individual income tax

China’s Foreign Investment Law towards stability and long-term sustainability

In the next 18 months, the Chinese Foreign Investment Law should be reshaped around three main aspects to further liberalize the Chinese market accordingly to international standards.

The State Administration of Taxation issues “Administrative Measures for Individual Income Tax on Equity Transfer”

SAT issued the Public Announcement No. 67, “Administrative Measures for Individual Income Tax on Capital Gains from Equity Transfer” that came into effect since January 1, 2015. This Announcement introduces new rules to strengthen the individual income tax on capital gains from equity transfer. Tax payers must pay the individual income tax on revenue derived from equity transfer based on the income from transfer of property. The tax rate is at 20%.

Main points:

China’s new individual income tax rates.


China’s legislature has approved an increase in the individual income tax free threshold to RMB 3500 for Chinese nationals and a new streamlined schedule of tax brackets, down from nine to seven. The new rates will come into effect from September 1st.

Foreigners will also be subject to the new rates; however, the tax free threshold for foreign workers will remain at RMB 4800.

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