14 March 2019
The Ministry of Finance and State Administration of Taxation released a Public Notice, clarifying the criteria for determining days of residence of individuals without domicile within the Mainland China. If an individual without domicile stays in the Mainland China for (1) 183 days or more in a year and (2) in the preceding six consecutive years the individual stays 183 days in each of the year and does not leave the Mainland China for more than 30 days in any occasion, the individual's overseas-sourced income and domestic-sourced income will be subject to Individual Income Tax (“IIT”).
If an individual without domicile stays in the Mainland China for (1) 183 days or more in a year and (2) in the preceding six consecutive years the individual stays less than 183 days any one year or leaves the Mainland China for more than 30 days in one occasion, the individual's overseas-sourced income will be exempted from IIT.
In counting the days that an individual stays in the Mainland China, any day with less than 24 hours in the Mainland China will not be counted as a day.
The Public Notice took effect from 1 January 2019.