In China, individual income tax ('IIT') is calculated on an accumulated basis. From August 32 2018, the revised Individual Income Tax Law reformed taxable income for tax residents to be measured on a consolidated basis from the 1 January to 31 December (tax year). In other words, the tax rate applied in January should be…
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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…
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It’s important for both China-based employers and foreign employees working in China to be familiar with income tax and compliance requirements pertaining to China’s Individual Income Tax (IIT) Law. Let's jump in and answer some basic questions in three parts. Part I - Individual income tax of foreign employees Q: What is the Individual Income…
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