The new Individual Income Tax Law (IIT) in China

In the summer of 2018, the comprehensive reform of the Individual Income Tax Law (IIT) in the People's Republic of China was adopted. Since then, new regulations and details have gradually been published. In addition to the introduction of special additional deduction and the reform of the 5-year rule, it is also discussed how the taxable basis apportionment between China- and foreign-sourced income is defined, when the allowance deduction for non-resident taxpayers may be applied and which role companies and their withholding agents play in the collection and withholding of income tax.

All relevant changes and developments regarding income tax in China can be found here:

• New Individual Income Tax Law: Existing ambiguities for foreign taxpayers
• New details for the implementation of the new IIT law
• Major Tax Reforms in China: Introduction of anti-tax avoidance clause in individual income tax
• Out Now! – Draft of Implementation Regulations of the New IIT-Law
• Tax Preferential Treatment for Foreign Individuals Continues: Alert under the Good News
• The Amendment to the Individual Income Tax Law is officially approved
• Big IIT relief on foreign expatriates in China