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NEWS: China – Individual Income Tax Reform
06/09/2018
On 31 August 2018, China’s top legislature passed a new individual income tax law. The two most significant provisions that may have a huge impact on PRC HNWIs are:
1) Tax residence rule
The new law defines resident individuals and non-resident individuals as two types of taxpayers. An individual who stays in China for 183 days will be determined as PRC tax resident.
2) Anti-avoidance provisions
The amendment will give tax authorities additional powers over tax avoidance schemes.
For more details on the new individual income tax law, please contact your tax advisor.
1) Tax residence rule
The new law defines resident individuals and non-resident individuals as two types of taxpayers. An individual who stays in China for 183 days will be determined as PRC tax resident.
2) Anti-avoidance provisions
The amendment will give tax authorities additional powers over tax avoidance schemes.
For more details on the new individual income tax law, please contact your tax advisor.
