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If she makes over some small amount, she should have been paying Chinese taxes for all 5 years. (and, I’m not completely sure, but even if your wages are below a certain amount, they still need to be declared locally. The process has changed a lot in the last 2 or 3 years too.)
US citizens are required to pay tax on ALL income, in this case, regardless of if the actual pay is in RMB.
Chinese taxes can be claimed on US tax forms, consult the IRS and state tax publications for details. The net effect is noticeably higher taxes though, so, most ‘decent’ US companies offer a tax equalization benefit; they pay this difference.
Once expat package benefits are included in both tax systems, the tax calculations can get complicated, and, managing things like the difference between the company paying her rent vs. her paying for it and getting reimbursed, or not reimbursed at all, can affect how much tax is paid.
And, after 5 years, with various caveats, she’ll need to pay more in local taxes.
If she has the means, and her company is not helping her directly, it’s probably valuable to her to get a tax/accounting firm involved.