International Law

Filing annual individual income tax returns in China

By Dezan Shira & Associates

By Smile Yu/Dezan Shira & Associates 

BEIJING, Jan. 2 - Early in 2008, expatriate employees in China with annual incomes in excess of RMB120,000 (about US$16,200) should complete an annual self-declaration to be submitted by the end of March ? at the latest ? for their income earned in the 2007 tax year. This annual self-declaration means such expatriates should complete and submit an Individual Income Tax Declaration Form to the local tax authority in addition to their regular routine monthly tax filings.

The following is a brief introduction to individual income taxes in China. It is excerpted from the January/February 2008 issue of China Briefing. The complete issue can be found here.

Who is subject to annual self-declaration?
In accordance with The Implementing Rules of the Individual Income Tax Law of the People?s Republic of China and The Self-declaration Rules Concerning Individual Income Tax, taxpayers who meet the following five conditions should file self-declarations of individual income taxes.

1) An annual income of more than RMB120,000
2) Income derived from two or more places inside the People’s Republic of China
3) Income derived partly or fully from sources outside the People’s Republic of China
4) Have received taxable income but not paid tax
5) Other conditions regulated by the State Council (more…)

Full post as published by China Briefing Blog on January 01, 2008 (boomark / email).