§ 1. Mr. KELLYasked the Secretary of State for Foreign Affairs whether British residents in China pay any Income Tax either to the British Government or to the Chinese Government; and whether any British residents in China pay any local taxes to the Chinese authorities?
§ The SECRETARY of STATE for FOREIGN AFFAIRS (Mr. Arthur Henderson)The fact that a person is resident in China does not of itself exempt him from liability to British Income Tax. British residents in China pay no income tax to the Chinese Government. Although in general British residents in China are not legally liable to local taxation by the Chinese authorities, they do, in fact, in areas controlled by the Chinese pay municipal taxes provided that these are regular and nondiscriminatory in form and reasonable in amount.