The sooner coming IIT Reform - how your IIT will be affected?

Recently, a series of policies aimed at expanding domestic demand, promoting investment and reducing tax burden of enterprises and individuals are being released intensively.

For enterprises income tax, the Chinese government has issued policies such as the “seven tax reduction policies” that we have introduced to you in previous newsletters; For individual income tax (here in called as “IIT”), a reform is in implementing by issuing a Draft Amendments to the Individual Income Tax Law on June 19 2018 by China’s Ministry of Finance, and the second version of Draft Amendments was deliberated on August 27 2018. The amendments to the Individual Income Tax Law (here in called as the “Amendments to the IIT law”) was made and adopted by the Standing Committee of the National People‘s Congress on August 31 2018.

Since the IIT reform scope is extensive, this newsletter focuses on employees‘ wages and other individuals service remuneration, which are closely related to the daily business of a company. By this newsletter, we hope you can learn how your IIT of the two incomes will be affected by the reform.