Expat tax date looms in China



Expatriates working in China have until the end of March to sort out their taxes.

All individual income taxpayers (IIT) in China earning over RMB 120,000 must complete their self-declaration forms by March 31, and it is suspected that many expats are unsure of their actual liabilities.

Recently a tax workshop was conducted in Shanghai aimed at giving expats a clearer picture of their IIT liabilities. Tax expert Jacky Qi hosted the workshop, and he explained that expat liabilities are different depending on the individual’s case. For instance liabilities differ due to factors such as the duration of their stay in China, their nationalities, their job and their income sources. Qi also explained that expats in senior roles may face bigger liabilities.

He also explained that there are a range of IIT-exempt allowances that are available to expats from their employers.

The presentation was said to have attracted a large audience.

Expats must file a self-declaration if they: earn more RMB 120,000 or more, earn money from more than one source, earn money from overseas, and if they have derived taxable income without a withholding agent.

Expats should also be aware that there are penalties and fines that come can from incorrect or late submission. These include- fine of RMB 10,000 for late submission, fine of RMB 50,000 if the taxpayer is involved in falsifications and misreporting of figures, a fine of between 50 percent and 500 percent if the taxpayer under declares their tax and a fine of between 50 percent and 300 percent if the withholding agent is found to have made an incorrect calculation.