Will foreign talents be taxed twice after returning home?
Posted: Tue Jul 06, 2021 11:21 pm
It’s an international practice to offer a foreign income tax credit, and China set special provisions to avoid double taxation in the tax treaties (arrangements) signed with other countries.
For example, according to the provisions on avoiding double taxation and preventing tax evasion on incomes between China and Singapore, the tax paid by Singapore residents for incomes obtained from China can be deducted from the tax payable for their incomes obtained from
Singapore.
The specific calculation of the credit is implemented in accordance with the tax laws of each country (region). Still, the tax credit generally does not exceed the taxable amount for the resident’s overseas income calculated in accordance with the domestic tax law
For example, according to the provisions on avoiding double taxation and preventing tax evasion on incomes between China and Singapore, the tax paid by Singapore residents for incomes obtained from China can be deducted from the tax payable for their incomes obtained from
Singapore.
The specific calculation of the credit is implemented in accordance with the tax laws of each country (region). Still, the tax credit generally does not exceed the taxable amount for the resident’s overseas income calculated in accordance with the domestic tax law