China Releases Long Awaited Reform to IIT Law
August 28, 2018 | BY
Jacelyn JohnsonDavid Dingfa Liu, Partner and Tianxiao Jin, Associate at Fujae Partners in Shanghaidiscuss the newly passed Individual Income Tax Law. The law that will come in forceon January 1, 2019 would have a significant impact on taxpayers.
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On August 31, 2018, the Standing Committee of the National People's Congress of China published the Amendments to the PRC Individual Income Tax Law (中华人民共和国个人所得税法) (the IIT LawReform) which will become effective on January 1, 2019. The IIT Law was last amended in 2011. Since then, the tax brackets, the corresponding tax rates and tax-deductible expenses have not been revised, even though the average household income and living expenses have significantly increased.