Working in China: 180 days rule?

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  1. #1

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    Working in China: 180 days rule?

    Does anybody know the exact rules concerning paying tax in China or know whom to ask.

    I live in HK and have a new job in SZ and commute daily. I understand that if you are in China more than 180 days you will need to pay tax in China. I had thought that a day was only counted if you stayed overnight. Is this accurate?


  2. #2

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    Quote Originally Posted by Sand:
    Does anybody know the exact rules concerning paying tax in China or know whom to ask.

    I live in HK and have a new job in SZ and commute daily. I understand that if you are in China more than 180 days you will need to pay tax in China. I had thought that a day was only counted if you stayed overnight. Is this accurate?
    I thought it was 163 days a year, anyways, as soon as you enter China it is counted as a day is what i heard. go over the limit then you need to pay 40% tax. Apparently they have a link up with the Inland revenue that can check how much you are earning and how much u paid tax in HK so that they can stiff you before letting you leave. All this info was given to me by a Hongkie who travels up and down a lot himself and tries to limit the amount of days he visits China. I limit myself as well.

    ah just found out its not more than 183 days a year.
    Last edited by wtbhotia; 14-11-2008 at 04:46 PM. Reason: new info found on internet

  3. #3

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    personal income tax in China -

    check out this website, it has a lot of information, i cant be arsed to read that much on a Friday afternoon. LOL

  4. #4

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    Quote Originally Posted by wtbhotia:

    ah just found out its not more than 183 days a year.
    Any ideas whether these days only count if you were generating income or providing services on the mainland?

    What if you 'live/stay' in SZ, but do all your 'work' in HK?

    I was actually considering commuting to and from SZ for a few months to improve my Mandarin (and to rent a decent apartment for next to nothing) I would be working and earning in HK, and would simply cross the border each day to return to the apartment.

  5. #5

    You can live in Shenzhen as long as you like and you are unlikely ever to be asked about your income and tax situation. (I have friends who are retired in SZ, though no such status legally exists for foreigners, However, you will not be able to import or export any household goods into China unless you are working there for a licensed company and you get a residence and work permit.

    If you pay tax in HK there is a double-taxation treaty with China and I believe that the Govt. there has agreed to equaliaze with HK so they get their share of the tax revenue without applying any additional tax burden on you.


  6. #6

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    Quote Originally Posted by supercat7:
    You can live in Shenzhen as long as you like and you are unlikely ever to be asked about your income and tax situation. (I have friends who are retired in SZ, though no such status legally exists for foreigners, However, you will not be able to import or export any household goods into China unless you are working there for a licensed company and you get a residence and work permit.

    Hey, that's excellent info; thanks a lot.

    With regards to the household goods you mentioned, does that apply to new items, or would I also be unable to bring my personal effects and furniture across the border?

  7. #7

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    Quote Originally Posted by gazmario:
    Hey, that's excellent info; thanks a lot.

    With regards to the household goods you mentioned, does that apply to new items, or would I also be unable to bring my personal effects and furniture across the border?
    My movers waited with customs clearance until I presented them with a work and residence permit. They said without those permits I would have to pay X% import tax on each item. So I guess yes, you can bring your items across the border, but it might cost you without the right paperwork.

  8. #8

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    Quote Originally Posted by gazmario:
    I was actually considering commuting to and from SZ for a few months to improve my Mandarin (and to rent a decent apartment for next to nothing) I would be working and earning in HK, and would simply cross the border each day to return to the apartment.
    The rent is a lot cheaper but a big BUT, a 600 sq/ft apartment in a decent area will set u back 3-6K RMB and thats RMB which is higher than the HK dollars, you wont find good food up there to cook at home, lots of expats keep on asking where to buy this and where to buy that on Shenzhen and Shekou Party: Apartment Rentals, Bars, Restaurants, Real estate, Jobs, Events, Hotels in Guangdong, China or Shenzhen Stuff

    I commute to shenzhen not as much as i did before but still 3 times a week minimum and god do i hate it, i have a HKID card so the HK side is still managabe but when reaching China then i need to que up and fill out forms. Passport fills up very fast (2 chops per day) and friggin BNO passports arent exactly cheap.

    Does your passport need to chopped when entering HK, if YES then I would strongly recommend that you find a place still in hk BUT closer to the border, Villages near Sheung Shui you still can find very good deals, 4-5 K for a 700 sq/ft house, 10-15 mins from Sheung Shui train station.

  9. #9

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    I have HK ID, so HK side is no problem. China side hasn't been an issue so far, I generally fill out the form before getting to the border and the waits times for passport check aren't a concern.

    The SZ office is very close to Lo Wu so the commute is OK.

    I do not plan on moving to SZ although I'm not against living in China.
    I just need to clarify the tax situation and what counts as a "day".


  10. #10

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    Hello,
    I have an apartment in shenzhen and have rental income from it. Since I stay in hongkong do I need to pay tax?


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