What is the difference between residents and non-residents?

The difference between residents and non-residents: different concepts; different included objects; different definitions in international economic exchanges; different identities of foreign exchange holders in foreign exchange control regulations.

Specific content:

1. Different concepts.

Residents refer to people or legal persons who have been engaged in production and consumption in their own country for a long time. Citizens of other countries who meet the above conditions may also be considered residents of this country.

Non-residents refer to natural persons and legal persons other than residents.

2. The included objects are different.

Natural residents refer to those individuals who have lived in the country for more than one year, but official diplomatic envoys, military personnel stationed abroad, etc. are all non-residents of the country where they are located.

Legal residents refer to government agencies, enterprises and non-profit groups at all levels engaged in economic activities in the country. However, international institutions, such as the United Nations, the International Monetary Fund and other organizations, are non-residents of any country.

3. Different definitions in international economic exchanges.

The main significance of this definition is to accurately and uniformly reflect the international balance of payments of each country. According to this definition, only economic transactions that occur between residents and non-residents are international economic transactions.

4. Distinguish the identities of foreign exchange holders in foreign exchange control regulations. Generally speaking, since residents' foreign exchange receipts and payments involve the international balance of payments of the country of residence, the exchange control authorities have stricter controls on them. Since the foreign exchange receipts and payments of non-residents are not related to the international balance of payments of the country of residence, the foreign exchange control authorities have relatively loose control over them.

Residents refer to units and individuals who have engaged in economic activities and transactions within the territory of their country (or local area) for more than one year, including citizens, enterprises, non-profit groups, governments and regional organizations residing in the country. Central bank branches, also include foreign immigrants working in the country (such as multinational company executives), but do not include official diplomatic envoys, military personnel stationed abroad, tourists, students abroad, short-term overseas workers, international institutions and their representative offices (such as United Nations, International Monetary Fund, World Bank, World Trade Organization) as well as individuals and institutions transiting on aircraft. Official diplomatic envoys, military personnel stationed abroad, tourists, overseas students, short-term overseas workers, international institutions and their representative offices (such as the United Nations, the International Monetary Fund, the World Bank, the World Trade Organization), and individuals and institutions transiting on aircraft are all included. Non-resident.

Resident individuals refer to individuals who have a domicile in China, or who have no domicile and have lived in China for a total of 183 days in a tax year. Non-resident individuals refer to individuals who have no domicile and do not live in China, or who have no domicile but have lived in China for less than 183 days in total in a tax year.

Resident enterprises refer to enterprises established in China according to law, or enterprises established in accordance with foreign (regional) laws but with actual management institutions in China. Non-resident enterprises refer to enterprises that are established in accordance with the laws of foreign countries (regions) and whose actual management institutions are not in China, but have established institutions and places in China, or enterprises that have no institutions or places in China but have income derived from China. .

Legal basis:

Article 1 of the "Individual Income Tax Law of the People's Republic of China" has a domicile in China, or has no domicile and resides in China within a tax year. An individual who has completed one hundred and eighty-three days is a resident individual. Resident individuals shall pay personal income tax in accordance with the provisions of this Law on their income derived from within and outside China.

Article 2 of the "Enterprise Income Tax Law" stipulates that enterprises are divided into resident enterprises and non-resident enterprises. The term “resident enterprise” as mentioned in this Law refers to an enterprise established in accordance with the law within the territory of China, or an enterprise established in accordance with the laws of a foreign country (region) but with its actual management body located within the territory of China. The term "non-resident enterprise" as mentioned in this Law refers to an enterprise that is established in accordance with the laws of a foreign country (region) and whose actual management agency is not in China, but has established institutions and places in China, or has no institutions or places in China but has assets originating from China. Enterprises with domestic income.