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China China Taxes Individual Income Tax Guidance on Annual Individual Income Tax Declaration 2024 in China
KNOWLEDGE|
(1) |
Additional tax is payable but annual comprehensive income does not exceed RMB 120,000 in Year 2024. |
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(2) |
Additional tax is payable due does not exceed RMB 400 in Year 2024. |
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(3) |
There is no discrepancy between annual tax withheld and annual tax payable or taxpayer does not apply for tax refund. |
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(1) |
Where the tax amount withheld is more than the amount of annual tax payable, and taxpayer seeks to apply for tax refund. This could arise from: (a) The annual comprehensive income in year 2024 is less than RMB60,000, but certain amount of the individual income tax has already been withheld for the taxpayer. (b) The rate at which tax is withheld on of income from labour remuneration, author’s remuneration and loyalties is higher than that charged at comprehensive income. (c) At the time when tax is withheld to the allowable deductions, special deductions, special additional deductions and other deductions allowed determined by the laws, have not been fully deducted from the taxable income. |
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(2) |
Where the annual comprehensive income in year 2024 more than RMB120,000 and additional tax payable is more than RMB400. This could result from: (a) A taxpayer derives his comprehensive income from two or more places, and the applicable tax rate is increased after all income are combined. (b) Due to income type wrongly applied, or the withholding agent fails to perform the withholding obligation, or there is no withholding agent, which result in the tax amount prepaid is lower than the amount of actual tax payable for the whole year. |
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(1) |
Taxpayers shall complete their annual tax declarations for 2024 during the period from 1 March 2025 to 30 June 2025. |
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(2) |
Taxpayers who need to proceed the annual declaration at the very beginning (From 1 to 20 March 2025) may make an appointment on any of the above days through IIT APP after 21 February 2025. Taxpayers can proceed the annual declaration from 21 March to 30 June 2025 without appointment. |
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(3) |
Taxpayers who does not domicile within the territory of China and will leave China before schedule may proceed the annual declarations before departure. |
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(1) |
Taxpayers shall provide the particulars of a bank account opened within the territory of China when applies for annual tax declaration. Once the verification process is completed, the tax authorities accepting the tax declaration will pay the tax refunded to the bank account provided. |
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(2) |
Tax authorities will provide priority tax refund service for taxpayers whose comprehensive income in year 2024 are less than RMB 60,000 and have prepaid their individual income tax, and taxpayers who meet the requirements for tax refund and with heavy living burden. |
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(3) |
In the case where additional tax is to be paid, taxpayers can make payment through online banking, tax service offices, bank counter, non-bank payment institutions, etc. |
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(1) |
Expense RMB60,000, eligible basic pension insurance, basic medical insurance, unemployment insurance and other social insurances, housing provident fund; |
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(2) |
Critical illness medical expenses incurred in 2024 by the taxpayer, his / her spouse and minor children under the age of 18; |
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(3) |
The special additional deductions, including children's education, continuing education, housing mortgage interest or housing rent, elderly care that the taxpayers have not yet deducted or only partly deducted from their taxable income; |
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(4) |
Taxpayer's eligible charitable donations in year 2024; |
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(5) |
Other eligible deductions in 2024 including enterprise annuity, occupational annuity commercial health insurance and personal pension. |
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5.1 |
Those taxpayers who have any deductable items that meet the above conditions, but have not applied for the deduction yet, they are reminded to upload the relevant information in time when proceeding their annual individual income tax declarations. Or they should provide the detailed relevant information to Kaizen (in case that Kaizen is appointed to handle the annual individual income tax declaration). |
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5.2 |
The regulations on public welfare donation are as follows: (1) Article 6 of the Individual Income Tax Law of the People's Republic of China: Where an individual donates his/her income to public welfare and charitable causes such as education, poverty alleviation and relief, the donated amount can be deducted from his/her taxable income. The amount of deduction however should not exceed 30% of taxable income as declared by the taxpayer. (2) Article 19 of the Regulations for the Implementation of the Individual IIT Law of the People's Republic of China: Donations by individual towards education, poverty relief and other public welfare charities causes, refers to the donation made by individuals to education, poverty relief and other public welfare charities, through social organizations or government agencies within the territory of China. |
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(1) |
Taxpayers can handle the annual tax declarations by themselves. |
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(2) |
Taxpayers can authorize their employers (including entities who withhold Individual Income Tax for remuneration on cumulative calculation basis) to handle the annual tax declarations. * Where taxpayers request the withholding agent to act on behalf of them, the withholding agent shall do so or shall train and assist the taxpayers to proceed the annual declaration; Taxpayers shall proceed written or electronic confirmation with the withholding agent if the annual declaration is handled by the employers. |
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(3) |
Taxpayers can appoint any professional tax services provider or other units or individuals to handle the tax declaration. In this case, a written authorized letter shall be signed. * Taxpayers shall provide information regarding the comprehensive income from sources other than their employers, relevant deductions, tax benefits and other data in 2024, and be responsible for its authenticity, accuracy and completeness. The withholding agents or authorized persons shall, in a timely manner, inform the taxpayers of the information declared after the annual tax declaration is completed. If a taxpayer notices error or omission in his return, he may request his withholding agent or the authorized person to amend it or he can request the tax authority to amend it. |
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(1) |
Taxpayers may proceed the annual tax declarations through IIT APP or individual tax system. The tax authority will provide the pre - filled declaration forms for the taxpayers. |
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(2) |
Taxpayer may post their declaration forms to the competent tax authorities (please refer to point 9 below), or go to the tax service offices to file their declarations in person. |
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(1) |
Where taxpayers proceed the annual tax declaration themselves or entrust other agencies to proceed, the declaration shall be filled with the competent tax authorities where the employers are located; Where taxpayers have 2 or more employers, they may choose to report to one of the competent tax authorities. |
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(2) |
Where the annual tax declaration is to be proceeded by the withholding agent, the declaration shall be proceeded with the supervising tax authority of for the withholding agent. |
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(3) |
Where taxpayers with no employer shall report to the competent tax authorities where they have the main source of income, place of domicile or habitual residence ("main source of income" refers to location of the withholding agent who paid the largest amount of cumulative payment to the taxpayers for labour remuneration, authors remuneration and royalty in 2024). |
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Annex 1: Comprehensive Individual Income Tax Withholding Rates Schedule |
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Grade |
Cumulative Taxable Income (RMB) |
Tax Rate % |
Quick Deduction |
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1 |
Less than 36,000 |
3% |
- |
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2 |
More than 36,000 and less than 144,000 |
10% |
2,520 |
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3 |
More than 144,000 and less than 300,000 |
20% |
16,920 |
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4 |
More than 300,000 and less than 420,000 |
25% |
31,920 |
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5 |
More than 420,000 and less than 660,000 |
30% |
52,920 |
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6 |
More than 660,000 less than 960,000 |
35% |
85,920 |
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7 |
Over 960,000 |
45% |
181,920 |
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Reference Materials: |
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1. [Our China Taxation Services] |
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2. [Our China Book-keeping and Accounting Services] |
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
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