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Are China Pensions Taxable if the Taxpayer lives in U.S. (US Citizens or Green Card)?

Level 4

I have read US-China Tax Treaty Article 17 and Article 18 and IRS Taxation of Foreign Pensions and Pub 901 Page 28, but I am still confused in regards to the Taxation of China Pensions. 

Can someone please clarify the taxation rules?

If the Taxpayer is a US. Citizen or a US Green Card Holder and lives in the U.S,

Is  Pension received from a former Chinese Employer taxable in the U.S?

Is Pension received from Chinese government for services performed for China (government pension) taxable in the U.S.?

If pensions are exempt/not taxable, does the taxpayer still need to report the pension on the US. income tax return in order to properly claim an exemption on a specific form?


Thank you!





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3 Comments 3
Level 9

@swongtax  if you are a US Citizen what income is not taxable to the US?

What software program do you use to prepare taxes?


Level 14
Level 14

this is from Pub 971 page 28

"Pensions paid by the People's Republic of
China for services performed for China are exempt from U.S. income tax unless the recipient
is both a citizen and a resident of the United States."

Level 4

Thanks for responses, but US - China tax treaty and taxation of China pensions sounds more complicated.

Read this:


1.  It depends on if the pension is a government pension(Social insurance pension) or private company pension (See Pub 901, P 28)

2.  It depends on if the US taxpayer is a US Citizen or Green Card Holder (See Pub 901, P 28)

3.  If excludable from income, IRS Form 8833 must be filed along with a federal income tax return (See article Above)


Proseries Basic User





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