The tax man cometh
4th March 2008
Expats working in China who earn more than RMB120,000 (about US$16,200) need to complete and submit an Individual Income Tax Declaration Form to the local tax authority in addition to their regular routine monthly tax filings.
The following is a brief introduction to individual income taxes in China. It is excerpted from the January/February 2008 issue of China Briefing. The complete issue can be found here. (subscription required)
Who is subject to annual self-declaration?
In accordance with The Implementing Rules of the Individual Income Tax Law of the People’s Republic of China and The Self-declaration Rules Concerning Individual Income Tax, taxpayers who meet the following conditions should file self-declarations of individual income taxes.
1) An annual income of more than RMB120,000
2) Income derived from two or more places inside the People’s Republic of China
3) Income derived partly or fully from sources outside the People’s Republic of China
4) Have received taxable income but have not paid tax