Certain Double Taxation Agreements (DTAs) of China include a provision on researchers and teachers under which payments are exempt from tax in China. If researchers and teachers are received by a resident individual of a contracting country who is temporarily present in China for conducting research and teaching at an educational or research institution.
On 29 December 2016, the State Administration of Taxation published an announcement concerning guidance on the explanation of educational institutions in accordance with the treaty provision and revising an administrative process for the treaty benefit entitlement.
In accordance with the announcement, preschools, elementary schools, middle schools, universities and special educational institutions are qualified for the treaty benefit along with training centers are not considered schools hence they do not entitled to get the treaty benefit. This announcement generally applies from the date of its issuance.
