China

{"ftc_utility":"high","fbar_trigger_notes":"Expats working in China are required to open local RMB bank accounts for salary payments, which will almost certainly exceed the USD 10,000 FBAR threshold. Chinese banks report account information under CRS. Both FBAR (FinCEN 114) and FATCA Form 8938 filing obligations are triggered.","ftc_utility_reason":"China imposes IIT at progressive rates up to 45% on employment income of tax residents. Chinese IIT paid on income that is also subject to US tax generates substantial foreign tax credits for US expats who do not use the FEIE. Because Chinese rates often exceed US rates, the FTC can fully offset US tax liability on China-source earned income. Many US expats in China use the FTC rather than the FEIE, or use both strategically depending on income level.","presence_day_count_notes":"China's primary work visa categories (Z visa for employment, then residence permit) require employer sponsorship. Tourists cannot legally work. The 330-day physical presence test is achievable but requires lawful long-term residency status. Exits for business travel outside China count as days outside China, which can help or hinder depending on the direction. Days in China's Special Administrative Regions (Hong Kong, Macau) may count as days outside mainland China for IIT purposes but count as days inside 'China' for US physical presence purposes - this distinction matters for both US FEIE counting and Chinese IIT residency analysis.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":38000,"local_tax_rate_on_earned_income":0.45,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by a China tax resident is subject to IIT at progressive rates up to 45%. Monthly pension receipts may qualify for the standard monthly basic deduction (CNY 5,000 per month as of 2019). Effective rates depend on the amount received.","tax_rate":0.45,"locally_taxed":true},"social_security":{"notes":"Article 17 (Social Security) of the 1984 US-China tax treaty generally assigns taxing rights on US Social Security benefits to the US (country of source). A China-resident US retiree receiving US Social Security should not face Chinese IIT on those payments under the treaty, though the practical enforcement and treaty claim process should be documented carefully.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"China does not recognize the tax-exempt character of Roth IRA distributions under US law. Distributions received by a China tax resident are treated as pension or other income and subject to IIT. The treaty does not explicitly exempt Roth distributions. US citizens owe no US federal tax on qualified Roth distributions but may face Chinese IIT with limited FTC offset since no US tax was paid.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"The US-China tax treaty (1984, with protocol) contains a pension article (Article 19) that generally grants taxing rights on pensions to the country of residence. A China-resident US expat receiving 401k or IRA distributions may be taxed in China as the country of residence. Distributions are treated as pension income and subject to IIT at progressive rates up to 45%. Treaty benefits must be claimed and the competent authority position on US-style defined contribution accounts can be ambiguous. US citizens must still file and pay US tax; the FTC mechanism is used to offset double taxation.","tax_rate":0.45,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.2,"notes":"Individual capital gains on equity transfers are taxed at a flat 20% under China IIT. Listed A-share stock gains are currently exempt for individuals, but gains on unlisted equity and real property transfers are taxed at 20%.","details":{"tax_type":"Capital Gains Tax","country_name":"China","country_iso_code":"CHN","source_references":["China IIT Law (2018 revision)","PwC China Tax Guide","KPMG China Tax Profile","State Administration of Taxation"],"last_verified_date":"2026-06-03","general_description":"China does not have a standalone capital gains tax. Gains are taxed under the Individual Income Tax (IIT) Law as a separate category called 'income from transfer of property' at a flat 20% rate. Gains on listed A-share and B-share securities held by individual investors are currently suspended from taxation under a State Council exemption. Gains on unlisted equity, real property, and other assets are subject to the 20% rate. Corporate capital gains are folded into taxable income and taxed at the standard 25% CIT rate.","corporate_capital_gains":{"rate":0.25,"tax_treatment":"Included in taxable income and taxed at the standard 25% corporate income tax rate. Reduced 15% rate applies to qualifying high-tech enterprises."},"individual_capital_gains":{"rate":0.2,"tax_treatment":"Taxed as 'income from transfer of property' at a flat 20% rate. Gains on listed A-share equities held by individuals are exempt under a temporary State Council suspension. Gains on real property, unlisted equity, and other asset transfers are taxable at 20%.","listed_equity_exemption":true,"listed_equity_exemption_notes":"Exemption on individual gains from listed A-share trading has been in place since 1994 and renewed continuously; it is policy-based, not codified in the IIT Law itself."}}}

{"notes":"Dividends paid by Chinese resident companies to individual residents are taxed at 20% under IIT, though dividends from listed A-share companies held for more than one year are reduced to 5%, and holdings of one month to one year are taxed at 10%. Non-resident individuals and foreign companies receive dividends subject to a 10% withholding tax (WHT) under domestic law, which may be reduced by tax treaty.","rates":[{"rate":0.2,"type":"flat","notes":"Standard IIT rate on dividends from unlisted companies paid to resident individuals."},{"rate":0.05,"type":"flat","notes":"Reduced rate for resident individuals holding listed A-shares for more than 12 months."},{"rate":0.1,"type":"flat","notes":"Reduced rate for resident individuals holding listed A-shares for 1 to 12 months."},{"rate":0.1,"type":"withholding","notes":"Standard WHT on dividends paid to non-resident individuals and foreign companies. Many treaties reduce this to 5% or 7.5%."}]}