China IIT for employment income: progressive 3-45% annual. Foreign employees are taxed on China-source income; the 6-year rule extends worldwide taxation for those living in China 183+ days. Social insurance enrollment generally mandatory for mainland hires.
Framework: (1) Resident (183+ days in a year): worldwide employment income taxable; the 'six-year rule' — foreigners residing 183+ days for six consecutive years can (with a single-leave-of-31-days break or filing) keep offshore income out of scope. (2) Non-resident: China-source days-based allocation. (3) Rates: 3%/10%/20%/25%/30%/35%/45% progressive on monthly bands (annualized 36k-960k+ brackets). (4) Deductions: standard 5,000 RMB/month plus social insurance contributions; the old 'foreigner allowances' (housing, schooling) are being transitioned into standard deductions through 2027 — choose the better option annually. (5) Social insurance: mainland employees mandatory; foreign employees mandatory in most cities for the five insurances (bilateral totalization treaties with 10+ countries can exempt pension). (6) Annual reconciliation (March-June) applies to residents.
Related questions
WFOE vs Joint Venture vs Rep Office: Which China Entity? FDI Registration Process in China: Step by Step China Negative List 2026: Where Can Foreigners Invest?Establishing your China presence?
Zhonghui Consulting handles FDI registration, WFOE setup, banking, accounting, and foreign-staff compliance end-to-end — fixed fees, English-speaking team, ICPA-licensed delivery.
Get a Free Market-Entry Diagnosis →