The identification of tax resident status is defined at the tax law level according to the domestic laws of various countries because of domicile, residence, place of establishment, location of actual management institution or other similar standards. It is closely related to the exercise of a country's tax jurisdiction and the scope of taxpayers' tax obligations. According to the relevant provisions of China's enterprise income tax law and individual income tax law, different standards apply to the identification of resident enterprises and individual residents in China.

When judging resident enterprises, there are two main ways in the world, one is the principle of place of registration, and the other is the principle of actual management organization. China's enterprise income tax law adopts the above two standards at the same time, that is, any one of the above circumstances constitutes a resident enterprise in China. The first situation is what we call the principle of place of registration, which is mainly aimed at enterprises established in China according to law, including enterprises, institutions, social organizations and other organizations with income established in China according to China laws and administrative regulations.

The second situation is the actual management organization principle. The actual management organization refers to the organization that carries out substantive and comprehensive management and control over the production and operation, personnel, accounts and property of an enterprise. The application of this principle will produce a special type of enterprise "overseas registered Chinese holding". According to the standards recognized by the actual management organization, the overseas registered Chinese-funded holding enterprises can be found in the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issues Concerning the Recognition of Overseas Registered Chinese-funded Holding Enterprises as Resident Enterprises (Guo Shui Fa [2009] No.82).

According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, individual taxpayers in China are also divided into two categories: one is China citizens and foreigners with domicile in China, but excluding overseas Chinese who have China nationality but have not settled in Chinese mainland, and compatriots living in Hongkong, Macau and Taiwan Province provinces. Among them, individuals with domicile in China refer to individuals who habitually live in China due to household registration, family, economic interests and other reasons. There are also foreigners, overseas Chinese and compatriots from Hongkong, Macao and Taiwan Province who have lived in China for no more than 30 days at a time or no more than 90 days for many times in a tax year.

It is worth noting that the judgment of tax residents is based on the provisions of domestic laws of various countries. Taxpayers engaged in international economic activities may be judged as domestic resident taxpayers by the tax authorities of two or more countries at the same time because of the different standards for judging residents pursued by the countries concerned. In this case, taxpayers may bear the comprehensive tax obligations of more than two countries at the same time, resulting in excessive tax burden. In this case, it is necessary to re-judge the method of coordinating dual resident status according to international tax agreements and resolve it through consultation.