September 2017 - A Recent Individual Income Tax Case Relating To Expatriates In China
A Recent IIT Case Relating To Expatriates In China
Recently, the Beijing Local Tax Authority had launched an investigation on a Chinese subsidiary of a Fortune 500 Company, focusing on individual income tax of the expatriates. The triggering point for the investigation is that the quantum of fringe benefits provided to these expatriates far exceeds that of expatriates of comparable entities in the industry. The back taxes and penalties imposed on the Chinese subsidiary are well over RMB 28 million.