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Individual Income Tax Filings and Declarations for 2011 Earnings
Individuals residing in China are subject to individual income tax (IIT). Expatriates who are employed by a foreign-invested enterprise in China are liable for individual income tax (IIT)from the first day they arrive in China.
IIT is normally withheld by the employer from wages or salaries by employers and paid to the tax authorities on a monthly basis (within seven days of the end of each month). At the end of the year, an annual IIT declaration should be submitted to tax authorities within three months of the end of the previous calendar year (i.e., between January 1, 2012 and March 31, 2012 for the 2011 calendar year).
In this article, we clarify these questions:
- Who is subject to IIT in China?
- What is considered annual income?
- How does IIT apply to expatriate income?
- How is IIT calculated?
To read the full version of this magazine, please purchase this issuein the Asia Briefing Bookstore. Companies requiring assistance may contact Dezan Shira & Associatesat china@dezshira.comor visit www.dezshira.com.
