On August 31st the 7th amendment to the Individual Income Tax was approved by the Standing Committee of the People’s National Congress. In contrast with previews amendments, the 7th is arousing attention in the society as it materially changes the original IIT Law system. In fact, if the previous amendments only adjusted the standard deductions or modified the tax brackets defining salary and wages, the new IIT law contains fundamental changes, which is why it is addressed as an IIT reform.
In the transition period, from October 1st to December 31st, two changes are already into effect: the application of the new standard deduction increased to 5,000 RMB on salaries (from the original of 3,500 RMB/month), and the application of new tax tables to salaries and wages and income from operations.
The new IIT Law will come into full effect starting January 1st and includes 9 main changes:
Tax residence rule; Tax categories Tax rates and brackets Standard deduction Additional itemized deductions Tax assessment, collection and filing Information sharing across different departments Tax clearance requirements upon emigration Anti-avoidance rules for individuals
To make EU SMEs familiar with the reform, the above changes will be analysed in details in the webinar together with the recent updates approved as of October 19th. In the webinar, the speaker also provides case studies and instructions on how to get ready for the IIT reform.
You can find the recorded video on YouTube. To download the slides please log in.
About the Speaker
Melody Ma, Tax director, Global Employer Service, Deloitte China
Melody has been actively involved in a variety of projects serving entities and operations of Multinational Companies in China as well as PRC domestic enterprises. She has extensive experience on tax compliance, tax and business advisory and tax planning, and has a variety of industries client experience, such as manufacturing, technology/media/telecommunications, energy and resources, financial institutions, real estate, as well as consumer business, etc.
Melody focuses on PRC individual income tax (“IIT”) services to MNC and domestic companies and individuals. She has accumulated rich experience in providing services such as PRC IIT advice, planning, IIT compliance review and cross-border IIT advisory to both expatriate and China local high-net wealth individuals, and is also experienced at assisting the companies and individuals to deal with tax audits.
Melody graduated from Renmin University of China. She is a Certified Tax Agent (“CTA”) of China.