China Annual Individual Income Tax (IIT) Clearance 2019

Individuals working in China - both Chinese and foreign nations - are required to pay individual income tax (IIT) on their income. The online annual Individual Income Tax (“IIT”) clearance system has been open to taxpayers since March 27, 2020. Since then, the topic of annual IIT clearance is drawing attention from taxpayers.

Are you obliged to make the annual IIT clearance? Can you enjoy an IIT refund?  What are the procedures for annual IIT clearance? Are there any special concerns for foreigners? 

Amber Liu, senior manager of Dezan Shira’s Corporate Accounting Services team, will host a webinar answering these questions. The webinar aims to provide you with a comprehensive understanding of the requirements and procedures of annual IIT clearance for both foreigners and Chinese citizens.  

The following topics will be covered:

Section 1: Basic terms for Individual income tax

• Resident taxpayer and non-resident taxpayer
• Comprehensive Income;
• Deductions; and,
• Source of income. 

Section 2: Who shall make the annual individual income tax clearance?

• Who needs to apply the annual individual income tax clearance?
• Who can apply for an IIT refund during the annual individual income tax clearance?
• Who needs to pay supplement IIT during the annual individual income tax clearance?

Section 3: Timeline and procedures for annual IIT clearance?

• When should taxpayers make the annual IIT clearance?
• Annual IIT clearance method; and,
• Liabilities of employees and employers. 

Section 4: Special concerns for foreigners 

• Transition between resident taxpayer and non-resident taxpayer;
• Enjoy the benefits of various double taxation treaty to reduced tax liability; and,
• Income sourced from overseas. 

Section 5: Case study

How to register: 

Register HERE or contact Bonnie. Zheng for more information.