China, People's Republic of

Individual - Foreign tax relief and tax treaties

Last reviewed - 30 June 2020

Foreign tax relief

Foreign taxes paid on non-China-source income may be claimed as a credit on the China tax return, but only to the extent of the IIT payable on the same category of income derived from the same country. Unused excess credits are non-refundable and can only be carried forward for a maximum of five years. Documentary evidence of the tax payment (e.g. tax payment certificate, tax clearance certificate) to substantiate claims of foreign tax credits is required by the Chinese tax authorities.

Tax treaties

As of 30 June 2020, China has concluded tax treaties/arrangements with 110 countries/regions.

As of 30 June 2020, China has signed tax information exchange agreements with Argentina, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey, Liechtenstein, and San Marino.

As of 30 June 2020, China has totalisation agreements in force with ten countries, including Canada, Denmark, Finland, Germany, the Republic of Korea, Luxembourg, the Netherlands, Spain, Japan and Switzerland. China has also signed totalisation agreements with France and Serbia, which have not entered into force.