Annual IIT Tax Returns Underway
The Annual IIT Tax Return (hereinafter as Annual Filing) began on 1st March 2025. If you are new to the workforce or expatriates who have just arrived in China and are not yet familiar with the process and the APP system, bookmark this article, and we will guide you to understand!
Every year, the State Administration of Taxation (SAT) issues an Announcement on matters concerning the consolidated filing of individual income tax returns on comprehensive income for the previous fiscal year. This year, the SAT released a Q&A Notice with a complete explanation.
What is Annual Filing
The purpose of Annual Filing is to identify the remaining gaps, aggregate income and expenditure, and refund and compensation by reviewing the previous year.
#Further Notes:
The scope and content of the annual accounting refer only to the four items of income, such as wages and salaries, remuneration for labor, remuneration for manuscripts and royalties, which are included in the scope of comprehensive income.
The classified income, such as interest, dividend, bonus income, and property rental income, is not included in the Annual Filing.
Who needs to do the Annual Filing
The subject of Annual Filing applies only to residents under the Individual Income Tax Law. Non-resident individuals are not required to submit an Annual Filing. Annual Filing is necessary when the usual amount of tax prepaid by the taxpayer does not match the amount of tax due for the year.
#Three Categories:
- Taxpayers whose prepaid tax is higher than the tax payable and who need to apply for a tax refund.
- Taxpayers whose prepaid tax is less than the tax payable, and they should make up the tax, and the amount of the tax refund is more than RMB 400.
- Taxpayers/employers who have made errors in declaration or withholding and other special circumstances, resulting in under-declaration or non-declaration of consolidated income for the year.
Who does not need to do the Annual Filing
Taxpayers are exempt from Annual Filing if they meet one of the following conditions:
- whose comprehensive income does not exceed RMB 120,000 for the year.
- whose Annual Filing is required to pay tax not exceeding RMB 400.
- whose tax payable is equivalent to the prepaid tax.
- Whose prepaid tax is higher than the tax payable but voluntarily waive the refund.
When to do Annual Filing
The Annual Filing period for YR2024 is 1st March to 30th June 30th.
Among them, taxpayers who do not have a residence in China can apply for annual remittance before departure if they leave the country in advance.
First Stage — From March 1 to March 20
For the specific taxpayers who urgently need priority processing (those who are in between generations, or those who have a heavy burden of medical care), a reservation channel for the mobile IIT APP is launched, and after making the reservation, they can submit this filing on any day in the above period.
Second Stage — From March 21 to June 30
Other taxpayers do not need to make a reservation and can apply for this filing at any time during the above period. Taxpayers without special urges are advised to avoid the peak of annual filing at the early stage mentioned above.
Preparation before Annual Filing
Taxpayers should confirm the validity of the basic information filled in, such as identification numbers, contact numbers, and bank accounts. Expatriates will need to bring passports to the nearest tax office to claim the access code for logging into the APP for the first time.
Taxpayers can check for any special additional deductions that have not yet been registered, or for other income for the year. After confirming these details, taxpayers can begin their Annual Filing and follow the system step by step. For further detailed guidance, please see the Manual.
If you have questions regarding how to handle tax refunds or makeup, please find our previous sharing: www.serviceonnewgrounds.com
If you have any other questions, please get in touch with us.
