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Calculating Individual Income Tax on Annual Bonus in China


Dec. 9 – As the year’s end is approaching, many companies in China are poised to give out annual bonuses. However, when contemplating the appropriate bonus amount, employers should pay close attention to the calculation of individual income tax (IIT) on bonuses. The State Administration of Taxation’s announcement No.9 issued in 2005 (guoshuifa [2005] No.9) […]

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