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IIT Update

(January 12th, 2016)

Don´t miss the deadline! Prepare now!

Starting form 2006, individuals whose annual income exceeds RMB120,000 will be required to file an annual tax return in the local tax bureau.

 

Who is liable?

First of all, it is necessary to determine whether an individual is subject to a self-declaration. Those who meet one of the following points are requested to submit a self-declaration:

  1. The individual’s annual income exceeds RMB120,000.
  2. The individual’s income is earned from more than one employer.
  3. The individual’s income is received from outside of China.
  4. Individuals who have an income, but do not have a withholding agent.
  5. Other situations stipulated by the State Council.

 

Expatriates working in China who meet the above mentioned criteria also have the obligation to make an annual individual income tax filing.

 

What to report?

In order to complete the individual income tax declaration, the individual is required to provide the following information of the taxable income:

  • Income from wages and salaries
  • Income from production or business operation of individual industrial and commercial households,
  • Income from contracted or leased operations,
  • Income from remuneration for personal service,
  • Income from author’s remuneration,
  • Income from royalties,
  • Income from interest,
  • Dividends and bonuses,
  • Income from lease of property,
  • Income from transfer of property,
  • Contingent income and other income specified as taxable by the finance department of the State Council.

 

How to report?

There are different possibilities to access the local tax bureau. The declaration form can be handed in online, onsite, by post mail or via other methods provided by the tax bureau.

 

When to report?

Please keep in mind that the deadline for annual individual income filing is March 31st of the following year respectively, i.e. the declaration for 2015 needs to be handed in by March 31st, 2016.

 

For more information about IIT feel free also to read our IIT articles payroll for expatriates in China and Individual Income Tax (IIT) in China: practical advice.

If you have further questions concerning Individual Income Tax, please feel free to contact our partner Grace Shi via email: grace.shi@ecovis-beijing.com

 

grace 2 Grace Shi is a partner at ECOVIS Beijing China. She has over 12 years of experience in accounting, auditing, and tax advisory services in both international accounting firms and large Chinese corporations. She has an international MBA and a US Global Finance Master’s degree. Since 2001, she is a Chinese Certified Public Accountant (CPA) and, since 2002, a Chinese Certified Taxation Agent (CTA). Mrs Shi is one of the founders of ECOVIS R&G Consulting Ltd. (Beijing). She has perfect skills in written and spoken English and Chinese. For more information, please contact:  grace.shi@ecovis.com This email address is being protected from spambots. You need JavaScript enabled to view it. 
Ecovis Beijing is the trusted tax and legal advisor of several embassies and official institutions in China. It specializes in mid-sized international companies and is focused on tax & legal advisory, accounting and auditing. If you’re interested in finding out more about tax and legal, don’t hesitate to sign up to our Newsletter, give us a call +49 (0) 6221-9985639 or contact us directly via  Beijing@ecovis.com This email address is being protected from spambots. You need JavaScript enabled to view it.  .
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Author:
Richard Hoffmann
richard.hoffmann@ecovis.com
Office website

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