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Answer Home >> Tax liability for an American expat living
zhang Floor Admin

Post By:2009-5-10 11:08:00

 

 

Hi,

My wife has a job based in Beijing. But my job is based in California. My wife and I are living in Beijing, and I am working from a home office in Beijing for my California based company, and work on US west coast hours. I am planning on paying US income tax as if I never left the US. But my question is, do I have any tax liability to the Chinese government for living in China and working for my US job? If so, would I avoid that Chinese tax liability if I stay out of China for more than 182 days? Thanks.

 

Answer  
liao 1 Floor
Post By:2009-5-17 11:09:00
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As a citizen of a country with a dual tax agreement with China, if you’re in China for more than 182 days you will be expected to pay some element of tax in China. This is regardless of whether your employer is in China or USA.

You aren’t taxable on worldwide income until you’ve been in China for 5 years. Unless during that 5 year period you are out of the country for more than 90 days in any one calendar year OR 30 consecutive days in any one trip. If you have been out of the country for either of these periods then your 5 year restriction will reset.
Answer  
apple 2 Floor
Post By:2009-5-17 11:08:00
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As with anything, there is the practice, and there are the statutes.
Practice, and practically - live as a non - working spouse in Beijing, and do your California business. If you residence in Beijing is under yoru wife’s work and residence , then your activities while living in Beijing aren’t something Beijing is going to look into. 
Stay off the radar screen by just being a non working spouse living in Beijing. Don’t ask, don’t tell. 
Whether you qualify for the overseas resident status for your California income is another question. You should be able to….I worked for Silicone Valley firms, living in China operations, and my income, while filed with Sacramento fell qualified.
Statutory, I believe China will take the position as the US does that you are obliged to them while living in China for your worldwide income.
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Answer:Tax liability for an American expat living  

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