The new Mainland's Individual Income Tax ("IIT") law came into full effect on 1 January this year. To facilitate the implementation of the new IIT rules, the State Council and the State Administration of Taxation have released new implementation rules and supplementary guidance notes, which provide important statements on a series of administrative measures to streamline tax administration, delegate power to local agencies and optimize government services. In the face of these changes, it is vital for businesses and individuals to have a proper understanding of the new implementation rules and, where necessary, review and adjust their tax arrangements.
The Chamber has invited Daniel Hui and Kate Lai from KPMG to discuss the new rules and policies especially on the key changes brought about the Implementation Rules. Key topics include:
- tax withholding calculations for residents and non-residents;
- details of itemised deductions;
- policies impacting expatriates, including the 6-year rule, and non-tax benefits;
- tax treatment of bonuses and equity compensation;
- obligations of employees and employers under the new PRC IIT law.