On 31 August, the Standing Committee of China’s National People’s Congress formally approved the Amendments to the PRC Law on IIT (the “Amendments”).
The key changes that will affect individual expatriates and their employers include:
- Revising the criteria for determining tax residency status;
- Implementing a mixture of aggregate and scheduler taxation system to replace the old scheduler taxation system;
- Amending the tax rates and taxable income brackets;
- Increasing the standard basic deduction and introducing additional specific deductible items;
- Introducing a unique taxpayer identification number; and
- Introducing an anti-tax avoidance rule.
The Amendments are indeed signifying an overhaul of the IIT system.
Please download the newsletter below to find out more details.
Mazars Tax Newsletter - September 2018
Mazars Tax Newsletter - September 2018_Japanese Version