China - Amended Individual Income Tax Law

Global Watch ()

There were a lot of public discussions and debates over the draft amended "Individual Income Tax Law of the People’s Republic of China" ("IIT Law") (please refer to our Global Watch released in May 2011 for details of the draft amended IIT Law) since it was released by the Standing Committee of the National People’s Congress ("NPC") for public consultation in late April this year. The NPC finally approved the amended IIT Law on June 30, 2011 (with changes made to the draft amended IIT Law in response to the public comments), which will take effect on September 1, 2011.

In this Issue, we will highlight the key changes under the amended IIT Law and share our observations on the impacts to both employers and employees.