China Considering Individual Income Tax Reform

According to recent reports, China's National People's Congress is considering draft individual income tax reform amendments to provide fairer income distribution. This would include:

• An increase in the standard deduction from CNY 3,500 to CNY 5,000 per month (CNY 60,000 per year) for resident taxpayers receiving wage/salary income domestically and from abroad and for non-resident taxpayers receiving income in China, with the current CNY 4,800 deduction for foreign workers removed;
• The intro…