Legislation roundup: Individual income tax and internet financing

Tax

Ministry of Finance and State Administration of Taxation, Implementing Regulations for the PRC Individual Income Tax Law (Draft Amendments for Comments)

财政部、国家税务总局中华人民共和国个人所得税法实施条例 (修订草案征求意见稿)

The Draft contains a total of 48 articles, with 25 articles amended, 19 articles deleted and 19 new articles added.

Where the consecutive number of years in which a tax-resident individual without a residence in China has resided in China for an aggregate of least 183 days is less than five, or where the consecutive number of years is at least five but, during that period, he/she was away from China for more than 30 days on one occasion, he/she shall, following record filing with the competent tax authority, pay individual income tax only on that portion of his/her income derived from outside China that is paid by an enterprise, public institution, other economic organization or tax-resident individual in China.

Ministry of Finance and State Administration of Taxation, Tentative Measures for Special Expense Deductions on Individual Income Tax (Draft for Comments)

财政部、国家税务总局个人所得税专项附加扣除暂行办法 (征求意见稿)

Where a taxpayer himself/herself or his/her spouse uses a personal housing loan from a commercial bank or housing reserve to purchase residential premises for himself/herself or for his/her spouse, the interest expenditures incurred for the initial housing loan may be deducted at the fixed rate of Rmb12,000 per year (Rmb1,000 per month) during the loan repayment term. A taxpayer shall be eligible for the deduction of interest for only one initial housing loan.

Further reading

PRC Individual Income Tax Law (7th Revision)

China Releases Long Awaited Reform to IIT Law

Banking

People's Bank of China, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission, Measures for the Administration of Anti-money Laundering and Anti-terrorist Financing by Institutions Engaging in Internet Financing (Trial Implementation)

中国人民银行、中国银行保险监督管理委员会、中国证券监督管理委员会互联网金融从业机构反洗钱和反恐怖融资管理办法 (试行)

An institution engaging in internet financing shall take sustained customer identification measures, review customers' identity documentation and transaction records, and update customer identification-related supporting documents, data and information in a timely manner so as to ensure that the transactions currently being carried out by customers match with the customer information, customer business, risk situation, etc. that are known to it.

Further reading

PRC Anti-money Laundering Law

Tentative Measures for the Administration of the Business Activities of Peer-to-peer Lending Information Intermediaries

Circular on Intensifying the Rectification of Asset Management Business Conducted Over the Internet and Launching Acceptance Check Work

A Systemic Fix for Financial Risks