China’s Individual Income Tax Law: Taxpayers
Individual income tax refers to a type of tax levied on various taxable income obtained by individuals (i.e., natural persons). The Individual Income Tax Law of the PRC, promulgated on September 10, 1980 and revised six times in 1993, 1999, and 2005, on June 29 and December 29, 2007 and September 1, 2011, is the basic legal basis for the taxation of individual income tax in the PRC.
(I) Taxpayers of individual income tax
The taxpayers of individual income tax include Chinese citizens, individual businesses, foreign nationals (including stateless individuals) who obtain income in the PRC, and compatriots in Hong Kong, Macau, and Taiwan. The above taxpayers can be further divided into resident taxpayers and non-resident taxpayers.
A resident taxpayer refers to an individual who has a residence in the PRC or has been residing in the PRC without a residence for at least one year. Resident taxpayers have unlimited tax obligations, and they must pay individual income tax in the PRC for their taxable income, whether sourced from within or outside the PRC.
A non-resident taxpayer refers to an individual who has no residence in the PRC and is not residing in the PRC, or has been residing in the PRC without a residence for no more than one year. Non-resident taxpayers have limited tax obligations, which means that they only need to pay individual income tax in the PRC for their income sourced from within the PRC. In addition, investors in sole proprietorships and partnerships are also taxpayers of individual income tax.
Practising lawyers
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Robert Zhang
An international lawyer registered in Shanghai, China. Master's degreePublish…
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Steve Li
An international lawyer registered in Shanghai, China. Master's degreePublish…
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