China: IIT reform nailed down - a glimpse of the new IIT Law

Sep 2018

The ‘Decision of the Standing Committee of the National People’s Congress on Amending the Individual Income Tax Law of the PRC’ was passed on August 31, 2018 during the Fifth Session of the Standing Committee of the 13th NPC. The amendment unveils a new Individual Income Tax (IIT) regime mixing aggregate and schedular taxation systems, and refines the IIT law in multiple areas. These changes impact not only every taxpayer, but also enterprises and other market players. At the same time, we are expecting the subsequent release of detailed implementation rules (DIR) and other relevant regulations that complete the picture of the new IIT Law and its regime.

With the final amendment completed, this Insight provides a summary of the key revisions and differences/similarities between the final amendment and the ‘Draft Amendment to the IIT Law’ (Draft Amendment), with our observations. (See prior Global Mobility Insight for the major revisions proposed in the Draft Amendment.)

Contact us

Jacky Chu

Partner

Tel: +[86] (21) 2323 5509

Edmund Yang

Partner

Tel: +[86] (10) 6533 2812

Louis Lam

Partner, Global Mobility Services

Tel: +[852] 2289 5528

Follow us