Does China have to pay taxes when emigrating abroad?

China citizens who emigrate overseas can only leave after paying off their previous taxes, and the income gained from investing overseas may be declared and taxed in China because they constitute tax-paying residents in China in a certain tax year.

In 20 18, China made major amendments to the individual income tax, and the new tax law came into effect on 20 19 1. This reform not only increases the anti-tax avoidance provisions for the high-income rich, but also introduces the 183-day taxpayer judgment rule of international counterparts. At the same time, for those rich people who tend to emigrate, a system of clearing taxes in the mirror has been specially introduced. China citizens who emigrate overseas can only leave after paying off their previous taxes, and the income gained from investing overseas may be declared and taxed in China because they constitute tax-paying residents in China in a certain tax year.

The new Individual Income Tax Law stipulates that all residents who pay taxes in China must pay taxes. The concept of tax residents is that they have lived in China for 183 days. That is to say, no matter you are a citizen of China, a foreign citizen or a citizen of China who has permanent residency in other countries, as long as you have lived in China for 183 days in one year, you are recognized as a taxpayer in China, and you need to pay personal income tax on your income in China and income outside China according to the provisions of the new individual income tax law.

If you live in China for less than 183 days in a year, you are not regarded as a tax resident in China, but you must pay a tax on your income in China according to the new personal tax law.

Legal basis: Article 1 of the Individual Tax Law.

Individuals who have domicile or no domicile in China and have resided in China for 183 days in a tax year are "taxpayers", and their income obtained in China and abroad shall be subject to individual income tax in accordance with the provisions of this Law.