| Newsletter
> Notice on Individual Income Tax Law in regards to tax regulations
on individuals who have no residential address in mainland China.
The
State Administration of Taxation of PRC has announced a "Notice
on Individual Income Tax Law in regards to tax regulations on individuals
who have no residential address in PRC". According to the PRC
Individual Income Tax Law, its enforcement details and relevant regulations
of tax treaties between PRC and other countries, from July 1, 2004,
rules are solidified in the following four aspects.
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| 1.
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Regarding
the method of calculation on the number of days residing in PRC, it
is based on the actual number of days the individual stays in PRC.
Arrival, departure, day trip, same day multiple entries are all treated
as having stayed in the mainland for one day. |
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| 2.
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As
for the number of working days in PRC, arrival, departure, day trip,
same day multiple entries are all calculated as half day. |
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| 3. |
Appropriate
formula to calculate the Individual Income Tax payable is applicable
for individuals with different tax positions. |
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| 4.
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For
individual who obtains directorship and at the same time takes up
an executive management position, or is not a director officially
but has the ability to exercise the rights of a director, his or her
remuneration derived from the enterprise(s) in PRC including remunerations
received as a director or executive management, are subject to Individual
Income Tax accordingly. |
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