January 31 2020

MOF and STA Unveil Individual Income Tax Policies for Overseas Income

Announcement by Ministry of Finance (MOF) and State Administration of Taxation (SAT)

The Ministry of Finance and the State Taxation Administration recently issued the Announcement about Individual Income Tax Policies for Overseas Income.

According to the announcement, if residents get income from foreign countries, the income should be combined with domestic income to calculate taxable income; business income from foreign countries should also be combined with domestic business income to calculate taxable income; losses incurred in a country must not be used to offset taxable income in China or other countries or regions, but can be used to offset taxable income for the same country or region in the following years. The announcement applies to tax settlement in 2019 and afterwards.