IIT rules for expatriates in Hangzhou change

September 26, 2007 Posted by China Briefing Reading Time: < 1 minute

HANGZHOU, Sept. 26 – We have been seeing a lot of variations locally on how the individual income tax (IIT) regime has been administered for expatriates, and Hangzhou, just west of Shanghai, is a perfect example of this.

Previously in Hangzhou, it was permissible to have an agent, not related to the individual’s employment, report the individual’s monthly IIT filings to the local tax bureau. This allowed an expatriate to “hide” the complete make-up of his salary from his companies local payroll officer should he want to.

However, beginning in the month of October, monthly IIT filings will not be able to be handled by third parties and must instead be handled by the expatriate’s payroll department.

This is just on of a raft of changes that we have seen taking place locally throughout China concerning IIT. For more information on changes taking place in Shenzhen, Dongguan, and other places in the country, please see the relevant regional pages of this site.

For business advisory services, assistance establishing, structuring or operating a business and contract drafting in Hangzhou, please contact Helen Ye in the Hangzhou office of Dezan Shira & Associates, tel. [571] 5685 9956.