China-domiciled individuals and non-China-domiciled individuals who reside within Chinese territory for 183 days cumulatively within a tax year are considered tax residents. Tax residents should pay IIT on worldwide incomes according to the Law on Individual Income Tax of The People's Republic of China. Non-China-domiciled individuals and those who reside in China for less than 183 days cumulatively in a tax year are non-tax residents. Non-tax residents should pay IIT on China-source incomes only according to the Law on Individual Income Tax of the People's Republic of China.
Non-China-domiciled individuals who reside in China for 1 to 6 years need to pay IIT on overseas incomes paid by companies, enterprises, other economic organizations or individuals within Chinese territory only upon approval of the competent tax authority. Individuals living in China for more than six years should pay IIT on their worldwide incomes.