New Individual Income Tax Law of the People’s Republic of China---Denise Xia Comments

 

As the new Individual Income Tax Law entered into force from January 2019, many foreign friends are highly concern about their tax payment conditions.

According to the new Individual Income Tax Law, an individual who resides in mainland China for 183 days or more within one tax year, he or she shall pay individual income tax in China. Once a non-domiciled individual has lived in China continuously for more than five years he or she would then pay individual income tax on his or her all income derived from within and from outside of China.

But there is an exceptional that, if the non-domiciled individual left outside of China for more than 30 days during any of the five years, he or she don’t need to pay the income derived from outside of China. But a registration shall be submitted to the Tax Bureau for it.

New Tax rate:

 

Tax rate

Brackets in the IIT

1

3%

<3000

2

10%

3000-12000

3

20%

12000-25000

4

25%

25000-35000

5

30%

35000-55000

6

35%

55000-80000

7

45%

>80000