State Administration of Taxation, Strengthening the Collection of Individual Income Tax According to Audits from Investors of Such Intermediary Institutions as Law Firms Circular

Issued: September 29 2002

Main contents: The Circular stipulates that collection of individual income tax according to audits shall be applied to law firms possessing the conditions for collection according to audits (Item One). The Circular also states that the individual income tax rates of law firms shall not be lower than 25% (Item Three). Item Three also states that where the expenses on handling cases have been reimbursed by the law firm, such expenses can no longer be deducted before individual income tax by an employed lawyer.
Related legislation: State Council, Approval and Transmission of the«State Administration of Taxation, Strengthening the Administration of Tax Collection from Individual Private Economic Entities and the Collection of Tax According to Auditing Opinion» Circular, 1997; Ministry of Finance and State Administration of Taxation, Levy of Individual Income Tax on Investors in Wholly Individually-owned and Partnership Enterprises Provisions, Sep 19 2000, CLP 2000 No.10 p9 and State Administration of Taxation, Relevant Questions Concerning the Levy of Individual Income Tax on Income Received by Employees of Law Firms Circular, Aug 23 2000, CLP 2000 No.8 p9