Personal taxes

摘要

The revised Individual Income Tax Law of 1994 unified the personal income tax for Chinese and foreigners, albeit with varying allowances. It also levied a tax on private business income. Individuals earning more than Rmb120,000 must file annual tax returns within three months of the end of the tax year, which coincides with the calendar year. Annual tax returns also must be filed by individuals who are subject to tax on income from non-Chinese sources or who derive income from two or more sources. The filing requirement applies to both Chinese nationals and foreigners who have lived in China for more than one year. Penalties of up to Rmb10.000 may be assessed for failing to file a return, and fines of up to Rmb50.000 apply for falsification of returns. Tax morality is poor, even among high-income earners.