“ How can I calculate personal income tax for a foreign national employee in the company”
“公司有位外国国籍员工，我该怎样为他计算个税？”
“Can foreign employees also enjoy the special additional deduction policy”
“外籍员工是否也可以享受专项附加扣除政策？”
“Do foreign nationals working in China have any special points to pay attention to when paying personal income tax”
“在华工作的外籍人员在缴纳个税时有什么需要注意的特殊点吗？”
Recently, SFBC has found that there have been many doubts about the tax payment of foreign personnel. Today, we will conduct a centralized review of the tax payment issues for foreign personnel working in China according to relevant regulations.
最近，SFBC发现大家对外籍人员的缴税问题产生了不少疑问。今天我们就根据相关规定，对外籍人员在华工作的缴税问题做一个集中的梳理。
I.Determination of taxpayers
一、纳税人的确定
The first article of the new tax law stipulates: Individuals who have a residence in China or have no residence but have resided in China for a cumulative period of 183 days in a tax year are resident individuals. Income obtained by resident individuals from both within and outside China shall be subject to personal income tax in accordance with the provisions of this Law. Individuals who have no residence but do not reside in China or have no residence but have resided in China for a cumulative period of 183 days in a tax year are non resident individuals. Non resident individuals are referred to as non resident individuals Income obtained within the territory of China shall be subject to personal income tax in accordance with the provisions of this Law.
新个税法第一条规定：“在中国境内有住所，或者无住所而一个纳税年度内在中国境内居住累计满183天的个人，为居民个人。居民个人从中国境内和境外取得的所得，依照本法规定缴纳个人所得税。在中国境内无住所又不居住，或者无住所而一个纳税年度内在中国境内居住累计不满183天的个人，为非居民个人。非居民个人从中国境内取得的所得，依照本法规定缴纳个人所得税。”The new tax law has made a clear distinction between resident individuals and non resident individuals. The concept that needs to be noted here is:
新个税法对居民个人与非居民个人做了明确的区分。这里需要注意的概念是：
1. Residence
1.“住所”
Having domicile in China refers to habitual residence in China due to registered residence, family and economic interests.
在中国境内有住所，是指因户籍、家庭、经济利益关系而在中国境内习惯性居住。
2. Tax year2.“纳税年度”
From January 1 to December 31 of the Gregorian calendar.
自公历一月一日起至十二月三十一日止。
3. "Income obtained from within and outside China" refers to income sourced from within China and income sourced from outside China, respectively.
3.“从中国境内和境外取得的所得”分别是指来源于中国境内的所得和来源于中国境外的所得。
Therefore, before calculating personal income tax for foreign individuals, it is necessary to first distinguish whether foreign individuals meet the conditions of resident or non resident individuals, and then calculate personal income tax in accordance with relevant regulations.
因此，在为外籍人员计算个税前，首先需要区分清楚外籍个人是符合居民个人还是非居民个人的条件，再按照相关规定计算个税。
II.Do foreign personnel enjoy special additional deductions
二、外籍人员是否享受专项附加扣除
Article 7 of the Notice on the Connection of Preferential Policies after the Amendment of the Personal Income Tax Law stipulates that for foreign individuals who meet the personal conditions of residents from January 1, 2019 to December 31, 2021, they can choose to enjoy special additional deductions for personal income tax, or they can choose to enjoy housing subsidies, language training fees according to the original tax preferential policies Children's education expenses and other subsidies are tax-free preferential policies, but they cannot be enjoyed simultaneously. Once selected, it cannot be changed within a tax year. Starting from January 1, 2022, foreign individuals will no longer enjoy tax exemption policies for housing subsidies, language training fees, and child education subsidies, and should enjoy special additional deductions according to regulations.《关于个人所得税法修改后有关优惠政策衔接问题的通知》第七条关于外籍个人有关津补贴的政策规定：2019年1月1日至2021年12月31日期间，外籍个人符合居民个人条件的，可以选择享受个人所得税专项附加扣除，也可以选择按照原有税收优惠政策规定，享受住房补贴、语言训练费、子女教育费等津补贴免税优惠政策，但不得同时享受。一经选择，在一个纳税年度内不得变更。自2022年1月1日起，外籍个人不再享受住房补贴、语言训练费、子女教育费津补贴免税优惠政策，应按规定享受专项附加扣除。That is to say, foreign personnel who meet the personal conditions of residents can choose between the existing tax preferential policies and the existing special additional deductions within the next three years, and after three years, they will enjoy the unified special additional deductions. In this way, it not only leaves sufficient adaptation period for foreign individuals to adapt to the new policy of personal income tax, but also to some extent ensures tax fairness between foreign individuals and domestic residents.
也就是说，外籍人员符合居民个人条件的，在未来三年内可以在原有税收优惠政策与现有专项附加扣除之间做出选择，三年后则统一享受专项附加扣除。这样一来，既为外籍个人适应个税新政留下了足够的适应期，也在一定程度上保证了外籍人员与本国居民的税收公平。
III.Tax exemption arrangements for taxpayers based on their length of residence
三、针对纳税人居留时间长短做出的免税安排
Article 3 and Article 4 of the Implementation Regulations of the Personal Income Tax Law of the People's Republic of China provide tax exemption provisions for taxpayers' length of residence:
《中华人民共和国个人所得税法实施条例》第三条和第四条针对纳税人居留时间长短做出了免税规定：
1. Individuals who do not have a residence in China and have resided in China for a cumulative period of 183 days for less than six consecutive years shall be exempt from personal income tax on their income from sources outside China and paid by overseas units or individuals after filing with the competent tax authority.
1.在中国境内无住所的个人，在中国境内居住累计满183天的年度连续不满六年的，经向主管税务机关备案，其来源于中国境外且由境外单位或者个人支付的所得，免予缴纳个人所得税。
The key to this regulation is to distinguish between "cumulative" and "continuous". If you have lived for a total of 183 days, it can be renewed if interrupted within the same year. If there are less than 183 days in a certain year within 6 years, the interruption cannot be continued and the period needs to be recalculated in the following year of interruption.
这一规定的关键在于区分“累计”和“连续”。累计住满183天，在同一年度内中断可续。如果6年间出现某一年度不满183天，则中断不可续，需要在中断次年重新计算年限。
For example, if a foreigner resided in China for a total of 183 days in 2019 and 2020, but only resided in China for one month in 2021, the consecutive years need to be recalculated from 2022.
比如，外籍人士在2019年、2020年在中国境内居住累计均满183天，但2021年仅在中国境内居住一个月，那么连续年限需要从2022年重新计算。
Also, pay attention to the restrictions on income: it comes from sources outside of China and is paid by overseas units or individuals.
另外注意收入所得的限制条件：来源于中国境外且由境外单位或者个人支付。
2.If a person has left the country for more than 30 days in any year during which they have resided in China for a total of 183 days, the consecutive years for the year in which they have resided in China for a total of 183 days shall be recalculated
2.“在中国境内居住累计满183天的任一年度中有一次离境超过30天的，其在中国境内居住累计满183天的年度的连续年限重新起算。”
The key to this regulation lies in the relationship between "any year" and "once".
这一规定的关键在于“任一年度”和“一次”的关系。
For example, if a foreigner has resided in China for a total of 183 days for a total of four years, and has left the country for more than 30 days in the fifth year, the consecutive years need to be recalculated.
比如，外籍人士在中国境内居住累计满183天的年份共有四年，第五年离境超过30天，那么连续年限需要重新计算。
3. Individuals who do not have a residence in China and reside in China for a cumulative period of no more than 90 days in a tax year are exempt from personal income tax for the portion of their income originating in China that is paid by an overseas employer and not borne by the employer's institutions or premises in China.
3.在中国境内无住所的个人，在一个纳税年度内在中国境内居住累计不超过90天的，其来源于中国境内的所得，由境外雇主支付并且不由该雇主在中国境内的机构、场所负担的部分，免予缴纳个人所得税。
The key to this regulation is that both "continuous or cumulative residence not exceeding 90 days" and "paid by an overseas employer and not borne by the employer's institution or place in China" need to be met simultaneously. If the remuneration is paid by an overseas employer but borne by an institution or place in China, this situation cannot be exempted from tax.
这一规定的关键在于“连续或者累计居住不超过90日”和“由境外雇主支付并且不由该雇主在中国境内的机构、场所负担”需要同时满足，如果报酬是由境外单位支付的，但是由在中国境内的机构、场所负担，这种情形是不能免税的。
IV. How do tax residents from both countries pay taxes?
四、同是两国税收居民如何缴税？
Foreign nationals are highly likely to become tax residents of both countries at the same time, so how can we solve the issue of personal income tax in this situation?
外籍人员有很大可能同时成为两国税收居民，那么在这种情况下，如何解决个税问题呢？
At present, China has signed bilateral tax agreements or arrangements with more than 110 countries and regions, which to some extent avoid the possibility of double taxation on taxpayers. If relevant issues are encountered in the actual situation, further determine the personal income tax issue of foreign personnel according to the specific provisions of the tax agreement.
目前，我国已与110多个国家和地区签署了双边税收协定或安排，税收协定在一定程度上避免了对纳税人重复征税的可能性。如果在实际情况中遇到相关问题，根据税收协定的具体规定进一步确定外籍人员的个税问题。
Due to the complex work, residence, and income situation of foreign nationals, coupled with the provisions of tax treaties, the calculation of individual income tax for foreign nationals is undoubtedly a relatively difficult issue. When enterprises and HR encounter related problems, they must strictly follow the regulations and gradually analyze and solve them.
由于外籍人员的工作情况、居留情况和收入情况在很多时候都比较复杂，再加上税收协定的规定，外籍人员的个税计算无疑是一个相对比较困难的问题。企业和HR在遇到相关问题时，务必严格按照规定，逐步分析解决。
