China’s Individual Income Tax (IIT) Law provides the basis for taxation of employee compensation and employer withholding. These independently translated selections follow the Chinese law amended on 31 August 2018. They are not the complete statute.
Official Chinese original: 中华人民共和国个人所得税法（2018年修正）. Source reviewed: 26 October 2026. Document type: selected independent translation, not an official complete English version.
Residency and income scope — Article 1
Selected provision, independently translated: A person with a domicile in China, or without such domicile but present in China for an aggregate of at least 183 days in a tax year, is treated as a resident individual and is taxed as prescribed on income from China and abroad. A nonresident individual is taxed on income sourced in China. The tax year runs from 1 January through 31 December.
Employer application: Employers should document employee residency facts, rather than assuming tax status from nationality alone.
What counts as taxable compensation — Article 2
Selected provision, independently translated: Wages and salaries, remuneration for independent services, authors’ remuneration and royalty income form separate specified income categories. For resident individuals the first four categories are combined as comprehensive income for annual assessment; rules for nonresident individuals differ.
Employer application: Employment and independent-service arrangements must not be classified solely by contract labels.
Calculating taxable income — Article 6
Selected provision, independently translated: For a resident individual’s comprehensive income, annual taxable income is calculated after a basic annual deduction of RMB 60,000 and permitted specific deductions, additional deductions and other statutory deductions. Qualifying individual contributions to basic pension, medical and unemployment insurance and the housing fund are among the specific deductions.
Employer application: Verify eligibility and supporting documentation before applying deductions; this is not a complete payroll computation.
Who withholds tax — Articles 9 and 11
Selected provision, independently translated: The person receiving income is the taxpayer; the person or organization paying the income is the withholding agent. Where applicable, withholding agents prepay or withhold tax monthly or on each payment of comprehensive income. An annual reconciliation may subsequently be required.
Employer application: The payer needs tax identification details, consistent income categorization and withholding records.
Remittance deadline — Article 14
Selected provision, independently translated: Tax withheld monthly or on a per-payment basis must be remitted to the treasury, together with the required withholding return, by the 15th day of the following month.
Employer application: Check the filing calendar and special administrative notices before relying on a deadline in an individual case.
Primary source and related material
Read the original Chinese legal text. Related resources: IIT Implementing Regulations · HROne employer IIT guide.
This page is a non-certified translation of selected Chinese legal provisions for general information. Consult competent advisers about current rules, subsequent notices and the facts of an individual case.
