Annual IIT Declaration 2024 in China – Overview of the new administrative requirements

published on 18 March 2025 | reading time approx. 3 minutes

On 26 February 2025, the State Taxation Administration (STA) issued Order No. 57, officially implementing the Administrative Measures for the Annual Settlement and Payment of Comprehensive Individual Income Tax. These measures, effective immediately, establish the framework for annual IIT return filing.

Background and objectives of the new measures »
Scope of the annual IIT return »
Filing requirements »
Recommendations for taxpayers »

Background and objectives of the new measures

Since the introduction of China’s revised Individual Income Tax Law in 2019, taxpayers have been required to reconcile their annual tax liability for comprehensive income – including wages, labor remuneration, manuscript fees, and royalties – through an annual settlement process. Over the past five years, the tax authorities have issued annual guidelines to clarify filing requirements and improve taxpayer compliance.

With the system now well established, the new Administrative Measures aim to enhance stability, institutionalizing key procedures that have proven effective in practice. The measures focus on:

Streamlining the filing process: Pre-filling tax returns, appointment-based filing, and prioritization of refunds for taxpayers with significant financial burdens.
Strengthening taxpayer protections: Enhancing legal safeguards, providing clear avenues for objections and appeals, and reinforcing confidentiality of tax-related personal data.
Improving taxpayer awareness and preparation: Encouraging early validation of tax data, verification of deductions, and proactive engagement with the filing process.

Scope of the annual IIT return

The annual individual income tax return for 2024 can be filed between 1 March and 30 June 30 2025. The annual IIT return applies exclusively to comprehensive income, which includes:

Salaries and wages
Labor remuneration
Manuscript remuneration
Royalties

Other types of income – such as rental income – are taxed separately and do not fall under the scope of the annual IIT reconciliation.

Filing requirements

A resident taxpayer must file an annual IIT return if they meet any of the following conditions:

Overpaid IIT and wish to claim a refund.
Underpaid IIT exceeding RMB 400, with total comprehensive income exceeding RMB 120,000.
Misreported or omitted income, leading to incorrect tax calculation.
Received multiple sources of comprehensive income that require reconciliation.

Conversely, filing is not required if:

Prepaid IIT matches the final tax liability.
The underpayment is below RMB 400, or the total comprehensive income is not exceeding RMB 120,000.
The taxpayer qualifies for a refund but chooses not to claim it.

Recommendations for taxpayers

To ensure smooth compliance, taxpayers should:

Verify pre-filled data on the IIT App or tax portal.
Identify eligible deductions and ensure supporting documents are available.
Coordinate deductions with family members where applicable.
File early if expecting a refund or requiring corrections.

By staying informed and preparing in advance, taxpayers can optimize their filings and avoid unnecessary penalties. For further details, refer to STA Order No. 57 (2025). Additionally, the tax authorities have released Q&As and case studies to help taxpayers navigate potential uncertainties and better understand the new measures.