DoubleTaxationUnited States – China tax treaty: residence, 183 days, rates
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)
- Signed: 1984-04-30
- In force since: 1986-11-21
- Official text
If both countries treat you as resident
The treaty sets no tie-breaker steps: if both countries treat you as resident, the tax authorities settle it by mutual agreement.
- Where by reason of paragraph 1 an individual is a resident of both Contracting States, the competent authorities of the two States shall determine through consultation the State of which the individual shall be deemed to be a resident for the purposes of the Agreement. Art. 4(2) of the U.S.–China Agreement (1984)
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the calendar year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 14(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 183 days in the calendar year. | Art. 7, Art. 13 |
| Pension | Only the country of residence. | Art. 17(1) |
| State pension (social security) | Only the source country (for pensions, the paying country). | Art. 17(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 18 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 18 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 10%; the country of residence relieves double taxation. | Art. 9(2) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 10(2) |
| Royalties (copyright, licences) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 12 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 21(3) |
How double taxation is relieved
- China: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 22(1)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 22(2)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.