New Tax Resident Certificate ： Benefits for Foreigners

  

Source: OT-Team(G), 中国网

  Two Croatian taxpayers recently became some of the first foreigners to receive the newly updated Chinese Tax Resident Certificate at the Yanta District Tax Bureau in Xi'an, according to local tax authorities.

The two individuals have lived and worked in Xi'an for several years and meet the criteria for tax residency under China's Individual Income Tax Law. They applied for the certificate to support tax exemption claims on their income in Croatia. Guided by staff from the Yanta District Tax Bureau, they submitted their applications through the Electronic Tax Bureau, uploading documents such as passports, work visas, and rental agreements. After a quick on-site review, the application was processed and approved on the spot.

The Chinese Tax Resident Certificate is an essential document for individuals and companies seeking to prove their tax residency in China when dealing with foreign tax authorities. Often referred to as a "tax passport," it is commonly used to claim benefits under tax treaties and avoid double taxation. As China continues to deepen international cooperation and expand global business ties, more foreign nationals and enterprises are applying for this certificate to access treaty benefits.

The new version of the certificate, officially launched on April 1 through Announcement No. 4 [2025] from the State Taxation Administration, has broadened its scope. In addition to treaty-related uses, it can now support non-treaty purposes such as cross-border VAT verification and overseas bank account applications. It also includes enhanced details like the taxpayer identification number, and allows for optional remarks such as partnership status. The requirement for a signature from the head of the tax authority has been removed for streamlined processing.

Individuals or companies may apply for the certificate for any calendar year in which they qualify as Chinese tax residents. Applications can be submitted fully online, with an option for electronic delivery, or handled in person at a local tax office for a physical copy.

To improve user experience, Xi'an tax authorities have introduced multilingual service counters at tax offices across the city, simplified application materials, and shortened processing times. If a taxpayer's residency status can be independently verified by the tax bureau, the approval process can now be completed in as little as seven working days—down from ten under the previous system.