In recent times, many mainland Chinese are taking up employment or immigration opportunities
outside China. With the accumulation of personal wealth in China, more of such movement of human
capital can be expected. However, at the same time, the Chinese tax authorities are increas- ing
their attempts to enforce Chinese law on Chinese working outside mainland China by requiring them
to report overseas income and comply with China’s Individual Income Tax Law. The threat of “double
taxation” will inevitably affect the decisions of those who are looking for overseas employ- ment
opportunities and those who are currently working abroad. This article examines the tax con-
sequences of both outbound and inbound cross-border employment from China’s perspective. By
comparing the income tax rules applicable to different groups of cross-border employees, the
article will highlight the discriminatory treatment of Chinese cross-border employees and propose
mea-
sures to better facilitate the cross-border movement of human resources.