CHINA TAX UPDATE:
2007 PRC Individual Income Tax (IIT) Annual Report ¨C Getting started early!
We are briefing you on the key facts of the PRC IIT Annual filing that will impact foreigners living in China. Please note that this is NOT a formal interpretation of the PRC IIT annual filing rules, you should not act upon it without seeking professional advices.
Who must file?
- Individual with annual income over RMB120,000;
- Individual has earned wage income from 2 or more employers;
- Individual has foreign earned income;
- Individual has received taxable income and no China tax withheld;
- Other situation required by PRC tax law.
Besides¡
Your tax residency status matters!
- Non-domiciled foreigners stayed in China for less than one full year (out of China 30 days consecutively or 90 days progressively).
No, no need to file;
- Non-domiciled foreigners stayed in China for more than one full year:
Yes, include your China sourced taxable income.
- Non-domiciled foreigners stayed in China for more than 5 full years:
Yes, include your worldwide taxable income.
- Domiciled resident in China:
Yes, and include your worldwide taxable income;
Your occupation and income nature matters!
Your income may be exempt, such as:
- Incomes of diplomatic representatives, consular officers and other personnel of foreign embassies and consulates in China shall be exempt from tax;
- Incomes, which shall be exempt from tax under the international Double taxation treaties or agreements which the Chinese Government has signed;
How to file?
- File PRC IIT Annual report by yourself online, or mailing the forms, or visiting to your local tax bureau;
- File PRC IIT Report by your company, or an agent online or mailing the forms.
When to file? Filing period is Jan 1, 2008 ¨C March 31, 2008 |