案例分析题

(b) State, giving reasons, whether the following persons will be subject to individual income tax in China on their worldwide income in 2014:

问答题

Ms Wang has her household in Xiamen and holds a China identity card. She has been studying in Australia since 2010 and has not returned to China for the last six years, including in 2014.

【正确答案】

Ms Wang has a domicile in China. She is habitually resident in China and only temporarily stayed outside China due to studying. At the end of her studying, she will go back to China. She is subject to China tax on a worldwide basis.

【答案解析】
问答题

Mr Beth is a US citizen, who has lived in China working for a non-government organisation since 2010. He has not travelled outside China for the last six years, including in 2014.

【正确答案】

Mr Beth does not have a China domicile but he has stayed in China for over five full years. He stayed in China for the full year in 2014. Hence, he is subject to China tax on a worldwide basis in 2014.

【答案解析】
问答题

Ms Ruth is an Australian citizen. She travelled to China and stayed in China for a total of 250 days in 2014.

【正确答案】

Ms Ruth does not have a China domicile and she did not stay in China for a full year. She is not subject to China tax on a worldwide basis in 2014 [she is only subject to China tax on any income sourced from China].

【答案解析】