On 10 April 2019, CW presented the latest update on the amended Individual Income Tax (IIT) Law as well as its implementation regulations and measures at the legal update seminar co-organized with Australian Chamber of Commerce (AustCham) South China and Zhong Lun Law Firm, and hosted at Zhong Lun’s Guangzhou office.
Our Partner Mr. Thomas Wong and our PRC Accounting Specialist Ms. Hailey Guo briefed the audience on the new definition of tax residency under the amended IIT Law in addition to some latest preferential policies announced in March such as the new 6-year rule and the new criteria for determining days of residence of individuals without domicile. They also made a comparison between specific additional deductions & eight tax exemption allowances and provided examples of tax calculation under the amended IIT Law. Practical suggestions to employers and employees have also been given to remind the audience of how they should adapt to all the changes brought by the amended IIT Law which took place at a rather fast pace.
We are honored to have Mr. Geoff Matthews, Consul (Political/Economic) of the Australian Consulate-General in Guangzhou, to moderate the seminar. Mr. Kent Woo and Mr. Matthew Warr from Zhong Lun Law Firm also shared their insights on the new Foreign Investment Law in China and the common legal issues foreign investors might face when doing business in China.
China’s IIT reform has a significant impact on both enterprises (as employers) and individuals. Enterprises should get ready to deal with challenges of all kinds, from designing new corporate policies and administration mechanism to communicating the same with employees and carrying out the new procedures to adapt to changes. It is also time for high net-worth individuals and foreign expatriates in China to review their tax liabilities, assess their tax risks and stay alert to the latest tax rules as well as the global income reporting procedures.
In fact, some of our clients have already got in touch with us to review and adjust their existing income structure, minimize their risk exposure and look into various issues related to their IIT compliance and planning. So in case you need any professional advice and support in IIT or foreign investment in China, please feel free to write to Delilah Li (firstname.lastname@example.org).