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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Recently, illegal entry into China, taking up residence and working has been included in the Awards for Reporting Illegal and Criminal Offences Implementing Measures (The Measures) in the southern city of Shenzhen.
The Measures were issued by the Shenzhen Municipal Public Security Bureau on 16 May 2019. And while they only relate to the municipality of Shenzhen, similar measures may end up being be promogulated in other top-tier cities.
According to the measures, informants reporting on illegal foreigners shall […]
Read moreThe revised Individual Income Tax (IIT) promulgated on 31 August 2018 and fully effective from 1 January marks significant changes to the individual taxation in China. Primarily, the changes relieve certain tax burdens for low and middle income-earners. In previous tax articles, we have highlighted a number of key takeaways related to IIT.
For foreigners working in China, the new reforms will significantly change income tax calculations and deductible items. Specifically, several significant tax impacts on foreigners are noted in […]
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