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2007 PRC Individual Income Tax (IIT) Annual Report ¨C Getting started early!
We are briefing you on the key facts of the PRC IIT Annual filing that will impact foreigners living in China. Please note that this is NOT a formal interpretation of the PRC IIT annual filing rules, you should not act upon it without seeking professional advices.

Who must file?

  • Individual with annual income over RMB120,000;
  • Individual has earned wage income from 2 or more employers;
  • Individual has foreign earned income;
  • Individual has received taxable income and no China tax withheld;
  • Other situation required by PRC tax law.

Your tax residency status matters!

  • Non-domiciled foreigners stayed in China for less than one full year (out of China 30 days consecutively or 90 days progressively).
    No, no need to file;
  • Non-domiciled foreigners stayed in China for more than one full year:
    Yes, include your China sourced taxable income.
  • Non-domiciled foreigners stayed in China for more than 5 full years:
    Yes, include your worldwide taxable income.
  • Domiciled resident in China:
    Yes, and include your worldwide taxable income;

Your occupation and income nature matters!
Your income may be exempt, such as:

  • Incomes of diplomatic representatives, consular officers and other personnel of foreign embassies and consulates in China shall be exempt from tax;
  • Incomes, which shall be exempt from tax under the international Double taxation treaties or agreements which the Chinese Government has signed;

How to file?

  • File PRC IIT Annual report by yourself online, or mailing the forms, or visiting to your local tax bureau;
  • File PRC IIT Report by your company, or an agent online or mailing the forms.

When to file?

Filing period is Jan 1, 2008 ¨C March 31, 2008

State Administration of Taxation
Beijing Local Taxation Bureau
Shanghai Taxation Bureau