Individual Income Tax (IIT)

Annual Individual Income Tax Settlement

In December 2019, the State Administration of Taxation issued a tax circular on the final settlement of individual income tax in 2019. The circular serves to further clarify the process of annual tax settlement and to establish a reasonable and orderly system for the settlement and payment of comprehensive income from personal income tax.

China "tax break" principle for expatriates

What does “Tax break” stand for? What does the Individual Income Tax Law (IITL) state in China? What are the underlying rules and practices? 

The “Tax Break” is not an official rule in the Chinese tax authority. It is a common practice based on the understanding of the Individual Income Tax Law (IITL), the Individual Income Tax Implementing Rules (IITIR) and the Caishuizi (1995) issued by the Ministry of Finance (MOF) and the State Administration of Taxation (SAT).