China's Individual Income Tax (IIT) system, reformed significantly in 2019, requires most taxpayers — including foreign nationals with taxable income in China — to file an annual tax settlement (汇算清缴, huìsuàn qīngjiǎo) between 1 March and 30 June each year for the previous tax year. For many employed expatriates whose sole income source is their Chinese salary, tax is withheld monthly by the employer's payroll system, and the annual settlement merely confirms whether a refund or additional payment is due.
The Chinese tax authority (国家税务总局, State Taxation Administration) provides a mobile app called 个人所得税 (Gèrén Suǒdéshuì, Individual Income Tax) for iOS and Android that allows individual taxpayers to access their pre-filled annual settlement, add additional deductions, and submit the return online. The app interface is primarily in Chinese, which creates a language barrier for many expatriates.
Key items that reduce IIT liability for expatriates include: the standard deduction (¥5,000 per month as of 2026); additional specific deductions for children's education, mortgage interest, elderly care expenses, and continuing education; and, under transitional provisions that have been extended several times, certain allowances for housing rental, children's international school fees, and home leave travel may still be available for expatriates meeting specific criteria.
When self-filing is appropriate: an expatriate with a single Chinese employer, no overseas income, no significant investments, and standard deductions only can often manage the annual settlement through the app with bilingual assistance. When professional help is needed: multiple income sources, overseas income potentially subject to Chinese IIT, stock options or equity compensation, tax treaty applications, and first-year or final-year residency computations all benefit from professional review.
The annual settlement deadline is 30 June. Late filing incurs daily interest penalties.