Comments for View to China

Comment on China vs. Hong Kong: personal income tax by John Hughes

John Hughes — Tue, 03 Aug 2010 15:10:49 +0000

I have lived in China 5 years as of Nov 10 this year. I will spend 30 consecutive days in Hong Kong from 18 Sep till 19 Oct.

Does this qualify as leaving for tax purposes (exact 30 days, and does HK count)?

Comment on China vs. Hong Kong: personal income tax by yiwu

yiwu — Mon, 02 Aug 2010 14:59:53 +0000

anyway, Chinese people will not be happy to see u compare HK and HK together in the same level

Comment on Is it just me? Or is everyone going China crazy? by die casting aluminum cookware

die casting aluminum cookware — Mon, 02 Aug 2010 14:58:01 +0000

i want to say, the foreigners’ position in China is toooo high

Comment on China vs. Hong Kong: personal income tax by Matthew

Matthew — Thu, 29 Jul 2010 13:18:23 +0000

Richard,

Worldwide taxation doesnt, in respect of foreign expatriates, come in until you have lived in China for over 5 consecutive year. 1 year is stated in the IIT law but this is extended to 5 years in the IIT regulations.

Any year in which you have left China for more 30 days doesnt count as year in which you have lived in China.

I am not aware of any foreign expat that is being tax on a worldwide basis and I would be surprised if there is any (apart from maybe english teachers).

Cheers,

Matthew

Comment on China vs. Hong Kong: personal income tax by Richard

Richard — Tue, 13 Jul 2010 15:08:57 +0000

Somewhat contrary to what I read in your article above, I understand that an individual’s worldwide income and gains become liable to tax in China if that individual is classed as being either domiciled or permanently resident in China for tax purposes. The definition of Permanent Residence is slightly vague but does seem to class an individual as being resident if they spend more than 1 year in the country. However there seems to be the possibility that this can be avoided by being out of the country for more than 90 days in each tax year.

It has been recommended to me that if I want to live in China for more then 183 days per year then an Representative Office (RO) would be the best option but, if I am not careful, I could potentially expose my worldwide income and gains to Chinese tax. However it also seems that one solution might be for me to form an RO and thereby obtain a resident visa which would enable me to reside in China for extended stays. Provided I was out of China for at least 91 days each tax year, I would seemingly not be considered either domiciled or resident for tax purposes and therefore would only be taxed on income derived within China, which could be quite low (despite other income earned outside China, which would not be taken into account or liable to Chinese tax)

1. Am I right in thinking that having a resident’s visa does not automatically class me as either domiciled or resident for tax purposes?

2. Am I right in thinking that if I am out of China for more than a cumulative total of 90 days in each tax year then I would be considered non-resident for tax purposes and therefore only taxed on my income derived actually within China and not on my worldwide income?

3. Does this 90 days need to be made up of trips exceeding 30 days each for those trips outside the country to qualify towards the 90 days cumulative total?

Comment on China’s indigenous innovation policies: no easy solutions by David G

David G — Tue, 22 Jun 2010 07:55:53 +0000

It will be interesting to see how China ultimately squares the circle between its eventual WTO obligations and its indigenous innovation policies. It will probably come down in favor of the latter, but it was perhaps a mistake to let China join the WTO without making them sign this essential part of membership. I’m part of an online community called talkstandards.com and we’re holding an online debate on this topic on Thursday June 24th between 15:00 – 17:00 GMT at http://www.talkstandards.com/standards-policy-in-china/ where we will discuss the future direction taken by the country’s indigenous innovation policy and how an adequate standardization policy, particularly in the field of ICT, can provide the foundations for a more open and innovative economy in China. All are welcome to attend.

Comment on Is it just me? Or is everyone going China crazy? by cooker

cooker — Sun, 13 Jun 2010 19:36:53 +0000

of coz not crazy, china is so strange

Comment on Chinese VAT rebates: micro and macro issues by A link from the “View to China” blog to our article on the Chinese VAT : PassageMaker China

Mon, 07 Jun 2010 00:19:16 +0000

[...] Johns-Putra, owner of Johns-Putra Ltd. and author of the “View to China” blog linked to one of our articles on the Chinese Value Added Tax (VAT) system, “What [...]

Comment on About by A link from the “View to China” blog to our article on the Chinese VAT : PassageMaker China

Sat, 05 Jun 2010 21:01:55 +0000

[...] Geraldine Johns-Putra, owner of Johns-Putra Ltd. and author of the “View to China” blog linked to one of our articles on the Chinese Value Added Tax (VAT) system, “What is VAT and why should I worry about it?“. [...]

Comment on China vs. Hong Kong: personal income tax by Geraldine Johns-Putra

Geraldine Johns-Putra — Wed, 02 Jun 2010 22:43:41 +0000

Ah…Dan has a *much* larger client base than I have. So my problem is, as you have touched upon, by going into detail I would risk breaching confidentiality obligations.
Anyway, by posting this, I intended to raise some general pointers that might help individuals not looking for specific advice — anyone needing very tailored advice ought to seek the help of a China tax professional.