Announcement on Continuing the Policy Regarding the Final Settlement of Individual Income Tax on Comprehensive Income
Announcement of the Ministry of Finance and State Taxation Administration [2023] No. 32
August 18, 2023
To further reduce burdens on taxpayers, the policy regarding the final payment and settlement of individual income tax on comprehensive income is hereby announced as follows:
For comprehensive income obtained by a resident individual between January 1, 2024 and December 31, 2027, if the annual comprehensive income does not exceed CNY 120,000 and there is outstanding tax to be settled through the final settlement, or the outstanding tax to be settled on such income through the annual final settlement does not exceed CNY 400, the resident individual may qualify for an exemption from the final settlement of individual income tax on comprehensive income. This exemption does not apply if a withholding agent failed to withhold and pay taxes on comprehensive income obtained by a resident individual at the time when the latter obtained the income.
The Announcement is hereby given.
