On 31 December 2021, the Ministry of Finance (“MOF”) and State Taxation Administration (“STA”) released two announcements (i.e.,
MOF STA Announcement [2021] No.42 and No.43) officially extending some preferential Individual Income Tax (“IIT”) policies
January 2019 - How the new IIT calculation method will impact your net salary during the year?
Mazars Newsletter - January 2019
The new Individual Income Tax Implementation Rules have finally been implemented and taken effect from January 1st, 2019 onward. Among those changes mentioned in the SAT Public Notice (2018) No 61, the changes in the calculation method for monthly IIT on salaries and wages for resident taxpayers should be singled out for consideration.
November 2018 - 5-year rule under the new individual income tax law – exposure draft of the“implementation rules”
On 31 August, the Standing Committee of China’s National People’s Congress formally approved the Amendments to the PRC Law on Individual Income Tax (the “New IIT Law”). Please refer to Mazars’ Tax Commentary issued in September, 2018, for a summary.
April 2018 - The PRC SAT issued Public Note 11 to update interpretations of tax treaty articles
On 9 February 2018, the PRC State Administration of Taxation (“SAT”) issued Public Notice [2018] No. 11 (“PN No.11”). The circular updates the SAT’s interpretation of a few selected articles under Double Tax Agreements (“DTAs”) that are concluded by China and clarifies the tax treatments of partnerships.
June 2017 - Common Reporting Standards – AEOI Standard/CRS in China
The OECD common reporting standard (CRS) has applied in China as from 1 July, 2017. The final rules (“Due Diligence Procedures on Financial Account Information in Tax Matters for Nonresidents”) were issued by the State Administration of Taxation (SAT), the Ministry of Finance (MOF) and financial regulatory bodies on 9 May, 2017 as Announcement (2017) No 14 ( hereinafter referred to as the “Announcement 14”). The Announcement addresses financial institution (FI) reporting, what are to be reported, the so-called reportable financial accounts and due diligence procedures to be carried out by the FIs.
May 2017 - SAT INTEGRATING BEPS ACTION PLANS 8 TO 10 AND ACTION PLAN 14
On 17 March 2017, the State Administration of Taxation (“SAT”) released its long-awaited Bulletin on Special Tax Investigations, Adjustments and Mutual Agreement Procedures (“Bulletin 6”), thus largely completing the revision of the transfer pricing specific clauses of the old Circular 2 concerning Special Tax Adjustments.
July 2016 - SAT issued new rules on reporting of related party transactions and contemporaneous documentation
On 29 June 2016, the State Administration of Taxation (SAT) issued the Public Notice Regarding Refining the Reporting of Related Party Transactions and Administration of Transfer Pricing Documentation (SAT Public Notice [2016] No. 42, hereinafter referred to as “Bulletin 42”). Bulletin 42 provides new transfer pricing compliance requirements in China, including Annual Reporting Forms for Related Party Transaction (“RPT Forms”), Country- by-Country Reporting (“CbCR”), and Transfer Pricing Documentation (“TPD”).
