China – USA J-1 Tax Treaty (Teachers, Professors and Researchers)

China – USA J-1 Tax Treaty (Teachers, Professors and Researchers)

Article 19 of the US-China Tax Treaty provides that a resident of China who goes to the USA for the primary purpose of teaching, lecturing, or conducting research at an accredited educational institution or scientific research institution in USA will be exempt from tax in United States on the remuneration for such activities for a period of up to three (3) years in the aggregate.

Thus, for example, a resident of China who visits the United States to conduct research at the john Hopkins medical school for two (2) years, 2017 and 2018, returns to China for a year, and then comes back for another year of research at john Hopkins medical school in 2020 would be exempt from tax on his john Hopkins medical school remuneration for each of the three years.

However, if he stayed at john Hopkins medical school in 2021 or returned at a later time the exemption would no longer be available.

The exemption provided in this article is not available if the research is not undertaken in the public interest, but for the private gain of a specific person or persons.

***Disclaimer: I am a tax accountant and a CPA , but I am not your accountant or advocate (Unless you have signed up to my services). This communication is not intended as tax advice, and no tax accountant -client relationship results**

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