The PRC Ministry of Finance and State Administration of Taxation (SAT) have jointly released a Consultation Draft on the Detailed Implementation Rules of the PRC Individual Income Tax (IIT) Law (DIRs Draft) and the Provisional Implementation Measures of Additional Itemised Deductible Items (Provisional Measures) on 20 October 2018 for comment.
Both the DIRs Draft and the Provisional Measures are an integral foundation for additional IIT implementation rules and interpretation going forward, and there has been a high level of public attention since their release.
The following are some key points and insights regarding these two important consultation drafts:
- Taxation of foreign individuals
- Refining the rules on sourcing of income
- Guidelines on additional itemised deductions
- General requirements for annual reconciliation
- Foreign tax credit for residents
- Glimpse of the anti-avoidance rules.
Please see the attached Insight for further details.
