Notice! Have You Received This Message from Bank Recently?
The definition for this term may vary from country to country, but mostly, an individual can qualify to be treated as a Tax Resident either under a qualitative or quantitative standard. China is not an exception.
According to the Regulation on the Implementation of the Individual Income Tax Law of the People’s Republic of China and the Levy of Individual Income Tax, A Tax Resident in China shall pay individual income tax on all their income, no matter their income derived within the territory of China or outside China.
Well, China has entered the (CRS) Common Reporting Standard, a system was intended to transfer all relevant information automatically and systematically, this message is intended to inform all the accounts holders report their tax information spontaneously to the banks.
Easy! If you are a Tax Resident in China(30 days, 90days rule), Report the individual income no matter derived within or outside China to China Tax Government. If you are a Non-Tax Resident, forget it, well, it is according to the law.
Ell, many of you may have this question, what if I tell the truth that I am a Tax Resident in China, what time and how would China Tax Bureau levy the tax from me.
To be honest, it is an obligation to pay tax voluntarily everywhere in this world, it is a matter of time to get all things to the right direction. So, let’s get started before it’s too late.