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Print articleChina: Personal Income Tax Measures for High Earners
July, 2007 -
The State Administration of Taxation issued the Measures on the Self- Declaration of Personal Income Tax (Trial Implementation) on 6 November 2006. The Measures cover the filing process for those who satisfy one of the following conditions:
1. Annual income of 120,000RMB or more;
2. Wages or stipends earned from two or more sources within China;
3. Income earned outside China;
4. Any acquired taxable income without withholding;
5. Other circumstances as stipulated by the State Council.
The Measures are effective immediately for those satisfying condition one, and effective from 1 January 2007 for those satisfying conditions two through four. Those who do not have a permanent residence within China and who do not reside in China for one full calendar year are exempt.
The Measures define what can and cannot be used to tabulate the RMB 120,000 annual income figure, including, but not limited to, the following:
• Wages and salary;
• Remuneration for services;
• Royalties; and
• Interest, dividends and bonuses.
The Measures define the time limit for filing taxes; taxpayers annually earning upwards of RMB 120,000 must file their taxes within three months of the end of the tax calendar (i.e. by 31 March). Taxpayers may file their taxes with the local tax bureau by themselves or through an approved tax agency, and the papers may be submitted electronically, by post, or in person.
Filing forms and their instructions shall be available online as well as in the local tax administration office and designated post offices; both the forms and instructions are printed in English and Chinese.
1. Annual income of 120,000RMB or more;
2. Wages or stipends earned from two or more sources within China;
3. Income earned outside China;
4. Any acquired taxable income without withholding;
5. Other circumstances as stipulated by the State Council.
The Measures are effective immediately for those satisfying condition one, and effective from 1 January 2007 for those satisfying conditions two through four. Those who do not have a permanent residence within China and who do not reside in China for one full calendar year are exempt.
The Measures define what can and cannot be used to tabulate the RMB 120,000 annual income figure, including, but not limited to, the following:
• Wages and salary;
• Remuneration for services;
• Royalties; and
• Interest, dividends and bonuses.
The Measures define the time limit for filing taxes; taxpayers annually earning upwards of RMB 120,000 must file their taxes within three months of the end of the tax calendar (i.e. by 31 March). Taxpayers may file their taxes with the local tax bureau by themselves or through an approved tax agency, and the papers may be submitted electronically, by post, or in person.
Filing forms and their instructions shall be available online as well as in the local tax administration office and designated post offices; both the forms and instructions are printed in English and Chinese.
