So, foreign-invested enterprises that remit profits distributed to foreign investors abroad are not required to pay tax.
II. For machinery, equipment, raw materials and other materials imported by foreign-invested enterprises, import tariff, value-added tax, consumption tax and so on are generally levied in accordance with the provisions of the tax law, and there is no preferential policy. However, for foreign-invested enterprises to buy domestic equipment, meet the prescribed conditions, its investment in the purchase of domestic equipment can be in accordance with the prescribed method of credit enterprise income tax.
Third, according to the provisions of the Individual Income Tax Law and its related regulations, individuals who do not have a residence in China shall decide whether to pay individual income tax on their wages and salaries according to the length of their continuous or cumulative period of residence and work (hereinafter referred to as: the period of residence and work) within the territory of China:
1. In a tax year, the period of residence and work does not exceed 90 days or the period of residence and work specified in the tax agreement. Individuals who reside and work for a period of not more than 90 days in a tax year, or not more than 183 days in the period specified in the tax treaty,
- are exempted from filing an Individual Income Tax return on wages and salaries paid by an employer outside of China and not borne by the employer's organization in China.
- Salaries and wages paid by an enterprise or an individual employer in China or borne by an organization in China that are sourced in China shall be declared and paid as individual income tax.
- Individual income tax is not levied on wages and salaries sourced outside China.
2. Individuals who have resided and worked for a period of more than 90 days or more than 183 days out of the period stipulated in the tax treaty, but not more than one year in a taxable year,
- Individual income tax shall be declared and paid on wages and salaries sourced from sources outside of China, regardless of whether the wages and salaries are paid by employers outside of China or borne by organizations outside of China.
- For wages and salaries derived from sources within China, whether paid by employers outside China or by organizations outside China, they should be declared for individual income tax.
- No individual income tax is levied on wages and salaries sourced outside China.
3. Individuals who have resided and worked for one year, but less than five years,
- shall declare and pay individual income tax on wages and salaries sourced from within China, regardless of whether they are paid by an employer outside of China or by an organization outside of China.
- Wages and salaries paid by enterprises or individual employers in China that are sourced outside China should be declared for individual income tax.
- Salaries and wages paid by enterprises or individual employers in China that are sourced outside China are exempted from individual income tax.
4. Individuals who have resided and worked for a period of 5 years or more,
- For wages and salaries sourced from within China, they should declare and pay individual income tax.
- Individuals should declare and pay Individual Income Tax on wages and salaries derived from sources outside China.
In the above provisions:
1. Wages and salaries derived from within the territory of China refer to the wages and salaries actually earned by an individual during the period of work within the territory of China, regardless of whether the wages and salaries are paid by an enterprise or an individual employer within or outside the territory of China, they are all wages and salaries derived from within the territory of China.
2. Salary and wage income derived from outside China refers to salary and wage income derived from outside China when an individual actually works outside China, regardless of whether the salary and wage is paid by an enterprise or an individual employer inside or outside China.
3. Residence period of one year means that the individual resides in China for 365 days in a tax year (calendar year, the same hereinafter), and no deduction is made for the number of days of temporary departure if the individual has left the country temporarily. Temporary departure refers to a single departure of not more than 30 days or multiple departures of not more than 90 days in a tax year.
4. A period of residence of one year or more means that one year of residence has been completed in each of the tax years within the period.
Therefore, the wages and salaries received by a foreigner working in China shall be subject to individual income tax in accordance with the above provisions. The payment of personal income tax for this person is the same as the payment of personal income tax for the salary and wages of Chinese citizens in general, and the withholding agent (i.e. your company) will declare the tax within the 7th day of the following month.