UUÂãÁÄÖ±²¥

2.1 Withholding of income tax

Commentary

2.1.1 Withholding obligation | China

China

2.1ÌýÌýÌýÌý Withholding of income tax

Individual Income Tax (IIT) is usually withheld at source. Being a paying unit, a Chinese employer has the withholding obligation for withholding and paying IIT to the in-charge tax authority before or by 15th of each following month (1.3.2).

In case the IIT is not correctly withheld and paid, the employee himself can do a self-reporting.

2.1.1ÌýÌýÌýÌý Withholding obligation

In view of the complexity of withholding income tax under different scenarios, the following matrix is prepared for easy reference.

TypeSalary incomeWithholding entity
Chinese employeesSalary income received from Chinese registered entityThe Chinese registered entity
(sign an employment contract with a Chinese registered entity or dual employment contract with a Chinese registered entity and its foreign parent company)Salary income received from foreign parent company
Chinese outboundsSalary income received from Chinese registered

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial

Web page updated on 28 Aug 2024 12:13