1.Legal Basis

 China has income tax treaties with many foreign countries or regions as to avoid double taxation and to prevent tax evasion. Foreign teachers working at universities, colleges or other accredited educational institutions in China may be exempted from Individual Income Tax (IIT) for a period no exceeding the first two or three years of arrival in China for teaching or research purposes of employment in the aggregate in respect of remuneration for such teaching activities.  

2.Contracting Countries

 The contracting countries are: Japan, Germany, New Zealand, Thailand, Australia, Malta, Papua New Guinea, Republic of Lithuania, Serbia, Latvia, Yugoslavia, Estonia, Venezuela, USA, France, Belgium, Malaysia, Norway, Sweden, Italia, Poland, Bulgaria, Pakistan, Kuwait, Cyprus, Spain, Romania, Austria, Mongolia, Hungary, Korea, India, Luxembourg, UAE, Mauritius, The Republic of Belarus, Croatia, Slovenia, Israel, Vietnam, Ukraine, Armenia,  Jamaica, Iceland, Bengal, Sultan, Macedonia, Egypt, Portugal, Laos, Seychelles, The Philippines, Ireland, South Africa, Barbados,  Moldova, Kazakhstan, Oman, Tunisia,  Cuba, Bahrain, Kyrgyzstan, Morocco, Sri Lanka, Trinidad and Tobago, Albania, Georgia, Mexico, Macao, Saudi Arabia, Tajikistan, Turkmenistan, Slovakia,  Brazil,  Indonesia, Turkey, Iran, Ethiopia, Syria, Qatar, Nepal, Nigeria, Greece, Brunei, Zimbabwe and others sum up to approximately 90 countries or regions.

3.Specifications

3.1 If you are a resident of one of the contracted parties as listed above, please visit the Payroll Accountant of the Finance office (FO) for application documents for IIT Exemption.  

3.2 According to the different terms of treaties with different countries, the PRC regulations divide the IIT Exemption in two categories:

3.2.1 The first category of treaties stipulates the exemption period: An IIT exemption period of three (or two) years shall be granted to individuals working as teachers or researchers in accredited educational institutions that are eligible for tax exemption;  and the individuals must pay for IIT after the exemption period.

3.2.2 The second category of treaties stipulates the exemption criteria: Individuals working as teachers or researchers in accredited educational institutions that are eligible for tax exemption shall be exempted from IIT if working in China not exceeding three (or two) years; if working in China for more than three (or two) years, the individuals shall no longer entitle for the IIT exemption and must refund any previous tax allowance granted.

4.Application Documents

4.1 information Reporting Form of Tax Residence Status of Non-resident Taxpayer (For Individuals)

4.2 Situation Report Form of Non-Residents for Claiming for Treatment under Double Taxation Agreement.

4.3 Applicant’s Certificate of Resident Status as a taxpayer for the last taxation year (to be filled out by the competent tax authority or its authorized representative of the contracting party of which the applicant is a resident, or a separate certificate issued by such authority or representative could be attached; country dependent).

4.4 Employment contract (to be translated into Chinese if in other languages)

4.5 Passport copy (of both the home page and attached page with the first entry stamp/record)

4.6 Copy of Foreign Expert Certificate

4.7 Individual Income Tax (IIT) Exemption Confirmation Form

4.8 Declaration of providing first-time lecture/research service in China (in both Chinese and English)

5.Kindly Reminders

5.1 Foreigners fail to submit application documents of the IIT exemption in time shall be deemed to be ineligible for the IIT exemption or to voluntarily give up the eligibility, no IIT exemption shall be granted.

5.2 Such IIT exemption could be implemented only after the completion of the filing and approving processes by the local tax authorities, which may take up to 20 business days. In order for eligible teachers to enjoy tax benefits on a timely manner, please have all documents ready beforehand.

5.3 For further inquiry, please contact Zhuhai Municipal Local Taxation Bureau at 12366-2.The detailed rules are subject to the law. The final result shall be subject to the approval of the tax bureau.