State Administration of Taxation, Several Issues Concerning Implementation of Tax Agreements and Individual Income Tax Laws on Individuals with no Domiciles in China Circular

Issued: July 23 2004
Effective: July 1 2004
Applicability: In case of a discrepancy between previous provisions and this Circular, this Circular shall prevail (Item Five).

Main contents: Item One concerns how to calculate the number of days of residence in China when determining the obligation of paying of tax. Item Two concerns how to calculate an individual's actual working period in China on the days of arrival and departure. Item Three concerns the formulae applicable to the calculation of the amount of tax payable by individuals with no domiciles in China who have different tax payment obligations. Item Four concerns the applicability of clauses in agreements or arrangements between China and another country or region to senior management personnel of an enterprise.
Related legislation:PRC Individual Income Tax Law (Second Revision), Aug 30 1999, CLP 1999 No.8 p12; PRC Individual Income Tax Law Implementing Regulations, Jan 28 1994, CLP 1994 No.3 p9; State Administration of Taxation, Several Specific Questions Concerning the Calculation and Payment of Individual Income Tax by Individuals with No Domiciles in China Circular, Mar 23 1995, CLP 1995 No.7 p9 and State Administration of Taxation, Questions Concerning the Obligation of Tax Payment on Income from Salaries and Wages Obtained by Individuals with no Domiciles in China Circular, Jun 30 1994