Tuesday, December 18, 2007

Learn Chinese - Circular of the State Administration of Taxation on Intensifying the

Administration of Archival Materials concerning the Individual Income Tax
on Foreigners

BIZCHINA / Taxation

Circular of the State Administration of Taxation on Intensifying the
Administration of Archival Materials concerning the Individual Income Tax
on Foreigners

Updated: 2006-04-18 10:24

Guo Shui Han [2006] No. 58

The local taxation bureaus of all provinces, autonomous regions,
municipalities directly under the Central Government, and cities as
specifically designated in the state plan

With a view to intensifying and regulating the collection and
administration of individual income tax on foreigners (including people
from Hong Kong, Macao and Taiwan as well as overseas Chinese, hereinafter
the same), you are hereby notified of the relevant requirements for the
administration of archival materials concerning the individual income tax
on foreigners as follows:

I. Establishing an Account for Foreigners by Enterprise as the Basic Unit

With regard to those enterprises that employ foreigners within
jurisdiction, the tax authority at the grass-root level shall establish
an administration account for foreigners by enterprise regardless of how
many foreign employees there are or whether or not relevant foreigners
take their jobs for a long term or only temporarily. An administration
account for foreigners shall include such information of the relevant
foreigners as name (Chinese and foreign language), nationality, post and
tenure.

II. Adopting the Administration Method of "One Archive for One Person" on
the Basis of the Administration Account

The tax authority at the grass-root level shall, on the basis of the
administration account for foreigners by enterprise, adopt the
administration method of "one tax return archive for one person". An
individual account shall include such information as: name (in Chinese
and foreign language), gender, birth place (in Chinese and English),
birth date, overseas domicile (in Chinese and English), name of the
entity that has dispatches him, tenure of office in China or period of
labor service, post, period of residence, time of entry into or exit out
of China, resident address in China, phone number, postal code, amount of
income, payment place, withholding agent, amount of tax declared, amount
of tax payable, amount of tax paid and time of turning over the tax into
the state treasury.

III. Dynamic Administration

Dynamic administration shall be applied to the administration accounts
for foreigners by enterprise as well as to the individual archives of
foreigners, which shall be updated according to the increase or decrease
of the number of foreigners, change of posts, period of residence, time
of entry into or exit out of China and change of incomes so as to carry
into effect the scientific and fine administration over the individual
income tax on foreigners.

IV. Examination of the Established Accounts

All regions shall, according to the requirements of the State
Administration of Taxation, improve by themselves the relevant mechanism
and intensify the administration of archival materials by the end of
June, 2006. Any region that fails to meet the requirement of the State
Administration of Taxation of "establishing accounts by enterprise and
establishing archives by individual " shall establish relevant rules and
system as required as soon as possible so as to realize the objective of
"administration by means of accounts and one archive for one person". All
regions shall summarize their improvement on the administration of
archival materials concerning the individual income tax on foreigners,
which shall be reported to the State Administration of Taxation
(Department of International Taxation) by July 31, 2006.

The State Administration of Taxation shall examine and summarize the
administration of archival materials concerning the individual income tax
on foreigners from July to December of 2006. The examination result will
be circulated.

State Administration of Taxation
January 23, 2006

Promulgated by the State Administration of Taxation on 2006-1-23

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