On August 31 2018, the National People’s Congress Standing Committe officially passed the new Individual Income Tax (IIT) reform, which will be implemented in January 2019.
Earlier this week we had full house at Four Seasons Hotel Shanghai hosting an event dedicated to the topic of IIT, discussing how it will effect companies in China. The two draft rules of the IIT provided more details on the changes brought about by the new law which include the amendments on five-year rule, defining of China sourced income, requirement of annual reconciliation, elaboration on anti-avoidance rules and rules in relation to specific additional deductions etc.
The tax payers and employers should have a comprehensive understanding of the new regulations and get fully prepared to embrace the changes.
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