In order to implement the amended Individual Income Tax Law of the People’s Republic of China and Implementation Regulations for Individual Income Tax Law of the People’s Republic of China, the criteria for determining the period of residence for individuals without a domicile in China (hereinafter referred to as “non-domiciled individuals”) are hereby announced as follows:

I. Where a non-domiciled individual has resided in China for an aggregate of 183 days or more within a tax year, and in each of the preceding six years the individual has accumulated 183 days or more of residence in China with no single departure exceeding 30 days in any of such six years, his or her income derived from both within and outside China during the tax year shall be subject to individual income tax. Where in any of the preceding six years the individual’s cumulative days of residence in China is less than 183 days or any single departure in any of such six years exceeds 30 days, his or her income derived from outside China and paid by overseas entities or individuals in the tax year shall be exempt from individual income tax.

As is mentioned in the preceding paragraph, “the preceding six years” refers to the six consecutive years from the year preceding the tax year to the sixth year preceding the tax year. The starting year for the “preceding six years” shall be 2019 or any year thereafter.

II. The cumulative number of days of residence in China of a non-domiciled individual during a tax year shall be the total number of days of the individual’s cumulative stay in China. Where the individual’s stay in China lasts for 24 hours or more on the day of stay, it shall be counted as a day of residence in China; where the individual’s stay in China lasts for less than 24 hours, it shall not be counted as a day of residence in China.

III. This Announcement shall enter into force from January 1, 2019.

It is hereby announced.

Ministry of Finance

State Taxation Administration

March 14, 2019

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.