Understanding Foreign Currency Transfers for Expats in Chin

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From time to time, we receive inquiries from our subscribers asking questions such as, "Is it true that there's a limit on how much of my salary I can send back to my home country?" or "Can I only send $50,000 USD out of China each year?"

There seems to be some confusion here, so let's clarify.

The so-called limit of "50,000USDperyear"applies only to Chinese citizens. This means that each Chinese individual is allowed to purchase or sell up to 50,000USD per year" applies only to Chinese citizens. This means that each Chinese individual is allowed to purchase or sell up to 50,000 USD worth of foreign currency annually.

For foreigners working in China, there is no limit on the amount of salary they can transfer overseas, provided they have paid their individual income tax in accordance with relevant tax laws. Such transfers are considered non-commercial foreign exchange transactions under the current account, which includes categories such as outbound tourism, study abroad, business trips, non-investment insurance, consulting services, medical expenses, settlements, and family support.

What Documents Do You Need to Provide?

There are no standardized rules, and it's highly recommended to contact your local bank for specific requirements. However, the following list of documents provided by the Bank of China can serve as a general guide:

1.Employment Contract: A copy of the employment contract between you and your employer.

2.Salary Statement: Bank statements showing your salary payments.

3.Tax Certification: Documentation from the tax office confirming that you have paid your individual income tax.

4.Income Statement: A statement from your employer detailing your earnings.    

5.Work Permit Copy: A copy of your valid work permit.

These documents are typically required to ensure compliance with financial regulations and to facilitate the transfer process smoothly. Always consult with your bank for the most accurate and up-to-date information.

Related provisions in Administrative Rules on Individual's Foreign Exchange

Article 13:  A non-domestic individual can convertlegitimate renminbi income obtained in Chinaunder the current account into foreign exchange and remit abroad at a bank byshowing valid identity documents and relevant documents.

Article 38:(3)  Non-business foreign exchange under the current account refers to foreign exchange under currentaccount items other than trade.