Employment income
Employment income is generally taxable in the country where the employment is exercised. UK residents working in China are taxable in China on their China employment income. The treaty provides a credit mechanism to avoid double taxation — the UK taxes the global income of UK residents but credits Chinese IIT paid.
Pension and retirement income
UK state pension and private pension income received by a UK national resident in China may be taxable in either or both countries depending on the nature of the pension and specific treaty provisions. Professional advice is recommended.
Key notes for United Kingdom nationals in China
The China-UK treaty is one of the older treaties and has not been updated to reflect either country's modern tax law. The interaction between the treaty and China's six-year rule, and between the treaty and the UK's worldwide taxation of residents, requires specialist advice for long-term China-based UK nationals.
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 United Kingdom tax law and Chinese IIT.
- Bring your specific income sources, residency timeline, and family situation to the adviser — treaty application is always fact-specific.