When foreigners work or live in China ‌ if they fail to pay personal income tax as required, ‌ will face legal liability. ‌ According to the ‌ Law on the Administration of Tax Collection ‌ and other relevant laws and regulations, ‌ foreign nationals who fail to pay individual income tax may be investigated for legal liabilities such as fines. ‌ However, the personal income tax policy for foreigners is rather complicated. In order to protect taxpayers from legal tax payment and related rights and interests, and effectively prevent tax risks, intellectual talents have sorted out 20 risk points in the personal income tax policy and management of foreigners, so as to avoid tax risks.

一、General provisions on wage and salary income

1. Whether expatriates who are subject to tax obligations have filed a consolidated individual income tax return on their income from wages and salaries paid both within and outside the country;

2. For foreigners who have resided in China for at least five years and have resided in China for at least one year in the sixth year, whether the wages and salaries and other income derived from inside and outside China have been declared and paid individual income tax in China as required;

3. Whether the calculation of residence time and working time of foreigners in China is accurate, and whether the application of tax agreements (arrangements) and tax calculation formulas is correct;

4.If the overseas company provides technical support, operation and management support and other labor services for domestic enterprises to constitute a permanent establishment in China, whether the wages and salaries of its dispatched personnel have been declared and paid individual income tax in China according to regulations;

5. If a foreign employee holds or is employed in a company (including an affiliated company) and concurrently serves as a director or supervisor, whether the director's fee or supervisor's fee obtained has been combined with his or her personal salary income, he or she shall declare and pay personal income tax under the item "Salary income";

6. Whether the amount of income excluding tax (including the employer's full burden of tax, the fixed burden, the proportional burden, the tax burden exceeding the country of residence) has been converted into the amount of tax including income to declare tax;

二、Bonuses, subsidies, benefits in kind

7. Pay full tax on wage and salary income, and whether the monthly bonus, half-year bonus and task completion award obtained in the current month have been declared and paid individual income tax together with salary and salary income;

8. Whether the salary income tax obligation is less than one month or the month in which there is no tax obligation, whether the monthly bonus, half-year bonus and task completion award obtained have been declared and paid individual income tax separately for one month's salary income;

9. Whether the foreign staff's income from year-end one-time bonus, year-end double salary, year-end labor dividend, etc., has been correctly calculated and declared for tax payment in accordance with regulations;

10. Whether the housing subsidies, food subsidies, moving expenses, laundry expenses, business trip subsidies (except for reasonable standards), visiting expenses, children's education expenses, language training expenses, etc. granted by foreign workers in the form of cash have been declared and paid individual income tax together with wages and salaries; Other forms of subsidies and allowances obtained in various forms, such as communication expenses (except in the accounting and standard), transportation expenses, car subsidies, etc., have been declared and paid individual income tax together with wages and salaries;

11. Whether the benefits issued in kind have been converted into value and salary income combined to declare and pay individual income tax;

三、Insurance, equity incentive, retirement payment

12. Whether the insurance premiums paid by the company for various types of commercial insurance and social insurance purchased by the company for foreign employees and their families have been declared and paid individual income tax in accordance with the regulations and the wages and salaries of the month paid;

13. Participating in the enterprise annuity plan, whether the income from the enterprise annuity payment has been correctly calculated and declared and taxed according to the regulations;

14. Whether the foreign staff's income from stock options, stock appreciation rights, restricted stock, stock and other incentives has been correctly calculated and declared for tax payment in accordance with regulations;

15. Whether the foreign staff's income such as retirement payment, compensation for rescission of labor contract and relocation payment has been correctly calculated and declared according to regulations;

四、other

16. Whether the dues of foreign personnel who only serve as directors and supervisors of the company (including affiliated companies) have been declared and paid individual income tax according to the item of "Labor remuneration income";

17. Whether the enterprise has withheld individual income tax on the foreign personnel who perform the contract and provide independent personal services according to the "income from labor service remuneration" item;

18. Whether the dividends and bonus income paid by the non-foreign-invested enterprises to the foreign personnel participating in the shares have been fully withheld from the individual income tax;

19. Whether the retained earnings and capital reserves of non-foreign-invested enterprises have been converted into the share capital of foreign personnel has been declared and paid individual income tax as required;

20. Whether the foreign individual shareholders have reported and paid personal income tax on the transfer of domestic enterprise equity as required.

五、Employment requirements for foreigners in China

Foreigners employed in China must meet the following conditions:

(1) at least 18 years old and in good health;

(2) having the necessary professional skills and corresponding work experience for his work;

(3) having no criminal record;

(4) There is a definite employer;

(5) Hold a valid passport or other international travel document that can replace a passport.

According to Article 41 of the Exit and Entry Administration Law of the People's Republic of China, foreigners who work in China shall obtain work permits and work-type residence permits in accordance with relevant provisions.

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