On 31 August 2018, the <Decision of the Standing Committee of the National People's Congress ("NPC") on Amending the Individual Income Tax Law of the PRC> was finally passed during the Fifth Session of the Standing Committee of the 13th NPC. The amendment involves all major provisions in the IIT Law. In order to have both employer and employee prepared for the upcoming changes, our October breakfast briefing will feature speakers from PWC to share with you their interpretations and insights on the new IIT law with below topics :
- Introducing the "183-day" threshold in the assessment of the resident and non-resident status of individual taxpayers;
- Revising the income categories and implementing comprehensive taxation on wages and salaries, remuneration for labor services and manuscripts, as well as royalty income (i.e., "comprehensive income") as the first step towards the mixture of aggregate and scheduler taxation system;
- Optimizing tax rates structure and adjusting tax brackets to reduce tax burden for taxpayers deriving comprehensive income and business operation income, especially for taxpayers at low and middle income level;
- Establishing the framework of a comprehensive deduction system by increasing the standard basic deduction and introducing specific additional deductible items such as children's education, continued education, major medical treatment, housing cost and elderly care, etc.;
- Incorporating anti-tax avoidance rules, including arm's length principle, CFC rules and GAAR provision, into the IIT Law;
- Transforming the IIT collection and administration from legal-person based system to natural-person based system through a set of new measures such as unique taxpayer identification number, information sharing and exchange among authorities, annual IIT reconciliation filing of resident taxpayers receiving comprehensive income and diversified obligations of withholding agents, etc.
AmCham China, Tianjin's monthly executive breakfast is a great opportunity to meet members of the 2018 Executive Committee and get involved in Tianjin's professional community. In addition, attendees enjoy the dual benefits of networking and a breakfast at a great price.