China Provides Personal Income Tax Withholding and Prepayment Exemption for Individual's with Annual Income Not Exceeding Standard Annual Deduction

China's State Administration of Taxation has issued Announcement No. 19 of 4 December 2020 on the simplification and optimization of income tax withholding and prepayment for certain individuals with effect from 1 January 2021. The announcement provides that for resident individuals whose wage and salary income does not exceed CNY 60,000 in the previous year, withholding agents (generally the employer) are not required to withhold and prepay personal income tax on the individual's wages and …