At present, more and more foreigners are working in China, and many want to apply for permanent residence in China in the future. However, there are strict requirements on the salary and tax payment of applicants for permanent residence, and the individual income tax policy of foreigners is relatively complicated. So how to effectively prevent tax risks, so as not to affect the application for permanent residence in China? Xino will share with you some risk points of foreign personal income tax policy and management. Taxpayers working in China can check it to avoid tax risks.
No.1
General Provisions on Salary income
1.Whether the income from wages and salaries paid at home and abroad has been declared and paid individual income tax by the foreign personnel who are liable for tax payment according to regulations;
2.For foreign nationals 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 their income from wages and salaries and other income derived from inside or outside China have been declared and paid individual income tax in China according to regulations;
3.Whether the calculation of residence time and working time of foreign nationals in China is accurate, and whether the tax agreement (arrangement) and tax calculation formula are correctly applied;
4.If an overseas company provides technical support, operation and management support and other services to a domestic enterprise as a permanent institution in China, whether the wages and salaries of its dispatched personnel have been declared and paid individual income tax in China in accordance with 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, and shall be declared and paid individual income tax under the item “Salary income”;
6.Whether the amount of income excluding tax (including the total tax borne by the employer, the fixed tax burden, the proportional burden, the tax burden exceeding the original country of residence) has been converted into the amount of income including tax to declare and pay tax;
No.2
Bonuses, subsidies
1.Whether the monthly bonus, half-year bonus and task completion award obtained in the current month have been declared and paid individual income tax in combination with the income from wages and salaries;
2.Whether the monthly bonus, half-year bonus and task completion award have been separately declared and paid individual income tax for monthly wage and salary income in the month less than one month or in the month without tax obligation;
3.Whether the foreign staff’s income from year-end one-time bonus, year-end double salary and year-end labor dividend has been correctly calculated, declared and paid tax according to regulations;
No.3
Other
1.Whether the foreign staff members who only serve as directors and supervisors of the company (including affiliated companies) have declared and paid individual income tax according to the “income from Labor remuneration” item;
2.Whether the enterprise has withheld individual income tax for the foreign personnel who perform the contract and provide independent personal services according to the “income from labor service remuneration” item;
3.Whether individual income tax has been fully withheld for dividends and bonus income paid by non-foreign-invested enterprises to foreign personnel participating in shares;
4.Whether the retained earnings and capital reserves of non-foreign-invested enterprises have been transferred to the capital stock of foreign personnel has been declared and paid individual income tax in accordance with the provisions;
5.Whether the foreign individual shareholders have declared and paid individual income tax in accordance with the regulations when transferring the equity of domestic enterprises.
