China Tax News : Draft Amendment Bill on the Individual Income Tax Law
The Draft Amendment Bill on the Law of the People's Republic of China on Individual Income Tax has been deliberated on the Third Session of the Standing Committee of the 13th National People's Congress and is now published for public consultation.
The Draft Amendment Bill introduces the concept of resident and non-resident for tax purposes. It also adjusts the existing tax residence test from one-year to 183 days. The tax brackets with applicable tax rate of 3%, 10% and 20% will be widen by narrowing the 25% tax bracket whereas the tax brackets for 30%, 35% and 45% will remain unchanged. The personal basic deduction will be increased to RMB 5,000 per month (i.e. RMB60,000 per year).
Should you have any questions or require further details, please contact Kenneth Au at kennetha@zetland.biz or +852 3552 9093.
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