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    28.08.2023

    China: Individual Income Tax (“IIT”)


    The last substantial overhaul of the PRC Individual Income Tax´ Law (“IIT Law”) and related implementing regulations and other related measures became effective as of 1 January 2019. Some changes were provided to only be gradually phased out during a transitional period now extended until 31 December 2027 (“Transitional Period”) as per several announcements by the PRC Ministry of Finance on 28 August 2023.

    Contens:
     

    • Income categories and tax filing
    • IIT rates & brackets for different income categories
    • Deductions applicable to calculation of taxable income for IIT purposes
    • Tax residency
    • Withholding agent, taxpayer and tax ID
    • Preferential tax treatments under the IIT Law
    • Anti-avoidance rules

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