Ablean Saoud and Sarah Langborne discuss the Chinese Government’s reforms to personal taxes – the largest in China in decades.
The Chinese Government introduced reforms to personal taxes on August 31 – the largest such reforms in China in decades. The reforms will fundamentally change the method (and rates) by which tax is collected, and also impose new tax residency rules. The Individual Income Tax (IIT) reforms will take full effect from 1 January 2019, while the revised standard personal deduction and tax rates table will apply from 1 October 2018.
Some of the key changes which will significantly impact both locally employed and seconded employees in China are as follows:
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