1．How to get the Individual Income Tax (IIT) Records?

Individual income tax records for 2019 and beyond can be obtained through the website of “Natural Person Electronic Tax Services” or the Individual Income Tax APP, and records before 2019 can be obtained through “Electronic Tax Services”. You may also visit the taxpayer service hall to fetch the records with valid identification documents.

2．What is the password of tax records for the PDF version?

The password is the last 6 digits of the ID number. If it is less than 6 digits, please add 0 before. If it contains letters, please capitalize them.

3．How to get Certificate of Chinese Fiscal Resident?

Individual taxpayers can get it through the tax service hall or the website of“Electronic Tax Services”. The materials shall be submitted are the Application Form for the Certificate of Chinese Fiscal Resident, the contracts, agreements, resolutions of the board of directors or shareholders’ meetings, payment documents and other supporting materials related to the income to be treated under the tax treaty. Individuals who have a domicile in Chin

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shall provide credentials for habitual residence in China due to residency, family and economic interests relations. The credentials shall include information such as the applicant’s identity and a description of residence situation. Individuals who have no domiciles in China but have resided for a cumulative period of 183 days within a tax year, shall provide relevant certification or explanatory materials for the physical residence in China, including entry-exit information and other materials. If you apply as a Chinese resident partner of a partnership, you shall provide the registration of the partnership. If the tax authorities of the other contracting party have the special requirements for the style of the Certificate of Chinese Fiscal Resident, they shall provide the written instructions for the special requirements and the model of the Certificate of Chinese Fiscal Resident.

4．What should I bring to get Individual Income Tax (IIT) Records in the taxpayer service hall? Can someone else do it on my behalf?

Taxpayers may go to the taxpayer service hall with their original ID to get IIT Records, or they can entrust others to get the records on their behalf with the original valid ID of both as well as the written authorization from the trustor.

5．How does a foreign individual register for the Individual Income Tax APP?

(1) Register by Face recognition (applicable to people with Resident Identity Card, Chinese passport, the Mainland Travel Permit for Hong Kong and Macao Residents, Mainland Travel Permit for Taiwan Residents, Foreigners' Permanent Residence Permit, Residence Permit for Hong Kong and Macao Residents of PRC, or Residence Permit for Taiwan Residents of PRC) is to compare the real-time collected faces and the photos retained by the Public Security Bureau, thus verified their identities. The real-name registration can be completed as soon as the verification finished.

(2) Register by license key (applicable to all certificate types)

Foreign individuals must apply for a license key from a taxpayer service hall nearby, and use this key to open an account on the website of the Natural Person Electronic Tax Services or in the Individual Income Tax APP.

6．What are the conditions for linking bank accounts to the Individual Income Tax app?

(1) The bank card must be the taxpayer's own bank account in China; (2) In order to avoid failures in tax refund, it is recommended that the bank account you intend to link is a class I account, and whether your account is a class I can be learnt by consulting through online banking or by contacting your bank directly; (3) The bank card status is normal. Avoid being in the state of cancellation, loss reporting, inactivation, limited revenue/expenditure, frozen, etc.

7．How does a foreign individual merge the individual income tax information after renewing his/her passport?

If there is any wrong filling in the identity information or the information is renewed (for example, incorrect certificate type, wrong certificate number, or changed passport number due to passport renewal, etc.), you need to contact your company’s financial staff to set your “personnel status” to “abnormal” in “personnel information collection”, click “save” and then type in correct information before submitting the current month's data. After the successful submission of the current month's data, you can bring a valid identity card to the taxpayer service hall of the competent tax authority to merge the current records with the past records under the original identification certificate.

8. What are the ways of filling in the special additional deduction information?

Fill it in the “Individual Income Tax” App by yourself; Submit it on the website of the Natural Person Electronic Tax Services by yourself; Report it to the tax authority at the taxpayer service hall by yourself; Submit it to the withholding agent who would declare it at the withholding client of the Electronic Tax Services.

9. Is tax clearance necessary before leaving the country?

If taxpayers without a domicile in China leave China before the scheduled date of the settlement of IIT, they may launch the settlement process before leaving China.

10. How does a foreign individual obtain his/her taxpayer identity number?

If you have a Chinese citizen ID number, you can use it as the Taxable Identity Number (TIN); If you do not have one, the tax authorities shall grant you a TIN. When handling tax affairs for the first time, foreign taxpayers shall present valid identification and relevant basic information to the tax authority or the withholding agent to obtain a TIN.

11. Under what circumstances will a foreign individual be recognized as a Chinese tax resident?

An individual who has a domicile in China or has no domicile but has resided in China for a cumulative period of 183 days within a tax year is a Chinese tax resident.

12. Under what circumstances will a foreign individual be recognized as a non-resident individual? What is a non-resident individual?

Non-resident individual refers to an individual who has neither domicile nor residence in China, or who has no domicile and have not resided in China for a cumulative period of 183 days within a tax year.

13. How do foreign individuals pay individual income tax if they have resided in China for a cumulative period of 183 days in a year?

Individuals who have a domicile in China, or who have no domicile but have resided in China for a cumulative period of 183 days in a tax year, are Chinese tax residents. According to the law, individual income tax shall be levied on income earned by the tax residents from within and outside the territory of China. Individuals who have no domicile in China but have resided for a cumulative period of 183 days and less than six consecutive years shall be exempted from individual income tax on income earned outside China and paid by units or individuals outside China after filing with the competent tax authorities; In the case of a leave of more than 30 days within any tax year in which the person has resided in China for a cumulative period of 183 days, the consecutive years shall be recounted.

14. What should be done if a non-resident individual without a domicile turns to be a tax resident because of extending staying days and have reached the threshold conditions?

If an individual without a domicile was prejudged as a non-resident individual and then meets resident individual conditions due to the extension of residence days, the tax withholding method for him/her shall remain unchanged within a tax year, and the final settlement shall be handled in accordance with relevant provisions on resident individuals after the end of the year. However, if the individual leaves the country in that year and is not expected to return within the same year, a final settlement of the individual income tax could be made before the leaving.

15．What should be done if a pre-determined tax resident without a domicile no longer meets the threshold conditions due to the shortened residence?

If an individual without a domicile is prejudged as a tax resident but no longer meets the threshold conditions due to the shortened residence, he/she shall inform the competent tax authority from the date of disqualification to the 15

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day after the end of the year, and his/her tax payable should be recalculated accordingly. The tax overdue shall be paid with no fine for delayed payment. If the change leads to tax refund, it shall be handled according to the provisions.

16．How are wages and salaries earned by non-resident individuals taxed?

When withholding agents pay wages and salaries, remuneration for personal services, remuneration for manuscripts and royalties to non-resident individuals, they shall withhold and remit individual income tax on a monthly or case-by-case basis as follows: For wages and salaries of non-resident individuals, the taxable income shall be the balance of monthly income minus the expense of 5,000 RMB yuan; The calculation of tax payable applies to the monthly tax rate table of non-resident individuals after conversion by month.

Tax payable = taxable income × tax rate － quick calculation deduction

17．How is remuneration for personal services earned by a non-resident individual taxed?

When withholding agents pay remuneration for personal services to non-resident individuals, they shall withhold and remit individual income tax on a monthly or case-by-case basis as follows: For remuneration for personal services of non-resident individuals, the taxable income shall be the amount of income from each case which is the balance of income minus 20% income as expense. The calculation of tax payable applies to the monthly tax rate table of non-resident individuals after conversion by month. If the income is one-off, it should be deemed as one case；if the income is continuous and comes from the same project, the amount earned within a month should be regarded as one case.

Tax payable = taxable income × tax rate - quick calculation deduction

18．What items are included in the special additional deductions?

The special additional deductions cover educational costs for children, continuing education expenses, health-care costs for major diseases, mortgage interest, rent, elderly support and care expenses for children under the age of 3.

19．Who can enjoy the deduction of educational costs for children? What and how much are the deductible costs?

Taxpayers who can enjoy the special additional deduction for educational costs for children are the children’s legal guardians, including biological parents，stepparents，adoptive parents and other legal guardians of the children. Here children means legitimate children，illegitimate children，adopted children，stepchildren，as well as the minors who are not their own children but under their guardianship. Educational costs for children can be deducted at the standard quota of 24,000 yuan per child per year (2,000 yuan per child per month).

20. Can parents with more than one child choose different deduction policies for different children?

Yes. For example, for child A, one parent can choose to deduct 2,000 yuan per month and for child B, both parents can choose to deduct at the rate of 1000 yuan per month.

21．Who can enjoy continuing education expenses deduction? What and how much are the deductible continuing education expenses?

For taxpayers, the expenses of continuing education (academic qualification/degree) in China are deductible at the standard quota of 400 yuan per month during the continuing education (academic qualification/degree) period. The deduction period for continuing education for the same academic qualification or degree shall not exceed 48 months. Continuing education expenses of professional qualifications of skilled personnel or professional qualifications of specialized technicians incurred by taxpayers are deductible at the standard quota of 3,600 yuan in the year when the relevant qualifications are received.

22．When a taxpayer is entitled to the deduction for continuing education expenses, if he/she suspends his/her study due to illness or other reasons while still retaining his/her student status, and during the winter and summer vacations organized by educational institutions pursuant to related regulations, are these periods included?

The deduction period of continuing education expenses shall not exceed 48 consecutive months, including the suspension of schooling without losing one’s status as a student due to illness or other reasons, as well as the summer and winter vacations.

23．Can I enjoy deduction for continuing education expenses if I have continuing education (degree) abroad, or if my certificate of skill is issued by a foreign institution?

No, you can’t. Taxpayers can enjoy continuing education expenses deduction for academic qualifications or degrees received only within China, as well as continuing education expenses of professional qualifications of skilled personnel or of specialized technicians in accordance with the provisions.

24．Who can enjoy health-care costs for major diseases? What are the policy’s scope and deduction standards?

Within a tax year, medical expenses incurred by a taxpayer that are relevant to the basic medical insurance, the part of which paid by the taxpayer (those are to be borne by individuals under the medical insurance catalogue) and in excess of 15,000 yuan in total is deductable within the quota of 80,000 yuan per year as what actually incurred during the period of individual income tax settlement.

Medical expenses incurred by a taxpayer are deductible from the taxable income of either the taxpayer or his/her spouse; medical expenses incurred by a minor may be deducted from the taxable income of either parent of the minor. The deduction amounts for the medical expenses incurred by a taxpayer, his/her spouse and underaged child can be calculated separately.

25．Are the health-care costs in private hospitals deductible?

For private hospitals included in the medicare settlement system, taxpayers can enjoy a deduction concerning health-care costs for major diseases on the expenditures in relation to basic medical insurance in accordance with the regulations, as long as the expenses incurred by taxpayers for medical treatment can be reflected and aggregated in the medicare system.

26．Who can enjoy the deduction for mortgage interest? What are the policy’s scope and standards?

A taxpayer or his/her spouse or both who have purchased a household within China for the taxpayer or his/her spouse with an individual mortgage applied alone by the taxpayer or jointly by the couple from a commercial bank or from the Housing Provident Fund can deduct the costs incurred from the payment of mortgage interest for first-time household buyers at a fix amount of 1,000 yuan per month for the years in which the mortgage actually occurs, provided that the deduction period does not exceed the maximum of 240 months.

A taxpayer can only enjoy the deduction for mortgage interest on a housing loan for first-home buyers once. The costs of mortgage interest may be deducted from the taxable income of either of the spouses upon mutual agreement between them. Once determined, the specific deduction method can not be changed within one tax year.

27．Who can enjoy rent deduction? What are the policy’s scope and standards?

Rent expenses incurred by taxpayers and their spouses who do not own a household in their most frequent working city are deductible in accordance with the provisions of the special additional deduction for rent. The one who has entered into a rental housing contract can enjoy the rent deduction. If the couple work in the same  city in most occasions, only one of them can deduct the expenses. If not, while each side does not own a household in his/her most frequent working city, they can both have deductions accordingly. The couples are not allowed to enjoy the deduction for mortgage interest and rent separately at the same time. The detailed deduction criteria are as follows: (1) for municipalities directly under the Central Government, provincial capitals (capital cities), cities specifically designated in the status plan and other cities approved by the State Council, the deductible amount is 1,500 yuan per month; (2) for cities other than those listed in the point(1), the deductible amount is 1,100 yuan per month for cities with a registered population of more than one million in the municipal area; for cities with a registered population of less than one million in the municipal area, the deductible amount is 800 yuan per month.

28．Can I take deductions for shared accommodation?

Housing rent is deductible by the tenant who signs the rental contract. Therefore, individuals (with non-marital relationship) who share a rental property and have both signed a normative rental contract with the lessor can each deduct the fixed amount according to the regulations respectively.

29．Who can enjoy deductions for elderly support? What are the scope and deduction standard for the deduction hereof?

The one who can enjoy deductions for elderly support includes: I. all children who have the obligation to support their parents. The Marriage Law stipulates that children born in or out of wedlock, adopted children and stepchildren have the obligation to support their parents. II. the grandchildren who have the obligation to support their grandparents whose children are all deceased. Taxpayers who support their parents aged sixty or above and grandparents aged sixty or above whose children are all deceased are eligible for the deduction policy. The detailed deduction criteria are: (1) for a single child,  a quota of 3,000 yuan per month is deductable; (2) for a child with siblings, the quota of 3,000 yuan per month should be shared with his/her siblings, with the maximum shared quota for a single taxpayer not exceeding 1,500 yuan per month.

30. If a non-resident individual qualifies to become a resident individual, can he/she deduct the expense of elderly support when calculating individual income tax?

If a non-resident individual qualifies to become a resident individual, he/she can enjoy the special additional deduction for elderly support when doing annual settlement of individual income tax.

31. Who can enjoy deductions for the care expenses for children under the age of 3? What are the scope and deduction standard for the deduction hereof?

Expenses related to the care of children under the age of 3 are deductible at a quota of 2,000 yuan per month per infant. Parents can choose to have one of them deduct one hundred percent of the quota, or both parents deduct fifty percent of the quota. Once the deduction method is determined, it cannot be changed within a tax year.

32. When can the eligible taxpayers apply for the special additional deduction?

With the exception of the healthcare costs for major diseases, other special additional deductions are available to taxpayers who meet the conditions for one or more of these deductions during the tax year after providing relevant information to the withholding agents of their salaries and wages. Taxpayers who apply for the deductions of healthcare costs for major diseases, and who did not enjoy or fully enjoy the deductions during the tax year, can file the relevant special additional deduction information to the tax authorities and enjoy the deductions when doing annual settlement for individual income tax from March 1st to June 30th in the following year.

33．How to submit information regarding the special additional deductions?

Taxpayers can submit their special additional deduction information to withholding agents or competent tax authorities through remote tax terminals, electronic or paper tax returns, etc.

34．How should I claim the special additional deduction if I have two employers?

If a taxpayer has more than one employer at the same time, for the same special additional deduction item, he/she can only choose one of them for the deduction in a tax year.

35．For taxpayers who choose to have their special deduction application submitted through the withholding agent, if the special additional deduction information changes, how should it be handled through the Individual Income Tax App or the website of “Natural Person Electronic Tax Services”?

Taxpayers can update it by themselves through Individual Income Tax app or the website of “Natural Person Electronic Tax Services”, and then notify their withholding agents to download the updated special additional deduction information by clicking [下载更新] [download and update] in the their withholding system.

36. How to caculate the departure tax refund?

It is based on the amount of the VAT invoice (including VAT) of the tax-free goods. The tax refund rate is 11%, and the calculation for refundable VAT amount is as follows:

Refundable VAT amount = the amount of the sales invoice of the departing tax-refundable goods (including VAT) × refund rate

Actual refundable VAT amount = refundable VAT amount － service fee for tax refund charged by tax refund agencies

Since April 1, 2019, the tax refund rate has been 11% for overseas travelers' purchases of tax refundable items subject to a 13% tax rate, and 8% for overseas travelers' purchases of departure tax refund items subject to a 9% tax rate.

37. How could the overseas travelers apply for tax refund when departing from China?

There are three steps: travelers obtaining the invoice, verification and confirmation by the Customs, and review and refund by agencies.

(1) Before leaving mainland China, overseas travelers who need to apply for a tax refund after purchasing tax-free goods in tax-free stores shall ask the tax-free stores for the Refund Application Form and VAT invoices.

(2) When overseas travelers leave the country at the port of departure, they shall take the initiative to declare to the Customs with tax-free goods, the Refund Application Form, and the invoices, and accept the supervision of the Customs.

(3) Before proccessing the tax refunds, tax refund agencies who received applications from overseas travelers must first collect the valid identity information of the overseas travelers, verify the following items, then process the tax refund according to the opinion of the Customs:

A. The information of departure tax refund is integral;

B. The information of the overseas travelers contained in the Refund Application Form is consistent with the information of the valid identity documents;

C. The Refund Application Form has been verified and signed by the Customs;

D. The departure date is not more than 183 days from the last entry date;

E. The purchase date of the tax free goods is not more than 90 days from the departure date;

F. The Refund Application Form is consistent with the information in the Management System of Departure Tax Refund.

38. Notices of Departure Tax Refund Service in Shanghai:

(1) All tourists shall go through the Customs verification process for tax refund in accordance with the regulations when leaving mainland China.

(2) Tourists can choose to put the tax refund related documents into the exclusive mail-boxes for Buy & Refund Service at departure port to confirm and process tax refund without queuing and face-to-face contacts.

(3) If the requirements for Buy & Refund Service are not met, the tax refund agency will deduct the fee through pre-authorization. If the general requirements for common departure tax refund are met, tourists still can go through the general process to get the tax refund.

39. Do non-resident enterprises (hereinafter referred to as taxpayers) established in accordance with the laws of foreign countries (regions) and whose places of effective management are not located in China, but have establishments or places of business in China, need to make final Enterprise Income Tax (EIT ) settlement only when they have made profits?

Non-resident enterprises established in accordance with the laws of foreign countries (regions) and whose effective managements are not located in China, but have establishments or places of business in China, are required to make final EIT settlement regardless of making profit or incurring loss.

40. When is the time limit for the final settlement of non-resident EIT?

The taxpayer shall file the annual tax return for EIT to the tax authorities within 5 months from the end of the fiscal year, make the final settlement, and settle the payable and refundable taxes.

In case of termination of business in the middle of a year, the taxpayer shall file the final settlement of EIT of the current period to tax authorities within 60 days from the date of actual termination of business.

41. What conditions need to be met for non-resident enterprises to choose consolidated tax filing?

Non-resident enterprises which choose consolidated tax filing shall meet all of the following conditions throughout the taxable year:

(1) The establishments or places have registered in competent tax authorities and obtained their taxpayer identification numbers;

(2) The main establishments or places of business shall comply with the provisions of Article 126 of the Regulations for the Implementation of the Corporate Income Tax Law, and all the establishments and places of business which choose consolidated tax filing shall not  calculate and pay EIT under verification collection scheme;

(3) The establishments and places of business shall accurately allocate their tax payments according to the STA Public Notice [2019] No.12, and file their tax return to their competent tax authorities of the location as required.

42. How to make final settlement of non-resident enterprises?

Taxpayers can log in the website of Electronic Tax Services of Shanghai, or go to the tax service hall to make final settlement.

(1) Online software (eTax@SH 3)

(2) Electronic Tax Services of Shanghai---Annual Tax Return of EIT for Non-resident  (2019 version)