PRC
Within a calendar year, the expatriate residing in PRC greater than one year, is regarded as residing for one whole year in PRC unless:
- The once-off departure from PRC has a duration longer than consecutive 30 days; or
- The accumulated departure days amounting to 90 or more days.
For those not habitually resided in PRC, but resided longer than 1 year, his / her income should be subject to IIT of PRC.
FOR EXPATRIATES RESIDING IN PRC LONGER THAN 5-YEAR
Have to reside in PRC longer than 5 years or above, IIT liabilities are calculated based on their global income as the permanent citizen of a PRC resident. As the expatriated residing in PRC persistently longer than 5 years, Commencing from the 6th year, his annual GLOBAL income is taken into PRC's IIT consideration.
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