New Individual Income Tax Regulations - Effective from September 1,2011

2018-12-31 19:12:29

After a long and, at times, heated debate the Standing Committee of the National People;s Congress(NCP) has passed new revisions to China's individual income tax(IIT) law,increasing the amount of deductable income for Chinese nationals.

The revision of the IIT law has received great attention during the public solicitation period,where people have argued a further in the amount of deductable income than to the originally proposed RMB 3,000. The result of the 240,000 responses to the solicitation was an increase in the deductable income from RMB 2,000 to RMB 3,500 and a reduced tax rate for the lowest income earners form 5% to 3%.