Search Results for: IIT

CHINA | Collecting Personal Information

In the era of Big Data and the Internet of Everything (IoE), users are increasingly attentive to how companies are collecting personal information.

Confidential personal information such as mobile numbers and personal ID are increasingly requested to activate numerous daily life functions, for instance, SMS authentication code for website or app registration or login. Additionally, companies request facial, voice, or other bio-metric features as authentication or verification such as facial recognition or voice print.    

Thus, jurisdictions around the world have […]

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CHINA | Individual Income Tax Reforms

On 1 January 2019, reforms in China’s Individual Income Tax (“IIT”) were effective. IIT reforms ease tax burdens for lower-income earners and provision higher taxes for high-income earners – both foreign and domestic individuals.

For foreign employees in China, further IIT changes from 1 January 2022 shall heavily impact the net salary.

Effective from 1 January 2022, previous tax allowances for foreigners classified as tax residents (“foreigners”) in China will be subject to taxation. The expenses such as children’s education, housing […]

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CHINA | Individual Income Tax for Foreign Employees in China

Revised Individual Income Tax of the People’s Republic of China (“IIT”) paves significant changes IIT calculations.

With the 2020 Individual Income Settlement due by 30 June 2021, we provide an insight to income tax in China and compliance requirements. Let’s jump in and answer some basic questions in three parts.

Q: Who is Considered as a Tax Resident?

A: Under the IIT, a tax resident is defined by either the domicile of the individual or the duration of stay in China.

Domicile

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