Year-End in China: Bonuses, Tax Forms and Goodbyes

TL;DR — the 30-second version: Year-end in a Chinese company runs on three clocks. Bonuses land in the last two weeks before Spring Festival (February 6, 2027), not December. The tax app’s annual settlement window runs March 1 to June 30, 2027 — where refunds and top-ups happen. Leaving? 30 days’ written notice is the law. And your bonus can be taxed two ways, one of them guaranteed only until December 31, 2027.

The short answer

The short answer: December is for paperwork and announcements, late January is when the bonus money actually lands, and March to June is when the state settles your tax bill for the year. What nobody told us: your year-end bonus is not taxed automatically, the way salary is. You choose between two methods — and the usually-cheaper one is only guaranteed until December 31, 2027.

When the bonus lands

Most companies pay in the last week or two before Spring Festival. For 2027, that means early February, since the holiday starts February 6. Some pay in December so the money is in before anyone heads home.

Know the difference between the two bonus words. The thirteenth-month salary (shisanxin, “thirteenth salary”) is usually in your contract and paid in December — essentially salary. The year-end bonus (nianzhongjiang, “year-end award”) is discretionary: same company, same role, very different numbers depending on your rating and the company’s year. We budget on the shisanxin and treat the nianzhongjiang as weather.

The tax choice that expires in 2027

Here is the part nobody explains. Your annual bonus can be taxed on its own, on a special schedule, or merged into the salary of the month you receive it. The separate schedule is usually kinder to bigger bonuses, and HR cannot pick it for you — you decide, usually in December.

The catch: it is a temporary policy. The Ministry of Finance and the State Taxation Administration renewed the separate-bonus rule through December 31, 2027 (Announcement 2023 No. 30), and nobody knows if it gets renewed again. If your bonus is paid in early 2027, decide with that deadline in mind.

Which one wins depends on your numbers. The tax app compares both side by side in ten minutes — and they rarely match.

The app appointment nobody reminds you about

China withholds tax from every paycheck, so most of the year you do nothing. But every spring you are supposed to reconcile the whole year: the annual settlement runs March 1 to June 30 in the GeRen SuoDeShui app (the official “individual income tax” app, run by the tax authority). Refunds usually land within weeks; owing money means paying by June 30 or late fees start.

Also, in late November or December, the app asks you to reconfirm deductions for next year — rent, mortgage, children’s education, elderly care, all open to foreigners too. Doing nothing just rolls last year’s choices over, but this is the moment to add the housing-rent deduction (zufang jin, “rent deduction”) you forgot in year one, like we did.

Leaving at year-end: our checklist

Notice: the Labor Contract Law gives your employer 30 days if you resign (3 days during probation). HR will not touch your clearance until it is in writing.

Unused annual leave: the regulation promises 300% of your daily pay for days you did not take. Real offices often negotiate it down — put your number in writing before signing.

Housing fund (gongjijin, “housing provident fund”): you can withdraw the full balance once your account is closed for leaving the country. HR handles the form; the money usually lands within two weeks.

Pension: leaving China for good, you can withdraw the personal-account share you funded (8% of your recorded wage). The employer’s contribution stays in the pool. City rules vary, so ask HR.

The phone trap: your bank apps, WeChat, and Alipay stay locked to your Chinese number. Transfer balances out first, keep the SIM on the cheapest data plan until every transfer clears. We have watched people miss refunds because the number died mid-process.

Quick answers

Q: When do year-end bonuses get paid in China? A: Usually the last two weeks before Spring Festival — early February for 2027 — though some companies pay in December.

Q: Can I choose how my bonus is taxed? A: Yes. The separate-bonus schedule or merging it with salary; the separate option is guaranteed only through December 31, 2027 (Announcement 2023 No. 30).

Q: Do I have to file a tax return as a foreigner in China? A: Your employer withholds monthly. The annual settlement window is March 1 to June 30 in the GeRen SuoDeShui app; file if the app says you owe or can claim a refund.

Q: How much notice do I give when resigning in China? A: 30 days in writing per the Labor Contract Law (3 days during probation).

Official sources

State Taxation Administration: www.chinatax.gov.cn · MOF/STA Announcement 2023 No. 30 (annual-bonus separate taxation through 2027) · Labor Contract Law, Article 37 · 2027 public holiday schedule (Spring Festival: February 6).

Editorial review: EasternReset Team · Snapshot: 2026-10. Found an error? Tell us.