In today's globalized economy, China stands as a pivotal player, attracting professionals from around the world. Whether you're considering a career move to China or already making your mark there, navigating the administrative landscape is crucial. This guide offers essential insights into obtaining work permits, managing social insurance, and handling individual income tax, helping you to streamline the processes and focus on your professional journey in China.

Work permit

Documents required for foreigners to apply for work permit are as follows:

(I) A completed Application Form for Foreigner's Work Permit;

(II) Supporting documents concerning work qualifications;

(III) Certificates of the highest academic degree (diploma) or relevant approved documents and professional qualification certificates authenticated by apostille (from member countries of the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents), or by Chinese embassies or consulates abroad;

(IV) Certificates of no criminal record;

(V) Physical health examination certificates;

(VI) Job contracts or certificates of employment (including letters of dispatch from multinational companies);

(VII) The applicants' valid passports or other valid international travel documents;

(VIII) The applicants' bareheaded, full-faced photos taken within 6 months;

(IX) Relevant supporting documents of the accompanying family members;

(X) Other relevant materials as may be required.

The method and place of handling: online applications submitted by the employers; local service centers for foreigners working in China.

Social insurance

Foreigners who work in China shall access social security in accordance with the relevant provisions of the Social Insurance Law of the People's Republic of China and the Interim Measures for Social Insurance System Coverage of Foreigners Working within the Territory of China.

Eligible individuals

(I) Individuals who are legally employed in China and have legally obtained the Foreigner's Work Permits, residence permits for foreigners, and Foreign Permanent Resident ID Cards.

(II) Individuals who have signed labor contracts with domestic employers in China and are paid by the employers, or those who have signed contracts with foreign companies and are dispatched to work in China, with your salaries paid by the domestic employers.

(III) Individuals in the employment age (males aged 60 or below; females aged 55 or below).

Insurance payment

(I) If individuals who work within the territory of China just accessed social security, you shall pay the premiums from the month when you start to work in China;

(II) The insurance base pay and the share borne by employers for foreign employees shall be the same as that of Chinese employees according to local standards.

Mutual exemption provisions 

According to the website of the Ministry of Human Resources and Social Security of the People's Republic of China, China has signed social security agreements with many countrie sincluding Germany, Republic of Korea, Denmark, Canada, Finland, Switzerland, the Netherlands, France, Spain, Japan, Serbia, and Luxembourg. Individuals who hold the nationality of a country that has concluded a social security agreement with China may be exempt from the obligation to pay insurance premiums for specified periods as stipulated in the agreement.

Places for handling social insurance: Government service halls or the service halls of bureaus of human resources and social security in the locality where the applicants work.

Website address of the Ministry of Human Resources and Social Security: http://www.mohrss.gov.cn

Payment of individual income tax

Residents and non-residents

An individual who is domiciled in China, or an individual who is not domiciled in China but has resided in China for an aggregate of 183 days or more within a tax year, shall be regarded as a resident individual. Income received by a resident individual from within China or overseas shall be subject to individual income tax pursuant to the provisions of the Individual Income Tax Law of the People's Republic of China.

An individual who is not domiciled in China and does not reside in China, or an individual who is not domiciled in China but has resided in China for less than an aggregate of 183 days within a tax year, shall be regarded as a non-resident individual. Income received by a non-resident individual from within China shall be subject to individual income tax pursuant to the provisions of the Individual Income Tax Law of the People's Republic of China.

Annuareconcilation for comprehensive income

Foreign nationals, who are tax residents of China and obtain comprehensive incomes from salary and wages, remuneration for personal services, author’s remuneration and royalties in a tax year, shall fill in the Annual Individual Income Tax Return for Self-Filing and associated forms within the period from March 1 to June 30 of the following year, and do the annual tax reconciliation with the tax authority. Foreign nationals who meet one of the following conditions shall be exempted from the annual reconciliation of individual income tax:

(I) The conditions specified in the tax policy for exemption from the annual reconciliation are met;

(II) The amount of tax withheld matches with the amount of the tax payable;

(III) The conditions for refunding are met, but the claim of tax refunds is waived.

If foreign nationals are unsure whether the annual reconciliation needs to be done, they can seek guidance regarding relevant policies and assistance from the taxpayer service halls of local tax authorities.

Settlement channels: Local government service halls or tax authorities' taxpayer service halls, Individual Income Tax APP, and the Natural Person E-Tax Platform. Foreign nationals need to visit the local taxpayer service halls to apply for a registration code before the first-time use of the Individual Income Tax APP or the Natural Person E-Tax Platform. Taxpayers can seek assistance from taxpayer service halls.

Foreign nationals who are nonresident individuals are not required to deal with the annual reconciliation.

Website address of the Natural Person E-Tax Platform: https://etax.chinatax.gov.cn

Enjoying preferential treatment under tax treaties

China has signed agreements on avoidance of double taxation with 114 countries(regions). Foreign nationals who are eligible for tax reductions or exemptions may judge by themselves the conditions for enjoying such treatment. They can choose to enjoy the treatment upon self-filing or through withholding agents, and relevant documentation shall be retained for future inquiries. For details of the agreements, please refer to the tax treaty section on the website of the State Administration of Taxation.

Website address of tax treaty section: https://www.chinatax.gov.cn/chinatax/n810341/n810770/common_list_ssty.html

Source: National Immigration Administration

This article is updated on April 22, 2024.