Sending Money Home: Salary Remittance and FX Rules for Foreigners

China Field Notes · by Daona · 11 min read

China manages foreign exchange more closely than most economies, and for foreigners that sometimes becomes a myth: that money earned here is "stuck". It is not. The rules expressly allow foreign individuals to convert lawful RMB income and send it abroad. The bank needs to see where the money came from and that tax has been paid.

This issue covers the rules, documents, channels, the 2026 identity checks, tax points, what not to do and a monthly plan. Bank accounts: Issue 27. Tax residency: Issue 09. Company profits: Issue 15.

The framework is the Regulations on Foreign Exchange Administration (外汇管理条例), the PBOC's Measures for the Administration of Individual Foreign Exchange (个人外汇管理办法) and SAFE's Implementing Rules (个人外汇管理办法实施细则). The State Administration of Foreign Exchange (国家外汇管理局, SAFE) sets the rules; banks apply them. The rules separate domestic individuals (境内个人) — broadly Chinese citizens with a resident ID card — from foreign individuals (境外个人), including foreign nationals and residents of Hong Kong, Macao and Taiwan.

Repeat transfers are easier. Under SAFE's 2021 notice (汇发〔2021〕13号), a foreigner working in China who returns to the same bank during the labour contract can be spared resubmitting documents already reviewed (marked 便利化薪酬购汇). Beijing, Shanghai and Shaanxi have piloted online salary purchases for qualifying foreign talent, and a 2025 SAFE measure lets prudent banks set document-free amounts for foreign staff of certain qualifying enterprises. Ask your bank what it offers.

The tax payment record has largely replaced the old paper certificate (完税证明). Generate it in the Individual Income Tax app (个人所得税 App) or the electronic tax bureau. Name and passport number must match your bank file exactly — including after a passport renewal. For non-salary income, bring the contract and proof of tax.

· Bank wire to your own account (境外汇款 / 电汇). Buy and send in one step. Costs: the bank's fee and cable charge, intermediary deductions and the exchange spread. Ask who bears charges and what the rate is.

· Hong Kong and other offshore accounts. A mainland-to-Hong Kong transfer needs the same documents; opening the account means meeting the Hong Kong bank's own requirements, often in person.

· Licensed remittance services on some corridors: check the China licence, that funds go to your own account, and that documents are the same in substance.

· Cash: over RMB 20,000 or US$5,000 equivalent in foreign currency must be declared at customs. Not a practical salary route.

From 1 January 2026, the Measures on Customer Due Diligence and Preservation of Customer Identity Information and Transaction Records (金融机构客户尽职调查和客户身份资料及交易记录保存管理办法), issued by the PBOC, NFRA and CSRC, require sending institutions to record sender and recipient names, accounts and addresses and pass the sender's details on. For a single outbound transfer of RMB 5,000 or US$1,000 equivalent or more, the institution must verify the sender's information; below that, it must still act on suspicion.

Expect closer identity checks — sometimes face recognition or a call-back — and questions on purpose. Update a renewed passport, new permit or address with the bank before the next transfer, not after it is held.

· Salary: withheld monthly; tax residents may need the annual reconciliation (年度汇算), 1 March–30 June (Issue 09).

· Dividends: since 1 September 2026, under MOF/STA Announcement 2026 No. 27 (财政部 税务总局公告2026年第27号), dividends foreign individuals receive from foreign-invested enterprises are taxed at 20%, withheld by the payer; treaty relief depends on the treaty (Issue 15).

· Leaving China: settle outstanding tax and keep records for your last transfer and your home return.

· Using other people's quotas or splitting transfers to avoid scrutiny — a violation for everyone involved.

· Unlicensed channels and underground banking — illegal; accounts can be frozen and funds lost.

· Mismatched purposes — declaring one thing and doing another causes problems on later review. The lawful route works.

A tax-resident foreign manager earns ¥40,000 a month gross.

The manager keeps ¥14,910 for living costs and sends ¥16,000 a month. Assumed: ¥200 Chinese bank charges and US$20 intermediary and receiving charges per transfer; ¥7.10 per US$.

Illustrative. Contributions, fees and the rate are assumptions; tax shown before special additional deductions, and cumulative withholding makes monthly tax vary.

Fixed charges favour fewer, larger transfers; rate movements and your cash needs may favour regular ones. Each transfer must be covered by income and tax records.

Build the file once — passport, permit, contract, payslips, tax record — and keep it current.

Use the same bank. Repeat salary purchases are easier under the 2021 notice.

Send to your own account. Own name at both ends avoids most questions.

Keep the bank's records current after any passport or permit change.

Ask before you assume. Practice differs between banks and cities.

Use licensed professionals for the rest. Daona is not a bank or a tax firm. We coordinate and make introductions to banks and licensed tax professionals; their fees and any government fees are settled by the client directly at cost.

"Foreigners can only send US$50,000 a year." That quota governs domestic individuals; foreigners' salary purchases go on documents.

"Money earned in China is stuck." Lawful, taxed income can be remitted.

"A friend can buy dollars for me." A violation for both of you.

"Small transfers avoid the rules." Verification starts at RMB 5,000 / US$1,000, and splitting is itself a red flag.

"Dividends from my own WFOE are tax-free." Not since 1 September 2026.

Rules as of October 2026. This column provides general information, not legal, tax or financial advice. Foreign exchange transactions are handled by banks under SAFE rules, and bank practice varies; confirm requirements with your bank. Tax matters should be confirmed with the tax authority or a licensed tax professional. Bank charges and licensed firms' fees are settled by the client at cost.

China Field Notes · by Daona