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New Chinese Tax Rule To Take Aim At Multinationals Profit Shifting In china’s tax system, the six year rule is a critical component that influences the tax liabilities of individuals working within the country. it determines tax residency and the associated taxation of an individual’s global income. China’s six year tax rule is a pivotal consideration for expats aiming to stay compliant while working long term in the country. with tighter regulations and advanced tracking systems introduced in 2025, proactive planning is more essential than ever. Foreign nationals living in china long term face a significant tax milestone in 2025, as many will hit the six year residency threshold that triggers taxation on worldwide income. (yicai) nov. 18 china’s new tax reporting rules for internet platforms will end e commerce business models that hide or reclassify income to evade taxes and usher in a compliance driven reshaping of the industry, experts said.
2021 China Tax Update Fung Yu Co Cpa Limited Foreign nationals living in china long term face a significant tax milestone in 2025, as many will hit the six year residency threshold that triggers taxation on worldwide income. (yicai) nov. 18 china’s new tax reporting rules for internet platforms will end e commerce business models that hide or reclassify income to evade taxes and usher in a compliance driven reshaping of the industry, experts said. In 2019, china introduced a significant change to its individual income tax (iit) system by implementing the “six year rule” for foreigners. this rule, which starts applying in 2024, determines how foreign residents are taxed on their overseas income. This booklet has been prepared to provide the reader with an overview of taxes levied in the people’s republic of china. the material contained in this publication was assembled on 31 may 2025 and, unless otherwise indicated, is based on information available at that time. China offers multiple tax incentives to attract foreign investment, including preferential cit rates, vat exemptions or refunds, r&d super deductions, and reduced withholding tax in industrial zones. In this tax alert, we set out our understanding of the provisions contained in the recently issued implementation regulations of china’s value added tax (vat) law, followed by a summary of the key policy changes and a discussion of how taxpayers should respond to these potential changes.
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