The National Defense Authorization Act (NDAA) for 2027 is coming into focus after the House and Senate armed services committees advanced their versions of the bill earlier this month.
In an effort to attract more foreign talents, the State Administration of Foreign Experts Affairs (SAFEA) has quickened reform to make it easier for foreigners to apply for China’s work visa. Effective on April 1, 2017, the SAFEA rolled out a unified work permit system nationwide that began to process applications both ‘foreign experts’ and ordinary foreign nationals, referred to as R visas and Z visas respectively. Foreign applicants will benefit from this restructure of the foreign work permit system due to its simpler, clearer, and less time-consuming application process.
China’s Individual Income Tax (IIT) Law stipulates that all individuals working and deriving income from within the territory of China are subject to IIT. While Chinese nationals are taxed on all income sourced both domestically and overseas, non-Chinese nationals are only taxed on income deriving from within China. Though IIT is usually filed by employers’ HR and payroll teams on behalf of employees, both parties should be aware of tax thresholds, and implement sufficient salary planning to reduce tax liability. Furthermore, individuals are required to make annual declarations before the end of the financial year. In this article, we give a general overview of how IIT works for foreign nationals working China.
