Living in China: 183 days, annual scale from 3 to 45 % and the six-year rule

In China, an individual is considered a tax resident if they have a domicile in China or if they reside there for 183 days or more during a tax year. Residents are taxed on their income from both Chinese and foreign sources. Total employment income is taxed on an annual scale ranging from 3 to 45 %. Interest, dividends, rents, and proceeds from asset sales are taxed at a flat rate of 20 %. A special provision exists for foreigners without a domicile who remain in China for fewer than six consecutive years. This page does not cover social security, wealth, or visas.

Chinese resident: a home or 183 days

Article 1 of the Law on Personal Income Tax, in its English translation published by the Guangdong Provincial Tax Administration, addresses two cases. A person is considered a resident if they have a domicile in China. A person is also considered a resident if they have stayed in China for a total of 183 days or more during a tax year.

The State Tax Administration's "Tax System" page (published on December 24, 2025) provides the same definition. It defines a non-resident as someone who does not have a domicile and does not live in China, or who spends fewer than 183 cumulative days there in a year. The law does not define the concept of domicile: its relevance to your situation should be confirmed with a professional based in China.

What is imposed according to the status

A non-resident whose stay does not exceed 90 days per year is taxed only on wages related to work performed in China and paid or supported by an employer located in China. Both conditions are cumulative, as stated in the announcement; your situation should be verified before departure. This rule is outlined in Announcement No. 35 of 2019 from the Ministry of Finance and State Revenue Administration, dated March 14, 2019, and applicable since January 1, 2019.

Homeless foreigner: the six-year rule

Residents without a fixed address in China, who are present for 183 days or more in a given year, benefit from a special rule as long as they remain for fewer than six consecutive years. Announcement No. 35 then provides for taxation on all salaries received, except those related to work performed outside of China and paid by an entity or individual located outside of China. This measure is subject to fulfilling the conditions of Article 4 of the implementing regulations.

The Shanghai municipal government website describes the same measure in broader terms: it refers to the exemption of foreign-source income paid by an entity or individual abroad, provided that the number of consecutive years with 183 days is less than six, and that a declaration is made to the relevant tax authority. The exact distinction between "salary" and "foreign-source income" is not clearly defined here; this is verified before departure.

The annual scale of total income

Total income includes salaries, personal service fees, copyright royalties, and other royalties. For a resident, these incomes are added together over the year. Taxable income is the balance after a deduction of 60,000 yuan per year (Article 6 of the law), after special and additional deductions stipulated by law, including childcare, childcare for children under three, continuing education, medical expenses, housing, and elderly care.

Annual tax rates from the Shanghai Municipal Government website (published on 20/01/2026, updated on 29/07/2026). This page is the only one of the cited sources to provide intermediate tax brackets; the translation of the law and the "Tax System" page confirm the extreme rates of 3 % and 45 %.

Taxpayers required to make annual regularization must file it between March 1st and June 30th of the following year, according to the same page.

Dividends, interest, rents, sales: 20 %

The law distinguishes nine categories of income. For interest, dividends or bonuses, asset rentals, asset sales, and occasional income, it provides a fixed rate of 20%. Operating income follows a progressive scale from 5% to 35%. Details of the operating income brackets are not included here.

An annual salary of 900,000 yuan: a numerical example (fictitious profile)

Situation. Wei, a fictitious profile, is a Chinese tax resident. His annual salary is 900,000 yuan (assumed amount), with no other total income.

Issue. He wants to estimate the annual tax using the scale above.

Strategy. He removes the deduction of 60,000 yuan, leaving 840,000 yuan taxable (assumption: no other deductions), then applies each bracket.

Result. The tax is 1,080 yuan on the first bracket, 10,800 yuan on the second, 31,200 yuan on the third, 30,000 yuan on the fourth, 72,000 yuan on the fifth, and 63,000 yuan on the sixth. The total is 208,080 yuan, or 23.1 % of gross salary. If he also receives 100,000 yuan in dividends, the tax on these dividends is 20,000 yuan at a fixed rate of 20 %. This calculation uses the brackets from the Shanghai page and ignores special and additional deductions, as well as social security contributions, which are not considered here.

What this page does not cover

This guide does not cover social security contributions, capital gains tax on real estate, property tax, inheritance tax, local savings, or residence permits: these matters should be verified with the Chinese authorities. The cited sources only cover residency, tax rates, and the announcements mentioned. Local tax matters should be verified with a professional based in China. French tax matters, including the departure declaration, accounts to be declared, and exit tax, are addressed in our pages on tax residency and on our page on the France-China tax treaty.

What changes depending on your situation

• Your home: does it exist in China or not?.
• The number of days spent in China per tax year.
• The number of consecutive years with 183 days or more.
• The actual place of work and the entity that pays you.
• The nature of your income: employment, dividends, rents, sales.

The rule depends on your situation. No results are guaranteed.