Chinese Taxation Non-dom Status Updates & Clarification

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The Chinese Government have recently published a new draft that will amend the current regulations on the country’s individual income tax regime; there will also be a test to assess tax residency based on a day-by-day counting method for public consultation.

The new regulations will make it much easier for an individual with non-dom status in China to be considered a Chinese resident for tax purposes. Under the current rules, a non-China-domiciled individual is considered a Chinese tax resident only if they remain in the country for a full 365-day fiscal year.