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