January 2019 - PRC Individual Income Tax Implementation Rules and related Circulars finalized

Highlights of major changes in IIT
Expatriates’ tax preferential policy amended
Tax authority mobile application
Mazars’ view
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In the past month, the Chinese authority has issued various circulars detailing the new rules and regulations on the individual income tax (“IIT”). The final Implementation Rules (the “Implementation Rules”) and the circulars are to implement the new IIT law passed by the Peoples’ Congress in August, 2018.

 

  • On December 13, 2018, the State Council released the “Provisional Rules on the Specific Itemized  Deduction for IIT purpose”  (Guofa (2018) No. 41) (“Circular 41”)
  • On December 18, 2018, the State Council finalized and announced the Implementation Rules which would take effect on January 1, 2019.
  • On December 21, 2018, the SAT issued Public Notice (2018) No. 60 (“PN 60”) laying out the temporary measures dealing with the claiming of itemized deductions.
  • On December 27, 2018, the Ministry of Finance and SAT jointly released the circular Caishui [2018] No. 164 to specify the new tax preferential policies.

 

We summarize here the main changes and implications for individuals.

Please download the newsletter to read the details.

Documents

Newsletter on Individual Income Tax - 14 Jan 2019_中文版
Newsletter on Individual Income Tax - 14 Jan 2019_​中文版
Newsletter on Individual Income Tax - Jan 2019_English
Newsletter on Individual Income Tax - Jan 2019_​English