2019 China Tax Review

• Citation: jd0062
• Date: 12 February 2020
• Published date: 12/02/2020
• Subject Matter: Tax

2020/10/20 2019 China Tax Review | China Law Insight

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CHINA LAW INSIGHT

2019 China Tax Review

By King & Wood Mallesons on February 12, 2020

By Daisy Duan, Cao Linlin, King and Wood Mallesons

This article reviews and highlights the new individual income tax rules and major tax rules

issued in 2019, which may impact on foreign companies doing business in

China.Guidance issued for IIT treatment of foreign

individuals

ThePRC Individual Income Tax Law (IIT Law) (中华人民共和国个人所得税法) and its

Implementing Regulations (中华人民共和国个人所得税法实施条例) were revised in the

second half of 2018 and became effective on Jan. 1, 2019. They have profoundly

influenced all individual taxpayers and reshaped China’s individual income tax (IIT)

regime. At the start of 2019, the long-awaited guidance was issued, which further clarifies

the IIT treatment of foreign individuals with no domicile in China.

In March 2019, the Ministry of Finance (MOF) and State Administration of Taxation (SAT)

released MOF/SAT Announcement [2019] No.34, Announcement on the Criteria for

Determining the Duration of Residency of Individuals Without a Domicile in China (关于在

中国境内无住所的个人居住时间判定标准的公告), and No.35,Announcement on Individual

Income Tax Policy Relevant to Non-Tax-Resident Individuals and Tax-Resident Individuals

Without a Domicile (关于非居民个人和无住所居民个人有关个人所得税政策的公告), which