State Administration of Taxation, Measures for Filing Tax Returns for Individual Income Tax Personally (Trial Implementation)

Promulgated: November 6 2006
Effective: The filing of tax returns for individuals with an annual income of at least Rmb120,000 shall be effective from January 1 2006 (Article 43) while that under the circumstances specified in Items Two to Four of Article 2 shall be effective from January 1 2007 (Article 44).

Main contents: The Measures comprise eight parts and 44 articles clarifying the specific operational procedures for filing tax returns personally by specifying the basis for formulating the Measures, the parties required to file tax returns, the details to be filed, the places, time limits and methods for filing, the administration of tax-return filing, legal liability and the effective dates. A taxpayer who bears tax payment obligations according to the PRC Individual Income Tax Law shall file tax returns under one of the following circumstances: (1) he/she has an annual income of Rmb120,000 or more; (2) he/she derives income from wages and salaries from two or more sources in China; (3) he/she derives income from outside China; or (4) he/she derives taxable income but does not have a withholding agent (Article 2). A taxpayer with an annual income of Rmb120,000 or more shall, regardless of whether individual income tax on various income has been paid in full, file a tax return to the competent tax authority after the end of a tax year (Article 3). Taxpayers specified in Items Two to Four of Article 2 shall file tax returns with the competent tax authority after receipt of income (Article 3). The definition of the term "a taxpayer who has an annual income of Rmb120,000 or more" does not include individuals who are not domiciled and reside for less than one year in China in a tax year. The definition of the term "a taxpayer who derives income from outside of China" refers to individuals who are domiciled in China or who are not domiciled but have resided in China for at least one year in a tax year (Article 4).
Related legislation: PRC Individual Income Tax Law (3rd Revision), Oct 27 2005, CLP 2006 No.9 (CLP website); PRC Law on the Administration of the Levy and Collection of Taxes (Revised in April 2001), Apr 28 2001, CLP 2001 No.5 p.12 & CLP 1995 No.3 p.12 and Implementing Rules for the PRC Law on the Administration of the Levy and Collection of Taxes (Revised)
Repealed legislation: Tentative Measures for Filing Tax Returns for Individual Income Tax Personally 1995