Update on Individual Income Tax implications for foreigners

Where foreign individual taxpayers who receive fringe benefits such as housing or meal allowances etc should provide the relevant supporting documents to substantiate the claims when reporting their income. The respective tax bureau could request the taxpayers to submit further documentary evidence within specific period in case that the submitted documents were not sufficient to determine the taxability of fringe benefits. The respective tax bureau has the right to make any taxation adjustment for any individual failed to provide sufficient supporting documents.

Where a foreign individual who is not resident in China, received non-PRC sourced bonus during the period of his/her stay in China, should provide sufficient information and documents in respect of the bonus distribution scheme in order to demonstrate that the aforesaid bonus was related to his/her past performances outside China. Otherwise, the respective tax bureau has the right to make any appropriate taxation adjustment on the reported amount.

外籍納稅人臨時來華在中國內地工作或不同地方提供勞務的，按納稅人所在實際工作地申報納稅，取消外籍納稅人必須固定在一地申報繳納個人所得稅的規定。

外籍個人取得個人住房、伙食等補貼收入，在繳納個人所得稅時，應按規定提供有效憑證及證明資料。主管稅務機關應就納稅人申報的有關補貼收入逐項審核。對其中有關憑證及證明資料，不能證明其免稅補貼的合理性的，主管稅務機關應要求納稅人在限定的時間內，重新提供證明材料。凡未能提供有效憑證及證明資料的補貼收入，主管稅務機關有權給予納稅調整。

在中國境內無住所的個人在中國期間取得來華之前的獎金，在申報納稅時，應就此項獎金做出說明，並附送雇傭單位有關獎勵制度，證明其上述獎金有屬於來中國之前在中國境外工作月份獎金的，可以扣除並不予徵稅。否則，稅務機關有權進行納稅調整。