China resident enterprises and individuals engaged in foreign investment, business and labor services, who have earned corresponding income in the host country of investment and have the obligation to pay taxes, need to submit their China tax resident identity certificate to the local tax authorities, so as to apply the tax agreement signed between China and the host country and reduce the tax burden of the host country. Therefore, obtaining the tax resident certificate is a prerequisite for enterprises and individuals to "go global" and enjoy preferential treatment under the agreement. Enterprises and individuals can apply for non-payment or underpayment of enterprise income tax or individual income tax in the host country with tax resident certificates.

At present, China has formally signed double taxation avoidance agreements with 102 countries, signed tax arrangements with Hong Kong and Macao, and signed tax agreements with Taiwan Province Province, forming a tax agreement network covering most areas where Chinese enterprises and individuals invest and operate overseas. Enterprises and individuals can obtain corresponding tax benefits by applying for the Tax Resident Certificate on their own initiative.