Tax residence in China for U.S. citizens and green card holders

China treats you as a resident individual, taxed on income from inside and outside China, if you have a domicile there — habitual residence by reason of household registration (hukou), family or economic interests — or, without a domicile, if you reside in China 183 days or more in the calendar year, counting only days with a full 24 hours in China. A resident without domicile is exempt, after filing a record, on foreign-source income paid by foreign entities or individuals unless in each of the six preceding years (counted from 2019) he or she also had 183 days in China with no single absence of more than 30 days. The United States taxes its citizens and green card holders as residents wherever they live, and other individuals under the substantial presence test (183 weighted days over three years, with at least 31 in the current year). The 1984 U.S.–China Agreement has no permanent-home, vital-interests, habitual-abode or nationality tests: under Art. 4(2) the competent authorities decide a dual resident's residence by consultation, and until they do both countries may tax you as a resident, with credits under Art. 22.

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Free, no sign-up, about 3 minutes. Conclusion under U.S. law, compared with the law of China and the tax treaty.

When China treats you as a tax resident

China does not use nationality: Chinese and foreign nationals are resident if they have a domicile in China — habitual residence by reason of household registration (hukou), family or economic interests — or, without a domicile, reside in China for 183 days or more in the calendar year. Domicile is a legal standard: a person abroad temporarily for study, work, family visits or travel who returns to live in China when the reason ends keeps China as the place of habitual residence.

An individual without domicile becomes a resident individual with an aggregate of 183 days in China in the calendar year (the 183rd day included). Only days with a full 24 hours in China count — China counts over the calendar year (1 January – 31 December), like the United States — but the United States counts every day with any presence.

The «six-year rule» does not change resident status; it only decides whether foreign-source income of a resident without domicile that is paid by foreign entities or individuals is taxed in China.

You habitually reside in China by reason of household registration, family or economic interests, so you have a domicile in China. Under Art. 1 of the Individual Income Tax Law you are a Chinese resident individual taxed on your worldwide income, whatever the number of days you spent in China; tax paid abroad is credited within the limit of Art. 7.
You have no domicile in China, but you resided there for 183 days or more in the calendar year, so you are a Chinese resident individual (Art. 1). Because in each of the six preceding years you also had 183 days without a single absence of more than 30 days, all your income — from China and from abroad, including the United States — is taxable in China.
You have no domicile in China, but you resided there for 183 days or more in the calendar year, so you are a Chinese resident individual (Art. 1). Because in at least one of the six preceding years you had fewer than 183 days or a single absence of more than 30 days, your foreign-source income paid by foreign entities or individuals — for example U.S. income paid by a U.S. payer — is exempt in China after filing a record with the tax authority (Regulations Art. 4). Chinese-source income, including pay for work in China, and foreign income paid by a Chinese entity remain taxable.
You have no domicile in China, but you resided there for 183 days or more in the calendar year, so you are a Chinese resident individual (Art. 1). Whether China also taxes your foreign income depends on the six-year rule: if in each of the six preceding years (counted from 2019) you had 183 days without a single absence of more than 30 days, all income is taxable; otherwise foreign-source income paid by foreign entities or individuals is exempt after filing a record.
You resided in China for 183 days or more in the calendar year, so you are a Chinese resident individual whether or not you have a domicile there (Art. 1). With a domicile, all your income is taxable in China; without one, foreign-source income paid by foreign entities or individuals may be exempt under the six-year rule (Regulations Art. 4).

When you are a nonresident

You have no domicile in China and resided there for fewer than 183 days in the calendar year, so you are a non-resident individual (Art. 1): China taxes only your income from sources in China. Pay for work done outside China is not Chinese-source; with not more than 90 days in China, the part of pay for China work that is paid by a foreign employer and not borne by its establishment in China is exempt (Regulations Art. 5).

Where the rules of China clash with U.S. tax rules

Collision: China treats you as resident because of domicile, the U.S. because of citizenship or residence. China treats an individual with a domicile in China — habitual residence by reason of hukou, family or economic interests — as resident whatever the number of days in China; the United States taxes you as a citizen, green-card holder or substantial-presence resident. Art. 4(2) of the U.S.–China Agreement does not resolve this by tests: the competent authorities of the two countries decide by consultation. Until they do, both countries may tax you as a resident; double taxation is relieved by credit (Art. 22), and you may request the mutual agreement procedure (Art. 24). A U.S. citizen remains taxable in the U.S. as a citizen in any case.
Collision: 183 days in China while the U.S. treats you as resident. Without a domicile in China, 183 days in China in the calendar year make you a Chinese resident individual. A U.S. citizen or green-card holder remains a U.S. resident at the same time, and in the year of a move you may also meet the U.S. substantial presence test. The Agreement leaves the question to the competent authorities (Art. 4(2)); meanwhile China's six-year rule limits the Chinese tax on your foreign income, and the U.S. credits Chinese tax on Chinese income (Art. 22(2)).

What else to know

Which treaty applies: the 1984 U.S.–China Agreement — no tie-breaker tests. The Agreement signed at Beijing on 30 April 1984 (in force 21 November 1986, effective from 1 January 1987) applies; the United States is not a party to the MLI. Its residence article is unusual: Art. 4(2) has no permanent-home, centre-of-vital-interests, habitual-abode or nationality tests — if both countries treat you as resident, the competent authorities decide by consultation. Employment: Art. 14 (183 days in the calendar year); relief: Art. 22 (credit in both countries); mutual agreement procedure: Art. 24.
Calendar year in both countries — but days are counted differently. Both countries use the calendar year. China's 183-day test counts only days with a full 24 hours in China; the United States counts every day with any presence and, for the substantial presence test, also weighs days of the two prior years. The 183-day limit for salary in Art. 14(2) of the Agreement is counted in the calendar year concerned.
U.S. income of a Chinese resident without domicile: the six-year rule. If you are resident in China only under the 183-day test, China does not tax your foreign-source income paid by foreign entities or individuals — for example rent from property in the United States, interest on U.S. bank accounts, or salary for work done in the U.S. paid by a U.S. employer — unless in each of the six preceding years (counted from 2019) you had 183 days in China with no single absence of more than 30 days. The exemption requires filing a record with the competent tax authority. Pay for work done in China is Chinese-source even if a U.S. employer pays it. A U.S. citizen or resident is still taxed in the U.S. on worldwide income.
How double taxation of Chinese and U.S. income is relieved. The United States credits Chinese income tax for its citizens and residents (Art. 22(2); the U.S. foreign tax credit is covered in the U.S. section). If China taxes you as a resident, China credits U.S. income tax paid under the Agreement on income from the United States, up to the Chinese tax on that income, with the limit computed per country (Art. 22(1); Art. 7 of the IIT Law); keep the U.S. return, withholding statements and proof of payment issued by the U.S. tax authority.
Working in China while resident in the U.S.: the 183-day rule (Art. 14(2)). Pay for work physically done in China is Chinese-source wherever it is paid. If you are a U.S. resident for the purposes of the Agreement, China does not tax it only if all conditions of Art. 14(2) are met: not more than 183 days in China in aggregate in the calendar year concerned; an employer that is not resident in China; and pay not borne by a permanent establishment or fixed base of the employer in China. Chinese domestic law on its own exempts pay from a foreign employer only up to 90 days (Regulations Art. 5). Otherwise China taxes the pay for your China work days and the United States credits the Chinese tax (Art. 22(2)). If both countries treat you as resident, your treaty residence depends on the competent authorities.
Year of arrival or departure: no split year in China. China decides residence for the whole calendar year; it has no split-year rule. A U.S. citizen is taxed by the United States for the whole year regardless. Keep entry and exit records — China counts only days with a full 24 hours in China.
Social security: no U.S.–China totalization agreement. China is not on SSA's list of U.S. social security agreements, and China's reported 13 bilateral agreements do not include the United States. Contributions to U.S. Social Security (or self-employment tax) and Chinese social insurance may therefore both be due on the same work; social insurance is outside the tax Agreement.

How dual residence is resolved

If both countries treat you as a resident, Art. 4(2) of the treaty applies: Agreement between the Government of the United States of America and the Government of the People's Republic of China for the avoidance of double taxation and the prevention of tax evasion with respect to taxes on income (signed at Beijing on 30 April 1984). The tests are applied in order — permanent home, center of vital interests, habitual abode, nationality, and finally mutual agreement between the tax authorities. U.S. citizens remain taxable in the United States under the saving clause.

Terms you will come across in China

住所 (zhùsuǒ): domicile — habitual residence in China by reason of household registration, family or economic interests
户籍 (hùjí): household registration (hukou)
居民个人 (jūmín gèrén): resident individual, taxed on income from inside and outside China
非居民个人 (fēi jūmín gèrén): non-resident individual, taxed only on income from inside China
综合所得 (zōnghé suǒdé): comprehensive income — wages, personal services, author's remuneration and royalties, taxed per year at 3%–45%
境外所得 (jìngwài suǒdé): foreign-source income, declared between 1 March and 30 June of the following year

Questions

I am a U.S. citizen living in China — which country is my treaty residence?

The Agreement gives no tests to decide it. Under Art. 4(2) of the 1984 Agreement the competent authorities of the two countries determine it by consultation; until they agree, both countries may tax you as a resident, double taxation is relieved by credit (Art. 22), and you may request the mutual agreement procedure (Art. 24). In any case the United States taxes you on worldwide income as a citizen under U.S. law, and you file Form 1040 every year.

How long can I work in China for a U.S. employer before China taxes my salary?

Pay for work physically done in China is Chinese-source wherever it is paid. Chinese law on its own exempts the part paid by a foreign employer and not borne by its establishment in China only up to 90 days in the calendar year (Regulations Art. 5). If you are a U.S. resident for the purposes of the Agreement, Art. 14(2) extends this to 183 days in aggregate in the calendar year, provided the employer is not resident in China and the pay is not borne by a permanent establishment or fixed base of the employer in China.

Does China credit the U.S. tax I pay?

Yes, if China taxes you as a resident: U.S. income tax paid under the Agreement on income from the United States is credited up to the Chinese tax on that income, with the limit computed per country and any excess carried forward for at most five years (Art. 22(1); Art. 7 of the Individual Income Tax Law). You need the tax payment certificate issued by the foreign tax authority for the year concerned. The United States credits Chinese income tax for its citizens and residents (Art. 22(2); Form 1116).

Sources

Legislation and official guidance

Individual Income Tax Law of the People's Republic of China (seventh amendment of 31 August 2018), Art. 1 — An individual who has a domicile in China, or who has no domicile but resides in China for an aggregate of 183 days or more in a tax year, is a resident individual and is taxed on income from inside and outside China. An individual with neither domicile nor residence in China, or with no domicile and fewer than 183 days, is a non-resident individual taxed only on income from inside China. The tax year is the calendar year (1 January – 31 December).
Implementation Regulations of the Individual Income Tax Law (State Council Decree No. 707), Art. 2 — Having a domicile in China means habitually residing in China by reason of household registration (hukou), family or economic interests.
Provisions on Several Issues concerning the Levy of Individual Income Tax (Guoshuifa [1994] No. 89), Art. 1 — Habitual residence is a legal standard for deciding whether a taxpayer is resident or non-resident; it does not mean the place of actual residence or of residence in a particular period. A person who lives abroad for study, work, family visits or travel and must return to live in China once the reason ends has China as the place of habitual residence.
MOF/STA Announcement No. 34 of 2019 — For an individual without domicile, days of residence are the days of stay in China: a day with a full 24 hours in China counts, a shorter stay does not. If such an individual resides 183 days in a tax year and in each of the six preceding years also had 183 days with no single departure of more than 30 days, both Chinese-source and foreign-source income is taxable for that year; otherwise foreign-source income paid by foreign entities or individuals is exempt. The six years are counted from 2019 onward.
Implementation Regulations of the Individual Income Tax Law, Art. 4 — An individual without domicile who has resided in China for 183 days in each of fewer than six consecutive years is, after filing a record with the competent tax authority, exempt on foreign-source income paid by foreign entities or individuals; a single departure of more than 30 days in any year restarts the count.
Implementation Regulations of the Individual Income Tax Law, Art. 3 — Unless otherwise provided, income from services performed in China through office, employment or performance of a contract is income from sources in China, wherever it is paid.
Implementation Regulations of the Individual Income Tax Law, Art. 5 — An individual without domicile who resides in China for an aggregate of not more than 90 days in a tax year is exempt on the part of Chinese-source employment income that is paid by a foreign employer and not borne by the employer's establishment or place in China.
MOF/STA Announcement No. 3 of 2020 (individual income tax on foreign-source income) — Income from services performed outside China is foreign-source income. Foreign comprehensive and business income is combined with domestic income of the same kind; other categories are computed separately. The credit limit is computed per country (region); excess credit can be carried forward for five tax years; no credit without a qualifying tax certificate; tax spared under a treaty is treated as paid. Residents declare foreign income between 1 March and 30 June of the following year. Where the foreign tax year differs from the calendar year, the calendar year in which the foreign tax year ends is the corresponding year.
Art. 4(2) of the U.S.–China Agreement (1984)
Art. 14(2) of the U.S.–China Agreement (1984)
Art. 22 of the U.S.–China Agreement (1984) — Para. 1: China credits U.S. income tax paid under the Agreement by a resident of China on income from the United States, up to the Chinese tax computed under Chinese law on that income. Para. 2: the United States allows its residents or citizens a credit for income tax paid to China.
Art. 24 of the U.S.–China Agreement (mutual agreement procedure)
§ 7701(b)(3)(A); Treas. Reg. § 301.7701(b)-1(c)
Individual Income Tax Law of the People's Republic of China, Art. 7 — Income tax paid abroad on foreign-source income of a resident individual may be credited against the Chinese tax payable, up to the Chinese tax computed under Chinese law on that income.
Implementation Regulations of the Individual Income Tax Law, Arts 21–22 — The credit limit is computed separately for each country (region). If tax paid in a country is lower than the limit, the difference is paid in China; the excess can be credited against the unused limit for the same country in later years, for at most five years. A credit claim requires the tax payment certificate issued by the foreign tax authority for the year concerned.
SSA — U.S. international social security agreements (status)
China News Service report (republished by gmw.cn, 29 October 2025) — Since 2001 China has signed bilateral social security agreements with 13 countries: Germany, Korea, Denmark, Finland, Canada, Switzerland, the Netherlands, France, Spain, Luxembourg, Japan, Serbia and Kyrgyzstan.
Individual Income Tax Law, Art. 3 and rate schedules — Comprehensive income: progressive rates of 3% to 45% (annual taxable income up to ¥36,000 — 3%; ¥36,000–144,000 — 10%; ¥144,000–300,000 — 20%; ¥300,000–420,000 — 25%; ¥420,000–660,000 — 30%; ¥660,000–960,000 — 35%; above ¥960,000 — 45%). Business income: 5% to 35%. Interest, dividends, rental income, gains from transfer of property and incidental income: 20%.
Individual Income Tax Law, Art. 6 — Taxable comprehensive income of a resident individual: annual income less ¥60,000 and special, special additional and other deductions. Non-resident individual: monthly wages less ¥5,000; remuneration for personal services, author's remuneration and royalties per payment.
Individual Income Tax Law, Art. 7 — A resident individual may credit individual income tax paid abroad on income from outside China against the Chinese tax payable, but not beyond the Chinese tax on that foreign income computed under the Law.
Individual Income Tax Law, Arts 10, 11 and 13 — Filing is required, among other cases, for foreign-source income and for non-resident individuals with wages from two or more sources in China. Comprehensive income is withheld in advance monthly or per payment and reconciled between 1 March and 30 June of the following year; foreign-source income is declared between 1 March and 30 June of the following year; tax on a non-resident's wages is withheld by the payer with no annual reconciliation.

Updated 2026-11-04. The result is for information only and is not tax or legal advice. Tax authorities and courts may interpret the rules differently, including because of circumstances not covered here, and the law changes. Consult a qualified adviser before making decisions.

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