My Spanish friend filed his Chinese taxes for the first time. The app asked him to take a selfie.
My friend Carlos from Madrid has been working in Beijing for 18 months. He got a letter from the tax bureau: "Please complete your annual individual income tax reconciliation."He had no idea what this meant.
The Chinese tax system for foreigners:
If you're a foreigner in China earning income, you pay Individual Income Tax (IIT, 个人所得税).
The rates are progressive:
• ¥0–36,000/year: 3%
• ¥36,001–144,000/year: 10%
• ¥144,001–300,000/year: 20%
• Higher brackets: 25%, 30%, 35%, 45%
Your employer deducts tax monthly. But at the end of the year (March 1 – June 30), you must do an annual reconciliation.
What Carlos had to do:
Step 1: Download the "个人所得税" app. It's in Chinese.
Step 2: Register with his passport number and facial recognition. The app asked him to blink, nod, and open his mouth. Like a bank robbery movie.
Step 3: The app automatically pulled his income data from his employer. It showed his total salary, deductions, and tax paid.
Step 4: Claim deductions:
• Housing rent: ¥1,500/month deduction
• Children's education: ¥1,000/month per child
• Continuing education: ¥400/month
• Elderly parent support: ¥2,000/month
Carlos claimed housing rent. Saved him about ¥1,800 in taxes.
Step 5: Submit. Wait 2 weeks.
Result: He got a ¥2,300 refund deposited into his Chinese bank account.
The 183-day rule (the important one):
If you're in China for more than 183 days in a calendar year, you're considered a tax resident.
What this means:
• China taxes your worldwide income, not just your China salary
• Income from investments, property, or side gigs abroad may be taxable in China
• Most countries have double-taxation agreements with China to prevent paying twice
Carlos was in China for 280 days in 2025. So he technically should report his Spanish savings account interest.
He didn't.
"I'm not declaring €47 in bank interest to China. That's ridiculous."
He's probably fine. The tax bureau doesn't actively hunt small foreign income. But legally, he should report it.
What most foreigners actually do:
1. Let their employer handle monthly tax deductions
2. File the annual reconciliation in the app
3. Claim any deductions they're eligible for
4. Ignore small foreign income
5. Hope for a refund
Common deductions for foreigners:
• Housing rent (with a valid lease contract)
• Language training costs
• Home leave travel (for some employment contracts)
• Social insurance contributions
The penalty for not filing:
Technically: fines of ¥2,000–10,000.
In reality: if your employer already deducts tax properly and you have no additional income, the tax bureau usually doesn't chase you.
But if you're self-employed, a freelancer, or have significant side income — file. It's not worth the risk.
Carlos: "The app was surprisingly good. It knew everything I earned. It calculated everything automatically. I just had to claim my rent deduction and wait for the refund. Easier than Spanish taxes, honestly."
Pro tip: The tax filing period is March 1 – June 30 every year. Don't wait until June 29. The app crashes from traffic.
Anyone else filed Chinese taxes? Did you get a refund or owe more?
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