Where the number of years in each of which an individual who does not have residence in China has stayed for a total of 183 days or more in China is less than 6 years consecutively, he or she may, after filing a report with the tax authority having jurisdiction, be exempt from individual income tax on his or her income derived from outside China paid by overseas entities or individuals.

An individual who does not have a residence in China and has stayed in China for a total of less than 90 days during a tax year shall be exempt from individual income tax on the part of his or her income which is derived from inside China and paid by employer outside China and not borne by the employer’s institutions or venues inside China.

Reasonable housing, food, and laundry allowances received by foreign individuals in non-cash or reimbursement form shall be exempt from individual income tax. Taxpayers shall, when filing salary income tax returns in the month following the initial receipt or any change in amount/payment method of such allowances, submit supporting documents to the competent tax authorities for verification and tax-exemption approval.

Relocation income reimbursed to foreign individuals for assuming or leaving positions in China shall be tax-exempt for the reasonable part, subject to submission of valid supporting documents and approval by the tax authorities. However, monthly/regular payments labeled as "relocation expenses" by foreign-invested enterprises to foreign employees shall be taxed as salary income.

Domestic and overseas business trip subsidies received by foreign individuals at reasonable standards shall be exempt from individual income tax. The taxpayer shall submit supporting documents (photocopies of transportation/accommodation invoices or the company's official travel itinerary) to the competent tax authorities for tax-exemption approval.

Foreign individuals shall be exempt from tax on family visit travel expenses, provided that they submit photocopies of transportation receipts. The exemption applies only to expenses verified by the tax authorities as genuinely used for personal visits, with a reasonable frequency and expenditure limit annually.

Language training fees and children's education subsidies for studies in China shall be tax-exempt within reasonable limits. Taxpayers shall provide valid expenditure vouchers and proof of education duration to the tax authorities for review.

Tips

1. Criteria for determining the length of residence of individuals without domicile in China:

(1) Where an individual without Chinese domicile has a single departure exceeding 30 days during any calendar year in which they accumulate 183+ days of residence in China, the consecutive-year count for 183-day residence shall restart.

(2) The cumulative days in China shall be calculated based on physical presence. A full day (24+ hours) in China counts as one residence day; partial days shall not be counted.

2. Foreign individuals qualifying as tax residents may elect either special additional IIT deductions or tax exemptions for housing/language training/children's education subsidies. Such election shall be binding for the entire tax year and may not be altered (valid through December 31, 2027).