Individual Income Tax Declaration for Foreigners
According to Individual Income Tax Law of the People's Republic of China and its implementation regulations and the provisions of the individual income tax return (Trial), foreigners who are employed, provide labor service in Shanghai or have other sources of income in China territory, shall perform individual income tax declaration and tax payment in accordance with the law. For those annual incomes of more than RMB 120000, annual tax declarations should also be declared.
Correct Judgment of the Declaration Obligations
Following foreigners whose own more than RMB 120000, should declare to tax bureau by themselves:
1. Foreigners who has residence place in the territory of China with annual income more than RMB 120000;
2. Foreigners who do not have residence place in China, but has ever lived in the territory for one year and have annual income more than RMB 120000.
"Live in the territory for one year" means that foreigner live in the China territory for 365 days within a tax year. In the calculation of number of days, an exit that less than 30 days or multi-exit less than 90 day will not be deducted from the total number of days in a tax year.Correct Calculation of Annual Income:
The annual income of more than RMB 120000 refers to the total amount of taxable income of the taxpayer in the year that reaches RMB 120000.
The Same Declaration Period for Domestic Taxpayer and Foreign Taxpayer
As with domestic taxpayer, the foreign taxpayer who has annual income of more than RMB 120000, should declare to the competent tax authorities within 3 months after the end of the tax year. Specific declaration between February to March of each year.
Three Ways of Declaration
For foreign taxpayer who has annual income of more than RMB 120000, can use online declaration, mail declaration, the tax service hall declaration, or entrust the agency with tax qualification or any other person for tax declaration.
Overdue Declaration Will Be Punished.
According to the relevant provisions of the tax collection and administration law, for taxpayer whose annual income of more than RMB 120000, if he has not complete tax declaration within the period, tax authorities will order him to correct, can be fined RMB 2000; If the circumstances are serious, the tax payer can placed a fine between RMB 2000 to RMB 10000.
For taxpayers do not declare tax and result in no tax or less tax paid, the tax authorities shall pursue the payment of the unpaid or underpaid taxes, overdue payment and impose a penalty amount more than 50% or less than 5 times of unpaid or underpaid taxes.
StartChinaBusiness was legally established in PuDong New Area with Accounting and Tax Service Certificate. Choose StartChinaBusiness, means you choose professional trusted business partner who will provide one stop service on your development way.