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China’s legislature has passed a new tax law that may in future require people who live in mainland China to pay far higher taxes on their global income. 

The legislation requires anyone who lives in mainland China for at least 183 days out of a year to pay taxes on all their income earned anywhere in the world. Previously, people were allowed five years before their global income became taxable. 

One of the drafters of the new law, National People’s Congress Standing Committee member Tam Yiu-chung, said he expects the authorities to announce a five-year grace period for Hong Kong people, adding that the mainland’s agreement with Hong Kong to prevent double taxation will be honoured.

Foreigners living on the mainland China will eventually face far higher taxes of up to 45 percent on any income they earn including salaries, profits, dividends, interest and rental income.

Pensioners who live on the mainland China but rent out their flats in foreign countries, for example, may eventually fall into the mainland tax net.

The new law is good news for mainlanders. Income tax exemptions will be raised from 3,500 to 5,000 yuan a month, and there’ll be special deductions for things like education, health care and rent.

Someone who earns 15,000 yuan a month will pay around 790 yuan in tax per month – down drastically from the current amount of 1870 yuan.

The new law will come into effect next year. If you fall into the above categories of foreigner living in China mainland and owns property in Thailand, contact Thanee Estate & Law at thaneeestate@gmail.com for a free consultation on your legal liabilities.

Thomas

Thomas has a university background in the UK and in Latin America, with studies in Languages and Humanities, Culture, Literature and Economy. He started his Asian experience as a publisher in Krabi in 2005. Thomas has been editing local newspapers and magazines in England, Spain and Thailand for more then ten years. He is currently working on several media projects in Thailand and abroad. He is also a property developer with active projects in Thailand and Bali, Indonesia. Apart from Thailand, Thomas has lived in Italy, England, Venezuela, Cuba, Spain, Bali. During the years Thomas has developed a great understanding of the cultures and the people in the country. He is also working freelance, writing short travel stories for travel magazines. On a different sector, Thomas is developing real estate projects, including the preparation and infrastructure of land plots to accommodate residential villas. He is currently operating in Bali and Thailand. Thomas is also a freelance Sales Manager, specializing in marketing quality heavy-clay second Hand Italian machineries in the Chinese and Asian markets. Thomas is pro-active, ambitious and hard-working, yet calm-mannered and a good planner.

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