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For the Brazilian Community in Dongguan: How China’s Individual Income Tax Reform affects you?

CW delivered a seminar on the amended Individual Income Tax Law to the Brazilian community in Dongguan on 1 December 2018.

The main issues concerned are:

  • Implications of the amended IIT Law on expatriates in China;
  • New definition of tax residence and the new “5-Year Rule”;
  • IIT associated with new categories of income and the corresponding tax rates;
  • Standard basic deduction and specific additional deductions;
  • How does “Double Taxation Agreement” work in case of dual tax residency;
  • IIT compliance management.

As the new IIT Law will be rolled out in January 2019, we advise companies to start identifying the employees impacted by the amended IIT Law and quantify the incremental tax costs and the related compliance costs.

Under the new definition of tax residency, it is essential for employers to review expatriate talent management in the aspects of tax break planning and the remuneration package design.

If you are a Brazilian working in China and would like to review your tax position, please feel free to write to our Portuguese advisor Ms. Irene Leung (irene.leung@cwhkcpa.com).