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Starting from 1 January 2020, the procedures to claim benefits (e.g. reduced withholding tax rate, etc.) under Mainland China’s tax treaties will be simplified, which are from filing relevant documents with Chinese tax authority for record upon declaration to retaining relevant documents for follow-up administration by the Chinese tax authority. The salient features of the new procedures are as follows:

Hong Kong has signed comprehensive double taxation agreement (CDTA) with Macao SAR and Estonia on 25 November 2019 and 25 September 2019 respectively. This brings the number of CDTAs Hong Kong has concluded with other jurisdictions to 43, out of which 40 are effective and the remaining 3 (i.e. Cambodia, Estonia and Macao SAR) will become effective after all relevant ratification procedures are completed.  It is expected that Hong Kong will sign more and more CDTAs with other jurisdictions.  There are 13 CDTAs under negotiation between Hong Kong and Bahrain, Bangladesh, Cyprus, Georgia, Germany, Israel, Maldives, Mauritius, Nigeria, North Macedonia, Norway, Serbia and Turkey.

Hong Kong has signed a comprehensive double taxation agreement (CDTA) with Cambodia on 26 June 2019. This brings the number of CDTAs Hong Kong has concluded with other jurisdictions to 41, out of which 37 are effective and the remaining 4 (i.e. Saudi Arabia, India, Finland and Cambodia) will become effective after all relevant ratification procedures are completed.  It is expected that Hong Kong will sign more and more CDTAs with other jurisdictions.  There are 14 CDTAs under negotiation between Hong Kong and the following jurisdictions:

The release of announcements on Individual Income Tax (IIT) law in China has sparked a discussion on how companies with offices in China and individuals working there should adapt to these drastic changes. The amendments are so vast, that the current IIT reform is already considered the biggest in 38 years. The new rules took full effect on 1 January 2019, they will regulate the use of taxpayer identification number, tax residence rule, guidelines on additional itemised deductions, comprehensive income tax, annual reconciliation filing, preferential tax treatments, etc.

In this seminar we will share with you our analysis and interpretations of the PRC Individual Income Tax Reform 2019 and its impact on foreign expatriates working in China.