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
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.