5.3 How to check if you need to pay tax in China

If you are a Chinese tax resident, you’ll need to pay Chinese income tax on your worldwide income including earnings through Tiger, regardless of where you live.

However, as there is a Double tax agreement (DTA) between New Zealand and China, you will usually be allowed a tax credit to avoid paying tax twice on the same income.

You will need to find out your residency status both in New Zealand and China to figure out how DTAs apply to your income.

You can be a tax resident in both New Zealand and China at the same time.

To check if you are Chinese tax resident, individuals who have domicile in China, or though without domicile but have resided for one year or more in China are deemed to be residents in China generally. One year means 365 days in a tax year. The days on a temporary trip away from China, including a single trip not exceeding 30 days or combined trips not exceeding 90 days, shall not be deducted. Habitual residence is a legal criterion whereby a taxpayer is defined and it does not refer to actual residence or residence of an individual for a particular period of time. For example, China is the habitual residence for an individual who should come back to reside in China after staying, working, visiting families and touring in a place other than China.

To check if you are a New Zealand tax resident, please refer to (2.1).



Disclaimer: The content of this page is for educational purposes only. It is designed to help you understand the potential tax obligations that may apply to you when investing in financial products. Tiger Broker does not provide any advice, including tax advice, and is not responsible for providing any guidance, opinions, or suggestions about tax for you. If you have any questions about your personal circumstances and tax obligation, we suggest you contact your tax advisor directly for more information.

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