With the rapid development of China's economy, an increasing number of foreigners choose to work, invest, or set up a company in China. However, China's individual income tax (IIT) system is complex, especially for different types of income sources common in business activities, each with distinct tax treatment methods. This article uses a practical case of a foreign executive to elaborate on the tax liabilities for various incomes in China, including salary, remuneration for labor services, author's remuneration, royalties, business income, interest, dividends, property rental, and transfer income. It aims to help foreigners engaged in business or employment in China better understand China's IIT policies, plan taxes rationally with the help of professional accounting advice, and avoid unnecessary tax risks through this case analysis.

随着中国经济的快速发展，越来越多的外籍人士选择来华工作、投资或设立公司。然而，中国的个人所得税体系复杂多样，尤其是对于商业活动中常见的不同类型收入来源，税务处理方式各有不同。本文通过一个外籍高管的实际案例，详细解析其在华各类所得的纳税情况，包括工资薪金、劳务报酬、稿酬、特许权使用费、经营所得、利息、股息、财产租赁及转让所得等。希望通过这一案例分析，帮助在华从事商业或工作的外籍人士更好地理解中国个人所得税政策，在专业会计建议下合理规划税务，避免不必要的税务风险。

Taxpayer Background

纳税人背景

John Smith, a foreign technical executive, has worked for a domestic tech company since 2021. He does not participate in the five social insurances and one housing fund, nor does he claim special additional deductions. He has resided in China for four full years (183 days/year). His income in 2024 is as follows (in RMB):

John Smith 是一位外籍技术高管，自2021年起在国内某科技公司任职，不参与五险一金，不参与专项附加扣除，已在中国境内居住满四年（183天/年）。他的2024年收入构成如下（人民币）：

1
Comprehensive Incom
综合所得

• Salary and Wages: Monthly salary of 100,000 RMB (including a housing allowance of 15,000 RMB), and an annual bonus of 200,000 RMB.

• 工资薪金所得：月薪100,000元（内含15,000元住房补贴），年终奖200,000元。

• Remuneration for Labor Services: Income of 80,000 RMB from providing technical consulting for a domestic company.

• 劳务报酬所得：为国内某公司提供技术咨询，取得收入80,000元。

• Author's Remuneration: Income of 50,000 RMB from publishing a technical book.

• 稿酬所得：出版技术书籍，获得稿酬50,000元。

• Royalties: Income of 60,000 RMB from licensing a patent to a domestic company.

• 特许权使用费所得：向国内某公司授权使用其专利技术，取得收入60,000元。

Analysis

分析

• Salary and Wages:

Monthly salary: 100,000 RMB × 12 months = 1,200,000 RMB

Tax-exempt housing allowance: 15,000 RMB/month × 12 = 180,000 RMB (deducted from salary)

Taxable salary total: 1,200,000 - 180,000 = 1,020,000 RMB

Annual bonus: 200,000 RMB (taxed separately)

• 工资薪金所得：

月薪100,000元 × 12个月 = 1,200,000元

免税住房补贴：15,000元/月 × 12 = 180,000元（需从工资薪金中扣除）

应税工资总额 = 1,200,000 - 180,000 = 1,020,000元

年终奖200,000元（单独计税）

• Remuneration for Labor Services: 80,000 RMB × (1 - 20%) = 64,000 RMB

• 劳务报酬所得：80,000元 × (1 - 20%) = 64,000元

• Author's Remuneration: 50,000 RMB × (1 - 20%) × 70% = 28,000 RMB

• 稿酬所得：50,000元 × (1 - 20%) × 70% = 28,000元

• Royalties: 60,000 RMB × (1 - 20%) = 48,000 RMB

• 特许权使用费所得：60,000元 × (1 - 20%) = 48,000元

Taxable Income for Comprehensive Income:

综合所得--应纳税所得额：

= Taxable salary (1,020,000) + Remuneration for labor services (64,000) + Author's remuneration (28,000) + Royalties (48,000) - Basic deduction (60,000) (5,000 RMB/month × 12)

= 1,100,000 RMB

= 应税工资薪金1,020,000 + 劳务报酬64,000 + 稿酬28,000 + 特许权48,000 - 基本减除费用60,000（5,000元/月×12）

= 1,100,000元

Applicable tax rate: 45% (for amounts exceeding 960,000 RMB)

Quick calculation deduction: 181,920 RMB

☆IIT for comprehensive income = 1,100,000 × 45% - 181,920 = 313,080 RMB

适用税率：45%（超过960,000元部分）

速算扣除数：181,920元

☆综合所得应纳税额 = 1,100,000 × 45% - 181,920 = 313,080元

Annual bonus taxed separately:

年终奖单独计税：

200,000 ÷ 12 ≈ 16,666.67 RMB → Applicable tax rate 20%, quick calculation deduction 1,410 RMB

☆IIT for annual bonus = 200,000 × 20% - 1,410 = 38,590 RMB

★Total IIT for comprehensive income: 313,080 + 38,590 = 351,670 RMB

200,000 ÷ 12 ≈ 16,666.67元 → 适用税率20%，速算扣除数1,410元

☆年终奖应纳税额 = 200,000 × 20% - 1,410 = 38,590元

★综合所得总税额：313,080 + 38,590 = 351,670元

2
Business Income
经营所得

Operates a sole proprietorship, "Smith Tech Consulting Studio," (a common form of business set up in China for individuals) with annual business revenue of 500,000 RMB and cost expenses of 300,000 RMB.

注册个体工商户"Smith科技咨询工作室"（一种常见的个人在华开展业务/设立公司的形式），年度经营收入500,000元，成本费用300,000元。

Analysis

分析

Taxable income = 500,000 - 300,000 = 200,000 RMB, applicable tax rate 20%, quick calculation deduction 10,500 RMB.

★ IIT liability = 200,000 × 20% - 10,500 = 29,500 RMB

应纳税所得额 = 500,000 - 300,000 = 200,000元，适用税率20%，速算扣除数10,500元。

★应纳税额= 200,000 × 20% - 10,500 = 29,500元

(Proper accounting of costs and expenses is crucial for accurately calculating business tax liability.)

(准确进行成本费用的会计核算对于计算经营税负至关重要。)

3

Classified Income

分类所得

01

Interest Income: Savings interest of 8,000 RMB from a domestic bank.

利息所得：在国内某银行储蓄存款利息8,000元。

Analysis

分析

• Chinese tax residents (including qualified long-term resident foreigners): Deposit interest is tax-exempt.

• 中国税收居民（包括符合条件的长期居住外籍人士）：存款利息免税。

• Non-Chinese tax resident foreigners: Deposit interest is typically taxable, but preferential rates can be applied based on tax treaties.(Consulting a tax professional is advised when setting up financial arrangements.)

• 非中国税收居民外籍人士：存款利息通常征税，但可依据税收协定申请优惠税率。(建议在设立金融安排时咨询税务专业人士。)

02

Dividends and Bonus Income: Dividends of 30,000 RMB from a foreign-invested enterprise.

股息红利所得：从外商投资企业取得股息30,000元。

Analysis

分析

Temporary exemption from individual income tax on dividends and bonus income received by foreign individuals from foreign-invested enterprises.

外籍个人从外商投资企业取得的股息、红利所得暂免征收个人所得税。

03

Property Rental Income: Renting an apartment at 12,000 RMB/month.

财产租赁所得：出租一套公寓，月租金12,000元。

Analysis

分析

Annual rental income = 12,000 RMB/month × 12 = 144,000 RMB

★ IIT liability = 144,000 × (1 - 20%) × 20% = 23,040 RMB

应纳税所得额（年租金） = 月租金12,000 × 12 = 144,000元

★应纳税额 = 144,000 × (1 - 20%) × 20% = 23,040元

(Regular rental business income is taxed under this category.)

(常规租赁业务收入按此类目征税。)

04

Property Transfer Income: Selling a property held for 2 years, with a transfer price of 5,000,000 RMB, original value of 3,500,000 RMB, and reasonable expenses of 200,000 RMB.(Accurate record-keeping of property costs is essential for accounting and tax purposes when engaging in property business or investment in China.)

财产转让所得：转让一套持有2年的房产，转让收入5,000,000元，房产原值3,500,000元，合理费用200,000元。(在进行中国房产投资或商业活动时，准确记录房产成本对于会计和税务申报至关重要。)

Analysis

分析

Taxable income = (5,000,000 - 3,500,000 - 200,000) = 1,300,000 RMB

★ IIT liability = 1,300,000 × 20% = 260,000 RMB

应纳税所得额 = (5,000,000 - 3,500,000 - 200,000) = 1,300,000元

★应纳税额 = 1,300,000 × 20% = 260,000元

4

Case Summary

案例总结

★ Total IIT liability for 2024

= 351,670 RMB (comprehensive income) + 29,500 RMB (business income) + 23,040 RMB (property rental income) + 260,000 RMB (property transfer income from real estate)

= 664,210 RMB

★2024年度总应纳税额

= 351,670元(综合所得) + 29,500元(经营所得) + 23,040元(财产租赁所得) + 260,000元(财产转让所得<房产>)

= 664,210元

Through this case analysis, it is evident that foreigners engaged in business, investment, or employment in China face tax obligations across multiple income types, each with different tax calculation methods and preferential policies. Rational use of tax exemptions, special deductions, and tax treaty benefits can effectively reduce tax burdens. It is highly recommended that foreigners in China plan their taxes in advance based on their circumstances and consult professional tax and accounting advisors when necessary to ensure compliance and optimize tax costs. We hope this article provides valuable reference for your tax management and business operations in China, facilitating a smoother work, investment, and life experience.

通过以上案例分析，我们可以看到，在中国从事商业、投资或工作的外籍人士，其税务义务涉及多种收入类型，每种收入的计税方式和优惠政策各不相同。合理利用免税政策、专项扣除以及税收协定优惠，可以有效降低税负。强烈建议在华外籍人士根据自身情况，提前做好税务规划，必要时咨询专业的税务和会计顾问，以确保合规并优化税务成本。希望本文能为您的在华税务管理和商业运营提供有价值的参考，助您在中国的工作、投资与生活更加顺利。

Author 作者 | Alex