Forums > Living in Kunming > Many Condo complexes (小区） are giving Covid testing

Today saw what it's like for folks not hooked up with current tech. Went with my wife's elderly parents for PCR test. Baba has cell phone but no money link to WeChat. Mama has flip phone but no cell. Baba paid cash, my wife used her own phone on Mama's behalf, will get results on her own cell. Complicated immensely, finally got through everything in 20 minutes, fortunately queue was short.

On a recent trip outside Yunnan, my wife had to register the PCR test on her own cell on my behalf. Later realized my cell couldn't do it because I forget to shut down vee pee en.

Forums > Living in Kunming > Proposed IIT Reform

The second source I listed above includes the category of "Contingent and other forms of income" which are taxed at 20%. I don't know if "other" casts a net over pensions. If they are exempt, many retirees will still be on the hook for interest and dividends.

Forums > Living in Kunming > Proposed IIT Reform

90 cumulative days was actually advantageous for expats who lived in Hong Kong but commuted for work to the mainland.

Forums > Living in Kunming > Proposed IIT Reform

Under the old Five-Year Rule, you could reset the clock with 90 cumulative days outside China in any given year. But that was left out with the Six-Year Rule, and the only reset now is 31 consecutive days.

Forums > Living in Kunming > Proposed IIT Reform

I’m a retiree living in China. No trips abroad due to covid. Wondering when the dreaded six-year rule kicks in. See below for what I found.

Note that this is for a person without any China-sourced income, past or future. Different rules apply to expats who make money here. See sources at end of this message.

1. Foreigners who are residents of mainland China for six consecutive years will be subject to taxation on their worldwide income starting in the seventh year

2. If there is a single departure outside of mainland China of 31 or more consecutive days at any point during the six years, the clock to count tax residency will be reset

3. A foreigner is deemed to have spent a year in China if he or she stays in the country for at least 183 days within a given calendar year

4. Those who stay in China for less than 24 hours within a single day will not be counted as having a day of residence

5. The number of years spent in China before 2019 will not be included in the calculation

Given the above, the crucial date is December 31, 2024. That’s the end of the grace period after the Six-Year Rule came into force on January 1, 2019.

Conclusion: Make a 31-day trip outside China before that crucial date, otherwise get ready to pay tax on worldwide income.

Unanswered questions …

Can a trip to Hong Kong, Macao, or Taiwan reset the tax residency clock? Are they “outside” mainland China for the purposes of the rule? (Point 2. above) For one site I looked at, they opined 31 days in Hong Kong would indeed reset the clock.

What sort of “registration” is desirable/required for an expat with no China-sourced income? Fly under the radar? What are the pros and cons?

Sources:

www.china-briefing.com/[...]

www.china-briefing.com/[...]