Employment income
Australian tax residents living in China pay Chinese IIT on China-sourced employment income. Australia taxes residents on worldwide income but provides a foreign income tax offset (FITO) for Chinese IIT paid, preventing double taxation in most circumstances. The 183-day test applies for determining Australia tax residency in combination with domicile-based rules.
Pension and retirement income
[VERIFY: source needed — May 2026] Australian superannuation fund distributions received in China may be subject to Chinese IIT depending on the nature of the payment and treaty provisions. Confirm with a dual-qualified adviser before drawing superannuation while China resident.
Key notes for Australia nationals in China
The China-Australia treaty was amended by protocol. Australian nationals on long-term China postings should monitor the six-year rule threshold; the interaction with Australia's residency rules can create periods of potential double-residency.
How to use this information
This guide provides a starting point. For practical application:
- Locate the official treaty text (published by both countries' tax authorities and by the IBFD or PwC's worldwide tax summaries).
- Identify a tax adviser who holds qualifications or active practice experience in both Australia tax law and Chinese IIT.
- Bring your specific income sources, residency timeline, and family situation to the adviser — treaty application is always fact-specific.