September 2018 - The PRC Law on Individual Income Tax (“IIT”) Amendments Approved

In Brief

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.