Before you start

Work permit and residence permit
Employment contract showing salary and allowance structure
A contemporaneous record of days in and out of China
Details of foreign income and any applicable tax treaty

Step-by-step

1
Determine residence status by counting days
An individual without a domicile in China present for 183 days or more in a calendar year is a tax resident for that year; below that, non-resident and taxed on China-sourced income only. Keep the count from your passport as you go.
OnlineWho: You
2
Diarise the six-year rule from year one
Worldwide income becomes taxable only from the seventh consecutive year of 183-day residence, and the count resets if any year falls below 183 days or if you take a single trip abroad of more than 30 consecutive days. Plan it in advance; it is invisible until it bites.
OnlineWho: You
3
Make the annual election between expatriate benefits and itemised deductions
Foreign nationals choose either the tax-exempt treatment of employer-provided housing, children's education, language training, meals, laundry, relocation, business travel and home leave, or the standard special additional deductions. Not both, and the election is locked for the tax year. Note that with Chengdu rents at a fraction of Shanghai's, the housing element of the expatriate route is worth less here — run the numbers rather than assuming.
Via employerWho: YouStart of each tax year
4
Confirm the current expiry of the expatriate benefits policy
The concession has been given sunset dates and extended repeatedly, most recently to 31 December 2027. Confirm the position each year with your employer's tax adviser rather than assuming.
Via employerWho: You
5
Check the social insurance contribution base
Contribution bases have a floor and a ceiling set against the local average wage and republished annually by the province or municipality. Sichuan's is well below Shanghai's, which means the deduction on the same nominal salary is smaller here. It also means a smaller pension account to reclaim on departure.
Via employerWho: You
6
File the annual reconciliation, 1 March to 30 June
Residents reconcile the previous calendar year's comprehensive income through the Individual Income Tax app or the tax bureau, claiming deductions and settling any difference. The obligation is yours even when the employer helps.
Mobile appWho: You1 March – 30 June

Documents you’ll need

Passport with all entry and exit stamps
Employment contract and monthly payslips
Employer withholding statements
Rental invoices (fāpiào) for any expatriate housing benefit claimed
Home-country tax residence certificate, where a treaty applies

Things most newcomers don’t know

The expatriate benefits election is worth less in a cheap city, and that is worth actually calculating.

The tax-exempt treatment of employer-provided housing is the largest component of the expatriate election for most people, and it scales with your rent. In Shanghai, where a family flat costs a great deal, the expatriate route almost always wins. In Chengdu, where the same flat costs a fraction, the standard special additional deductions — housing, children's education, elder care — can be competitive or better, particularly for someone supporting parents. The election is annual and locked, so run both numbers once rather than copying what a Shanghai colleague does.

Source: State Taxation Administration

One absence of more than thirty consecutive days resets the six-year clock.

China taxes a non-domiciled resident on worldwide income only from the seventh consecutive year of 183-day residence, and the count resets if any year falls below 183 days or contains a single absence exceeding 30 consecutive days. For anyone with overseas investments, rental property or a foreign business interest, planning that absence in year five or six is worth real money — and it is invisible until it bites.

Source: State Taxation Administration

Chengdu has no equivalent of the Greater Bay Area's 15% ceiling.

Shenzhen, Guangzhou and the other seven mainland Greater Bay Area cities refund individual income tax paid above a 15% effective rate for qualifying overseas talent, under a Ministry of Finance policy running to 31 December 2027. Chengdu has no such scheme, and the various local talent incentives it does operate are generally aimed at attracting domestic graduates rather than foreign professionals. When comparing a Chengdu offer with a Shenzhen one, this can dwarf the difference in headline salary.

Source: Ministry of Finance GBA individual income tax circular

The social insurance contribution base tracks the local average wage, and Sichuan's is low.

Social insurance contributions are calculated against a base with a floor and ceiling set against the local average wage and republished annually. Sichuan's average wage is well below Shanghai's or Beijing's, so the same nominal salary produces a smaller monthly deduction here. The flip side is a smaller individual pension account to reclaim if you leave China. Neither figure is large enough to drive a decision, but both surprise people who assume the deduction is national.

Source: Ministry of Human Resources and Social Security

Common mistakes to avoid

Copying a Shanghai colleague's expatriate-benefits election without running your own numbers.
Not tracking days in and out of China from your first year.
Reaching year seven without ever taking a 30-day absence.
Claiming the housing exemption without collecting rental fāpiào.
Comparing a Chengdu offer with a Shenzhen one on headline salary alone, ignoring the Bay Area subsidy.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.