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China IIT Annual Settlement

The new Individual Income Tax Law (IIT Law) of the People’s Republic of China, which has been implemented from the tax year 2019, has introduced the comprehensive income and new applicable deductions, revised the definition of tax residence, amended the tax brackets and modified the annual settlement mechanism.

According to the new IIT Law, resident taxpayers are required to calculate the individual income tax on the comprehensive income on a yearly basis; the comprehensive incom