China does not currently require all foreign nationals to obtain a formal 'tax clearance certificate' as a condition of exit in the way that some countries do. However, there are reporting obligations and situations where proactive tax clearance is advisable or effectively required.
For employed expatriates leaving China during the tax year: the annual IIT settlement (汇算清缴) normally filed between March and June covers the previous year. If an expatriate departs mid-year, outstanding IIT for the current year's income must be settled before departure. The employer's payroll system should handle monthly withholding, but any under-withholding from equity compensation, bonuses, or other irregular income should be reconciled.
For senior company officers and directors: China's IIT rules include provisions requiring individuals in certain positions (董事, dǒngshì, and supervisors) who are departing China to proactively settle outstanding tax obligations before emigrating, as their departure may attract specific scrutiny.
For individuals with significant assets in China: those with significant investment income, rental income from Chinese property, or business interests should ensure that any outstanding tax liabilities on these sources are settled. While no formal exit tax exists in China's tax code, the STA has mechanisms to pursue outstanding obligations even after departure.
Practical steps before departure: confirm with the employer's payroll team that all IIT has been withheld correctly for the year to date; file any required annual settlement for prior years; ensure social insurance contributions have been fully settled; and if seeking a pension contribution refund, initiate the application before closing the Chinese bank account.
Obtaining a formal letter from a Chinese tax adviser confirming all known obligations are settled provides peace of mind for future interactions with Chinese tax authorities.