Individual Tax

China takes a scheduled income tax system, under which different types of the income shall be subject to different tax rate and calculation approach. Resident individual shall be subject to the individual income tax (“IIT”) for his/her worldwide income, and non-resident individual shall be only subject to the PRC IIT for his/her China sourced income.
M&T Lawyers can provide both of the resident and non-resident individuals the following professional tax-related services:
  • Tax advisor for individual investment
  • Foreign personal tax advisor. The extent of the tax liability of the foreign individuals normally depends on their length of the stay in China and the nature of the income.  Meanwhile, the SAT issues some tax incentive policies applicable to foreigners. Our professionals in individual tax team can advise the foreign companies and individuals in the following aspects: (1) personal salary planning to alleviate the personal’s tax liability; (2) IIT declaration of the foreigner.
  • Partner’s IIT. The Chinese PE fund is growing very quickly since 2008. Many PEs are established in the form of limited partnership. The professionals in our individual tax team can advise the clients in the following aspects: (1) the partner’s IIT implication; (2) local IIT incentive policies analysis in different regions; (3) the choice of the establishment place of the PE.
  • Employee salary and incentive program planning. Due to the economic growth and the shortage of the senior technical personnel, professionals and management personnel, many companies are facing growing challenges for their human resource management. M&T Lawyers will assist the clients to optimize their human resource management by advising reasonable employee incentive program, with a view to retain employee and stimulate the employee’s creativity and reduce their tax liability.