Foreigners: 20 Tax Risks in Permanent Residency Applications
外国人：申请永久居留的20个税务风险
I.General Provisions on Income from Wages and Salaries.
一、关于工资薪酬所得的一般规定：
1. Whether foreign nationals should consolidate and declare their income from wages and salaries earned inside or outside of China for personal income tax depends on whether they have a tax liability.
1. 外籍人员在中国境内或境外获得的工资薪金所得，是否按规定合并申报缴纳个人所得税，取决于其是否具备纳税义务。
2. For foreign nationals who have resided in China for a full five years and continue to reside in China for a full year in the sixth year, it is necessary to verify whether their income from wages and salaries, as well as other income earned both inside and outside of China, has been declared and taxed according to regulations in China.
2. 对于在中国境内居住满五年且第六年在中国境内居住满一年的外籍人员，他们的中国境内外工资薪金所得和其他所得，是否已按规定在中国境内申报缴纳个人所得税，需要核实。
3. It is necessary to accurately calculate the residence and working time of foreign nationals within China and ensure the correct application of tax treaties (arrangements) and tax formulas in order to avoid errors.
3. 需要准确计算外籍人员在中国境内的居住时间和工作时间，并确保正确适用税收协定（安排）和计税公式，以避免错误。
4. It is necessary to verify whether foreign companies providing services such as technical support and business management support to domestic enterprises in China, and dispatching personnel to work within China, have declared and paid personal income tax on their wages and salaries according to Chinese regulations.
4. 如果境外公司为境内企业提供技术支持、经营管理支持等劳务，并将派遣人员在境内工作，他们的工资薪金所得是否已按规定在中国境内申报缴纳个人所得税，需要核实。
5. It is necessary to verify whether foreign nationals holding positions within the company (including affiliated companies) and concurrently serving as directors or supervisors have their director's and supervisor's fees consolidated with their personal salary income, and whether they have declared and paid personal income tax under the category of "income from wages and salaries".
5. 若外籍人员在公司（包括关联公司）任职并兼任董事、监事，他们所获得的董事费和监事费是否已与个人工资收入合并，并按照"工资薪金所得"项目申报缴纳个人所得税，需要核实。
6. It is required to convert the net income amount (including taxes fully borne by the employer, fixed and proportional contributions, as well as taxes exceeding those in the country of original residence) into a gross income amount, which should be verified when filing taxes.
6. 需要将不含税收入额（包括雇主全额负担的税款、定额负担、比例负担以及超过原居住国的税款）换算成含税收入额，并在申报纳税时核实。
II.Regarding bonuses, subsidies, and in-kind benefits:
二、关于奖金、补贴、实物福利：
7. The full amount of income from wages and salaries should be taxed. It is necessary to verify whether bonuses for multiple months, semi-annual bonuses, task completion bonuses, etc., received in the current month have been consolidated with income from wages and salaries and declared for personal income tax.
7. 工资薪金所得的全额应纳税，对于当月获得的数月奖金、半年奖、任务完成奖等，是否已与工资薪金所得合并申报缴纳个人所得税，需要核实。
8. If the obligation to pay taxes on income from wages and salaries is less than one month, or there is no tax obligation in the current month, it needs to be verified whether bonuses for multiple months, semi-annual bonuses, task completion bonuses, etc., have been declared and paid as personal income tax separately as one month's income from wages and salaries.
8. 若工资薪金所得纳税义务未满一个月或当月无纳税义务，对于数月奖金、半年奖、任务完成奖等是否已单独作为一个月工资薪金所得申报缴纳个人所得税，需要核实。
9. It is necessary to accurately calculate and declare the income obtained by foreign nationals from year-end lump sum bonuses, double year-end salaries, and year-end labor dividends, in accordance with regulations.
9. 需要按规定正确计算和申报外籍人员获得的年终一次性奖金、年终双薪、年终劳动分红等所得。
10. It is necessary to verify whether housing subsidies, meal subsidies, relocation fees, laundry expenses, business trip allowances (excluding reasonable standards), home visit expenses, children's education fees, language training fees, etc., which are paid in cash, have been consolidated with income from wages and salaries for the declaration and payment of personal income tax. Furthermore, verification is needed to determine if any other allowances and benefits provided in various forms (excluding the actual reimbursement of communication expenses and expenses within the standard), such as transportation fees and vehicle use subsidies, have also been consolidated with income from wages and salaries for tax declaration and payment.
10. 对于以现金形式发放的住房补贴、伙食补贴、搬迁费、洗衣费、出差补贴（除合理标准外）、探亲费、子女教育费、语言训练费等，是否已与工资薪金所得合并申报缴纳个人所得税，以及以各种形式发放的其他补贴、津贴（除通信费实报实销和标准内的费用外）如交通费、用车补贴等，是否已与工资薪金所得合并申报缴纳个人所得税，需要核实。
11. It is necessary to assess the value of benefits provided in kind and consolidate them with income from wages and salaries for the declaration and payment of personal income tax.
11. 需要对以实物形式发放的福利进行折算价值，并与工资薪金所得合并申报缴纳个人所得税。
III.Regarding insurance, equity incentives, and severance pay:
三、关于保险、股权激励和退职费：
12. It is necessary to verify whether the various commercial insurances purchased by the company for foreign personnel and their families, as well as the social insurance fees paid, have been consolidated with the income from wages and salaries paid in the current month and declared for personal income tax payment in accordance with regulations.
12. 公司为外籍人员及其家属购买的各类商业保险以及支付的社会保险费，是否已按规定与当月支付的工资薪金所得合并申报缴纳个人所得税，需要核实。
13. It is necessary to calculate and declare the personal income tax on the enterprise annuity contributions received by foreign personnel participating in corporate pension plans in accordance with regulations.
13. 需要按规定计算申报外籍人员参加企业年金计划所得到的企业年金缴费所得的个人所得税。
14. It is required to calculate and declare the personal income tax on incentive rewards such as stock options, stock appreciation rights, restricted stock, and shares received by foreign personnel, in accordance with regulations.
14. 需要按规定计算申报外籍人员获得的股票期权、股票增值权、限制性股票、股票等激励奖励所得的个人所得税。
15. It is necessary to calculate and declare the personal income tax on income such as severance pay, compensation for termination of labor contracts, and settling-in allowances received by foreign personnel, as per the regulations.
15. 需要按规定计算申报外籍人员获得的退职费、解除劳动合同补偿以及安家费等所得的个人所得税。
IV. Other Matters:.
四、其他事项：
16. It is necessary to verify whether foreign personnel who only serve as directors or supervisors in the company (including affiliated companies) have declared and paid personal income tax under the category of "income from remuneration for personal services".
16. 若外籍人员仅在公司（包括关联公司）担任董事、监事，是否已按"劳务报酬所得"项目申报缴纳个人所得税，需要核实。
17. It is necessary to verify whether the enterprise has withheld personal income tax in accordance with the "income from remuneration for personal services" for the provision of independent personal services to foreign individuals.
17. 针对企业向外籍人员提供独立个人劳务的情况，是否已按"劳务报酬所得"项目扣缴个人所得税，需要核实。
18. It is necessary to verify whether non-foreign-invested enterprises have fully withheld personal income tax on dividends and bonus income paid to the foreign individuals who hold shares in the company.
18. 非外商投资企业向参股的外籍人员个人支付的股息、红利收入，是否已全额扣缴个人所得税，需要核实。
19. It is necessary to verify whether non-foreign-invested enterprises have declared and paid the personal income tax according to regulations when retained earnings and capital reserves are converted to increase the capital stock held by foreign individuals.
19. 非外商投资企业留存收益和资本公积转增给外籍人员股本，是否已按规定申报缴纳个人所得税，需要核实。
20. It is necessary to verify whether foreign individual shareholders have declared and paid the personal income tax as required when transferring equity in a domestic enterprise.
20. 需要核实外籍人员个人股东转让境内企业股权是否已按规定申报缴纳个人所得税。
Foreign Employment Requirements:
外国人就业要求：
Foreigners must meet the following conditions to be employed in China:
外国人在中国就业需满足以下条件：
1. Must be at least 18 years of age and in good health;
1. 年满18周岁，身体健康；
2. Possess the professional skills and relevant work experience necessary for the job;
2. 具备从事工作所需的专业技能和相应的工作经历；
3. Have no criminal record;
3. 无犯罪记录；
4. Have a confirmed employing entity;
4. 有确定的聘用单位；
5. Hold a valid passport or other international travel document that can substitute for a passport.
5. 持有有效护照或其他可代替护照的国际旅行证件。
According to Article 41 of the "Exit and Entry Administration Law of the People's Republic of China," foreigners must obtain a work permit and a residence permit for work in accordance with regulations in order to work within Chinese territory.
根据《中华人民共和国出境入境管理法》第四十一条的规定，外国人在中国境内工作必须按规定取得工作许可和工作类居留证件。
