Following the release of the newly revised Individual Income Tax Law of the People’s Republic of China on August 31, 2018, PRC State Council promulgated the revised Implementation Regulations for the Individual Income Tax Law (“New Regulations”) recently on December 18, 2018, which will come into force on the same day along with the new Individual Income Tax Law on January 1, 2019.
To ensure the better implementation of the new Individual Income Tax Law, the New Regulations have following highlights:
Increase the tax preferential treatment for foreigners;
Refine the details of “other deductions” for the calculation of taxable income of a resident individual;
Final settlement can be handled through delegation.