China’s annual individual income tax (IIT) return, also called the annual IIT reconciliation or zonghe suode niandu huisuan (综合所得年度汇算), allows eligible resident taxpayers to compare their final annual tax liability with the IIT already withheld or prepaid during the year. Depending on the result, the taxpayer may claim a refund, pay additional tax, or have no further action to take.
For the 2025 tax year, the regular filing period was March 1 to June 30, 2026. That window has now closed. Taxpayers who missed a required filing should check the appropriate correction or late-filing process with the tax authority rather than assume they can wait for the next annual return. Employers need reliable monthly withholding and year-end records to support employees through reconciliation; HROne’s China Payroll Outsourcing services can support employer-side payroll and IIT administration within the agreed scope.
This guide explains who must file, the RMB 120,000 and RMB 400 exceptions, how to calculate a refund or additional payment, how to use China’s tax-filing channels, and what changes for foreign employees and expatriates.
China Annual IIT Return at a Glance
| Question | Answer |
|---|---|
| What is reconciled? | A resident individual’s annual comprehensive income and the income tax already prepaid or withheld. |
| Which tax year? | The calendar year in which the relevant income was received, subject to applicable income-recognition rules. |
| When was the 2025 return due? | March 1–June 30, 2026. |
| Does everyone need to file? | No. The result and applicable exceptions determine whether filing is required. |
| Who files? | The taxpayer personally, through an authorized employer, or through an authorized professional or other agent. |
| Where? | Usually via the Individual Income Tax app (个人所得税) or the Natural Person E-Tax Bureau website; other authorized channels may apply. |
The principal legal framework is the Administrative Measures for Annual Reconciliation of Individual Income Tax on Comprehensive Income (State Taxation Administration Order No. 57), which took effect in February 2025.
What Income Is Included in China’s Annual Tax Return?
For a resident individual, annual comprehensive income generally combines four categories:
- Wages and salaries;
- Remuneration for personal services (labor remuneration);
- Author’s remuneration; and
- Royalties.
These categories have their own rules for determining the income amount before the annual calculation. They should not simply be added as gross cash receipts without checking the relevant expense reductions. Business income, rental income, dividends, interest, and gains from disposing of property are not automatically added to the comprehensive-income reconciliation; they may carry separate IIT treatment or filing obligations.
A separately taxed annual bonus or certain qualifying equity incentive income may also need distinct treatment. Review the applicable election and conditions rather than automatically including every award in annual comprehensive income. For general IIT rules and rates, see HROne’s China Individual Income Tax guide.
Who Needs to File an Annual IIT Return in China?
The first question is not whether salary exceeds RMB 120,000. It is whether the individual is covered by the resident comprehensive-income reconciliation rules, what the final calculation shows, and whether a statutory exception applies.
When Filing Is Required
Under Order No. 57, a resident individual generally needs to complete annual reconciliation when:
- They are entitled to an IIT refund and want to claim it;
- The final annual tax exceeds tax already prepaid and no filing exemption applies; or
- Income was omitted or understated because the income category was misclassified, tax was not properly withheld, or comprehensive income had no withholding agent.
When Filing May Not Be Required
If comprehensive-income tax has been properly prepaid, filing is generally unnecessary when the final tax equals the prepaid tax or when a taxpayer qualifies for a refund but decides not to request it.
In addition, a time-limited policy through the 2027 tax year generally permits eligible resident individuals to skip reconciliation when they owe additional tax but either:
- Annual comprehensive-income receipts do not exceed RMB 120,000; or
- The additional tax due does not exceed RMB 400.
Important exception: These RMB 120,000 / RMB 400 exemptions do not apply where a withholding agent failed to withhold or prepay tax as legally required. They are also not general IIT exemptions: the conditions affect the obligation to carry out annual reconciliation, not whether salary is taxable. See the Ministry of Finance and State Taxation Administration Announcement No. 32 of 2023.
| Situation | Typical outcome | What to check |
|---|---|---|
| Taxpayer overpaid IIT and wants a refund | File to claim the refund. | Income, deductions, bank details, earlier filings. |
| Final tax equals prepaid IIT | Usually no annual return required. | Whether all relevant income was correctly reported. |
| Additional tax due of RMB 300 | Potential exemption from filing. | Whether withholding was lawfully completed and other exception conditions are met. |
| Additional tax due of RMB 1,000, annual comprehensive-income receipts RMB 100,000 | Potential exemption from filing. | RMB 120,000 threshold and proper withholding condition. |
| Additional tax due of RMB 1,000, annual comprehensive-income receipts RMB 200,000 | Filing generally required. | Full annual calculation and any applicable special circumstances. |
| Relevant employment income was never reported or lawfully withheld | Correct the omission; do not rely on the small-balance exemptions. | Income source, withholding duty, taxpayer filing duty. |
Do Foreign Employees and Expatriates Need to File?
Foreign nationality does not by itself decide annual filing status. An individual without a domicile in China who meets the applicable residence test may be treated as a Chinese tax resident for that tax year. The domestic 183-day test, the source of compensation, possible foreign-income treatment, and any tax-treaty relief need separate assessment.
Non-resident individuals do not use the resident comprehensive-income annual reconciliation covered by this guide. That does not mean they are free of Chinese IIT, withholding or other filing obligations. Resident foreign employees may need annual reconciliation under the same broad framework as other residents, with additional complications for overseas-paid salary, foreign-sourced income and eligible expatriate allowances.
For mobile employees receiving compensation in more than one country, the underlying payroll, tax-residency and workday records matter. Our China expat payroll guide explains the related issues for offshore salary, split payroll and withholding.
What Was the 2026 Filing Deadline for the 2025 Tax Year?
The State Taxation Administration’s 2026 filing announcement confirmed the following timetable:
- February 25, 2026: Advance appointment booking became available for taxpayers wishing to file in the early window.
- March 1–20, 2026: Early filing appointments were available through the IIT app.
- March 21–June 30, 2026: Taxpayers could file without an appointment.
- June 30, 2026: End of the regular reconciliation and additional-tax payment period.
The usual legal window for a tax year’s comprehensive-income reconciliation is March 1 to June 30 of the following year. Accordingly, 2026 income will ordinarily be reconciled in 2027; check the official 2027 announcement for that year’s appointment arrangements.
Under Order No. 57, a non-domiciled taxpayer leaving China before the filing period begins may be able to reconcile before departure.
If a required 2025 return was missed, the taxpayer should promptly review the outstanding obligation through the tax authority’s official channels. A late filing is not made compliant simply by waiting until the next filing season.
How Is an Annual IIT Refund or Additional Payment Calculated?
Annual reconciliation compares the final IIT payable on qualifying comprehensive income with the IIT already prepaid during the year. The calculation generally follows:
Annual taxable income = annual comprehensive-income amount − RMB 60,000 standard deduction − eligible social insurance and housing-fund deductions − eligible special additional deductions − other lawful deductions − qualifying charitable donations.
Annual IIT payable = annual taxable income × applicable progressive rate − quick deduction − applicable tax reductions.
Refund or additional tax = annual IIT payable − IIT already prepaid. A negative balance represents a potential refund; a positive balance represents additional tax subject to any filing exemptions.
Worked Example: RMB 1,320 IIT Refund
Assume a Chinese tax-resident employee has RMB 180,000 of annual comprehensive-income amount from salary, has RMB 24,000 of qualifying employee social insurance/housing-fund deductions and RMB 24,000 of eligible special additional deductions. Assume no other deductible items or tax relief, and that RMB 6,000 of IIT was already withheld during the tax year.
| Calculation item | RMB |
|---|---|
| Annual comprehensive-income amount | 180,000 |
| Annual standard deduction | −60,000 |
| Eligible statutory employee deductions | −24,000 |
| Eligible special additional deductions | −24,000 |
| Annual taxable income | 72,000 |
| IIT at 10%, less RMB 2,520 quick deduction | 4,680 |
| IIT already prepaid | −6,000 |
| Potential refund | 1,320 |
Here, the final calculated IIT is RMB 4,680, but RMB 6,000 was prepaid. If eligible and correctly reported, the employee may submit an annual reconciliation to claim the RMB 1,320 difference.
If the same employee had prepaid only RMB 4,000, the calculation would instead show an additional RMB 680; the applicable filing-exemption rules would then need to be assessed. The rates used in this example come from China’s statutory comprehensive-income IIT rate schedule.
What Documents Should You Prepare?
Before starting the return, taxpayers should check the accuracy of information already held by the tax authority. Useful records include:
- Valid identification and tax registration details, including passport information where applicable;
- Contact number and an accessible IIT app or Natural Person E-Tax Bureau account;
- Annual wage and salary records from each employer, plus relevant labor remuneration, author’s remuneration and royalty income;
- IIT withholding or prepayment records and supporting payslips;
- Evidence for eligible social insurance, Housing Provident Fund and special additional deductions;
- Other eligible deduction, donation and relief documentation;
- A qualifying personal bank account in mainland China if a refund will be requested; and
- For relevant cross-border cases, overseas income and foreign tax records, workday information and treaty-supporting documents.
Not every taxpayer needs every document. The official declaration data may already contain much of the information, but the taxpayer is responsible for checking it. Claiming a deduction without meeting its requirements can produce an incorrect refund or understated tax.
How to File China’s Annual IIT Reconciliation
Order No. 57 permits self-filing, employer-assisted filing with the necessary confirmation, or filing through an authorized professional or other agent. Digital filing is generally the simplest route for a straightforward case.
Option 1: File Through the Individual Income Tax App or Website
- Sign in. Access the official 个人所得税 (Individual Income Tax) app or Natural Person E-Tax Bureau and confirm your identity and contact details. The registration or identity-verification method for foreign passport holders may differ depending on the available system options and prior registration.
- Select the appropriate tax year. Open the comprehensive-income annual reconciliation function (综合所得年度汇算) for the correct year. Do not confuse the year income was received with the year the declaration is filed.
- Review prefilled income and tax data. Check wages, other comprehensive-income categories, withholding amounts and employers. Confirm any missing or misclassified entries against actual records.
- Review deductions and special treatment. Check eligible statutory and special additional deductions, donations and any applicable bonus or other special income treatment. Do not claim incompatible tax preferences simultaneously.
- Confirm the calculation and submit. Review the displayed final tax and refund or additional payment, make any permitted corrections, and submit the return.
- Complete the refund or payment. If a refund is approved, provide an eligible mainland Chinese bank account in the taxpayer’s name. If tax is due, pay through an approved channel and retain confirmation.
About older app screenshots: Navigation labels, authentication methods and screens can change between filing seasons. Follow the current interface and official help prompts instead of relying on screenshots from an earlier version of the app.
Option 2: Ask Your Employer to Assist
An employer can handle the reconciliation on an employee’s behalf where the required written or electronic confirmation is provided. The employer should not submit an individual’s annual return without that confirmation. Where an employee asks for assistance, the employer must handle the filing or provide training and guidance as prescribed by the governing rules.
The employee remains responsible for providing complete and truthful information about relevant income and deductions, including income that may not appear in the employer’s payroll register. Employers should reconcile payroll and withholding data, protect personal tax information and tell employees the filing result. For employer-side controls, see HROne’s China IIT compliance requirements.
Option 3: Authorize a Tax Adviser or Other Agent
Taxpayers may appoint an eligible tax professional or another authorized person or organization under a suitable authorization agreement. This can be appropriate for complex foreign-sourced income, multiple employers, disputed income records or cross-border relief claims. The authorization does not transfer the taxpayer’s duty to provide accurate information.
What If You Have Foreign-Sourced Income?
Resident taxpayers with foreign-sourced income may have separate reporting, sourcing and foreign-tax-credit issues. The old assumption that they must always visit a tax office counter is outdated. A May 2026 tax-authority explanation confirms that the IIT app supports annual comprehensive-income reconciliation involving overseas income, while noting that the Natural Person E-Tax Bureau website may provide a more suitable experience for complex cases.
Do not assume every overseas payment is taxable in China or that an overseas tax payment automatically qualifies for full credit. Review tax residency, income source, relevant foreign taxes, treaty positions and documentary evidence. For assignments and offshore remuneration, employers should coordinate information with local payroll before the filing deadline.
What Happens After You Submit?
If You Expect a Refund
A claimed refund is subject to tax-authority review; filing a return does not guarantee immediate payment. Refund applicants generally need a qualifying bank account opened in mainland China in their own name. Incorrect bank details, inconsistencies in the declared income or unresolved earlier-year tax issues can delay processing or require correction.
If You Owe Additional IIT
The additional tax normally needs to be paid by the end of the applicable annual reconciliation period. If a required return or payment was missed, the tax authority may seek the outstanding tax, applicable late-payment surcharges or administrative remedies. The result depends on the circumstances; not every mistake automatically triggers the same fixed penalty.
If Your Income or Deduction Record Is Wrong
First verify the discrepancy with the paying entity or withholding agent and request correction where appropriate. If a reported item remains disputed, use the official app or website’s applicable inquiry and complaint mechanism. Taxpayers can also correct an annual declaration when necessary. Keep evidence supporting the change.
Employer Checklist for Annual IIT Reconciliation
Even where the employee files personally, employers should be prepared to supply complete withholding and payroll information.
- Reconcile annual payroll, payslips and IIT withholding returns before the annual filing season.
- Identify late bonuses, missing payments, off-cycle corrections and incorrectly classified income.
- Check whether expatriate or overseas-paid compensation requires separate review.
- Communicate employee tax-record discrepancies and correct employer-side declaration errors.
- Explain the difference between monthly employer withholding and the individual’s annual reconciliation.
- Obtain the required confirmation before filing for an employee, and protect their personal information.
- Retain annual reconciliation income, deduction and tax-benefit supporting records for five years from the end of the filing period where Order No. 57 applies.
These are related but distinct from ordinary payroll processing. Payroll teams must continue their own monthly withholding, declaration and payment obligations regardless of whether a particular employee qualifies for an annual filing exemption.
Frequently Asked Questions
Is an annual tax return mandatory for everyone working in China?
No. The comprehensive-income annual reconciliation generally concerns resident individuals. Whether a return is required depends on refund claims, final IIT due, proper withholding and applicable exceptions. Non-residents have different IIT rules and may have other filing obligations.
Is annual income above RMB 120,000 enough to make filing compulsory?
No. The RMB 120,000 threshold relates to a specific exemption where additional tax would otherwise be due, and the conditions must be met. An individual with higher income may still have no filing requirement if all relevant tax was properly prepaid and the final liability matches it, or if another applicable exception applies.
Can someone skip filing if the additional IIT is under RMB 400?
Eligible resident individuals may be exempt from annual reconciliation where the additional tax is no more than RMB 400, under the policy currently applying through the 2027 tax year. The exemption does not apply when a withholding agent failed to withhold as legally required.
When was the deadline for the 2025 annual IIT return?
The regular filing window ran from March 1 to June 30, 2026. The early appointment period applied to returns filed between March 1 and March 20, 2026; after March 20 an appointment was not required.
Can foreigners use the China IIT app to file?
Foreign nationals who qualify for resident comprehensive-income reconciliation may use available official tax-filing channels, subject to identity verification and their particular filing circumstances. Some complex overseas-income cases may be better handled through the Natural Person E-Tax Bureau or with professional assistance.
Can my employer file the annual return for me?
Yes, subject to the required written or electronic confirmation and accurate information from the employee. An employer must not file on an individual’s behalf without the necessary confirmation; employees may also file directly or appoint an authorized agent.
What if I forgot to file and owe tax?
Review the obligation promptly using official tax channels, correct the filing where necessary and settle any outstanding tax and applicable charges. Missing the annual deadline does not cancel the liability. Where facts are disputed, seek advice before submitting an incorrect correction.
Does an annual IIT reconciliation include dividends and rental income?
Not automatically. The resident comprehensive-income reconciliation combines wages and salaries, labor remuneration, author’s remuneration and royalties. Dividends, rental income, business income and property-transfer income generally follow separate rules, even though they may still be subject to Chinese tax or reporting obligations.
Need Help With Employer-Side IIT and Payroll Records?
Annual reconciliation is easier when monthly payroll, taxable compensation, deductions and withheld IIT are accurate throughout the year. For international employers with a Chinese employing entity, HROne can support payroll administration, statutory tax calculations and employer-side reporting coordination within the agreed service scope. Contact HROne to discuss your China payroll and IIT administration requirements.
Last reviewed: October 2026. This guide concerns comprehensive-income annual IIT reconciliation and provides general information, not individualized tax or legal advice. Tax residency, income source, deductions, filing obligations and eligibility for exceptions depend on the taxpayer’s circumstances and the current rules.
