Introduction
In international taxation, the number "183 days" frequently appears. In China, it is used for determining tax residency, in the United States for the Substantial Presence Test, and in tax treaties with Japan and other countries for exemptions for short-term stay employees, among various other contexts.
However, even with the same "183 days," the meaning and method of counting days are not the same. It is particularly important for foreigners working in China and employees frequently traveling between China and Japan or the United States to avoid confusing the days of stay under domestic law and tax treaties.
First, the conclusion—how to count the date of entry and exit
| System | Date of Entry | Date of Exit | Basic Concept |
|---|---|---|---|
| Chinese Domestic Law | Generally not included | Generally not included | Only count as one day if stayed in China for 24 hours |
| U.S. SPT | Generally included | Generally included | Count as one day if present in the U.S. for any part of the day |
| Japanese Domestic Law | ― | ― | There is no general 183-day residency standard |
| General Tax Treaties | Generally included | Generally included | Calculated based on physical presence |
In other words, even for the same stay of "entry on January 1 and exit on July 2," the number of days calculated may differ between Chinese domestic law and tax treaties.
Chinese domestic law - Only the days spent for a full 24 hours are counted as one day.
According to China's Individual Income Tax Law, for individuals without a residence in China, if they reside in China for a cumulative total of more than 183 days in a tax year, they are classified as "resident individuals"; if less than 183 days, they are classified as "non-resident individuals." The Chinese tax year runs from January 1 to December 31.
Regarding the calculation of these 183 days, China has a unique "24-hour rule." For individuals without a residence, if they stay in China for a full 24 hours on a given day, that day is counted as one day; however, if it is less than 24 hours, it is not included in the count of days residing in China.
Therefore, the usual entry date is spent outside of China before entry, and the exit date is spent outside after departure, so both the entry date and exit date are generally excluded from the count of days residing in China under domestic law.
For example, if one enters China on January 1, 2026, and exits on July 2, the calendar shows a period of 183 days, but under Chinese domestic law, it is generally counted as 181 days from January 2 to July 1.
In China, there is a "6-year rule" that follows the 183-day determination.
The purpose of confirming the 183 days in China is not only to determine whether one is a resident individual or a non-resident individual for that year. For individuals without a residence, the so-called "6-year rule" also becomes important in relation to the taxation scope of foreign-source income.
Even if an individual without a residence stays in China for more than 183 days in a given year, if they stayed in China for less than 183 days in any of the past six years, or if there is a continuous exit exceeding 30 days within the year they stayed for 183 days or more, there may be room for exemption from tax in China on certain foreign-source and foreign-paid income.
Therefore, records of entry and exit in China are not solely used for determining the 183 days for that year. Continuously managing the annual 183-day determination and the presence or absence of continuous exits exceeding 30 days is important for foreign expatriates' individual income tax in China.
United States - If present in the U.S. for even part of a day, it is generally counted as one day.
In the United States, one of the criteria for determining whether a foreign individual becomes a resident for tax purposes is the Substantial Presence Test (SPT).
Under the SPT, it is assumed that the individual has stayed in the U.S. for at least 31 days in the current year, and the total is calculated by adding 100% of the days stayed in the current year, one-third of the days stayed in the previous year, and one-sixth of the days stayed in the year before that, to determine if the total is 183 days or more.
In the United States, as a general rule, if an individual is physically present in the U.S. for even part of a day, it is treated as one day. Therefore, usually the entry date is counted as one day, and the exit date is also counted as one day. Thus, it is calculated.
However, there may be days excluded from the SPT count, such as days spent passing through the U.S. for less than 24 hours while traveling between two locations abroad, certain periods for students, teachers, etc., who qualify as "exempt individuals," and stays for certain medical reasons.
Japan - There is no general 183-day rule under domestic law.
Regarding Japan, it may be understood that "staying in Japan for more than 183 days makes one a tax resident," but there is no such general 183-day resident standard in Japan's income tax law.
In Japan, individuals who have a "residence" in the country or have continuously had a "domicile" for more than one year up to the present are considered residents. "Residence" means the base of life and is determined based on objective facts such as housing, occupation, family, and assets.
Therefore, even if you stay in Japan for less than 183 days, you may be recognized as a resident if your main place of living is in Japan. Conversely, it is not possible to determine resident or non-resident status under Japanese domestic law based solely on the number "183 days."
Under tax treaties, the 183 days—both the entry and exit dates are generally included.
Separate from domestic law, the 183-day standard is also widely used in tax treaties for short-term stay exemptions for employment income.
In general tax treaties, in addition to staying in the host country for the specified 183 days or less, if the salary is paid by an employer who is not a resident of the host country and the salary is not borne by a PE located in the host country, there may be an exemption from salary taxation in the host country.
In calculating the 183 days, it is generally determined based on physical presence, that is, the actual number of days physically stayed in that country. Therefore, if you stay even part of a day, it is generally counted as one day, and both the entry and exit dates are included.
For example, if you enter China on January 1 and exit on July 2, under Chinese domestic law, the 183-day determination would generally be 181 days, while under the tax treaty, the physical presence could be counted as 183 days. Even if the same entry and exit records are used, the number of days may differ depending on the purpose.
"Which period's 183 days" also varies by treaty.
In tax treaties, attention is needed not only on how to count the days but also on the target period for counting the 183 days.
For example, under the current Japan-China tax treaty, the requirement for the exemption of salary income for short-term residents is that they do not exceed a total of 183 days "in the relevant calendar year." Therefore, in principle, the determination is made for each calendar year from January 1 to December 31.
In contrast, under the Japan-U.S. tax treaty, it is a requirement that the stay does not exceed 183 days for any 12-month period that begins or ends in that tax year. Therefore, simply splitting the stay between December and January of the following year does not reset the 183-day determination.
Other tax treaties also use different standards such as "calendar year," "tax year," or "any 12-month period." Therefore, before concluding that "being within 183 days allows for short-term stay exemptions," it is necessary to check the specific provisions of the applicable tax treaty.
In practice, do not rely solely on one stay duration table.
For foreigners working in China, it may be necessary to calculate multiple durations from the same passport's entry and exit records.
For example, under the Chinese Individual Income Tax Law, entry and exit dates are generally excluded for determining residency, while under the tax treaty, entry and exit dates are generally included for short-term stay exemptions. If there is a relationship with the U.S., it is also necessary to calculate days separately for SPT.
Therefore, in practice, it is important not just to aggregate "how many days were spent in China this year," but to first clarify for what tax determination the days are being calculated. It is desirable to distinguish and manage at least the number of residency days under Chinese domestic law, entry and exit records for the 6-year rule management, and the stay days under the applicable tax treaty for cross-border workers related to China.
Summary
There is no single universal rule called the "183-day rule."
Under Chinese domestic law, for individuals without a residence, only the days stayed in China for 24 hours are generally counted as one day, so normal entry and exit dates are not included. Under the U.S. SPT, if you are present in the U.S. for even part of a day, it is generally counted as one day. Japanese domestic law does not have a general 183-day residency standard. On the other hand, under tax treaties for short-term stay exemptions, both entry and exit dates are generally included based on physical presence.
Under Chinese domestic law, for individuals without a residence, only the days spent in China for 24 hours are counted as one day, meaning that the usual entry and exit dates are not included. In the U.S. SPT (Substantial Presence Test), if an individual is present in the U.S. for even part of a day, it is generally counted as one day. Japanese domestic law does not have a general 183-day residency standard. On the other hand, under tax treaties, the exemption for short-term stayers generally counts both the entry and exit dates based on physical presence.
Furthermore, under tax treaties, the period for determining 183 days may differ, such as calendar year, tax year, or any 12-month period.
Therefore, in the taxation of individuals moving internationally, it is important to confirm "not whether they have exceeded 183 days," but "which country's laws or tax treaties are being used to determine the 183 days, and what period and calculation method are being applied."
*This article provides a general overview of the number of days of stay under the domestic tax laws and tax treaties of China, Japan, and the United States. Actual tax relationships may vary based on factors such as address/residency status, nationality, employment relationships, salary burden relationships, source of income, relevant year, and specific provisions of applicable tax treaties.
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