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Proposed IIT Reform

Geezer (1927 posts) • 0

KPMG is one of the Big Four auditors, along with Deloitte, Ernst & Young (EY), and PricewaterhouseCoopers (PwC).

Seated in the Netherlands, KPMG employs 189,000 people. The name "KPMG" stands for "Klynveld Peat Marwick Goerdeler."

Geezer (1927 posts) • 0

Hope this is helpful, a pdf doc on deductions included in the IIT reform law:

Special Additional Deductions for Individual Income Tax Reform in the PRC

According to the newly revised individual income tax law, for the calculation of taxable income of individual income in the future, besides the RMB5,000 tax exemption allowance and the special deduction such as "five insurances and one fund", six special additional deductions will be added, such as children's education, continuing education, medical treatment for serious diseases, housing loan interest, housing rent and expenditure for elderly dependents.

www.lehmanbrown.com/[...]

JanJal (1029 posts) • 0

The blog article behind first link quotes situation for someone paying 50 000 RMB in monthly rent (etc) in China, which is quite rare in Yunnan.

Still a limit on annual housing deduction at 18 000 RMB would hit us here too. But I think many expats in China (especially teachers) live in housing arranged by their employers, rather than their own tax-deducted apartments.

It's probably been mentioned somewhere, but I haven't found how (for example) married couples are treated with the annual deduction limitations. Will both be allowed full deductions, or will tax authorities start tracking family connections and living arrangements more closely... somehow I don't think that they are up to the task.

Anyway, allowing same deductions for both spouses could serve purposes beyond taxation in this country. Namely getting people married and making babies.

kurtosis (86 posts) • 0

This regulation is a huge blow to the competitiveness of China's costal cities. Are there any comments or reactions by international companies? Or will they simply rent apartments as a company and allow employees to live there for free?
How about international schools?

JanJal (1029 posts) • 0

I don't necessarily think that it is a blow to competitiveness overall, just blow to foreign high-end professionals there.

Remember that these new deductions are now available also to Chinese nationals.

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