in the sixth year

IIT is normally withheld from wages or salaries by employers and paid to the tax authorities on a monthly basis (within 15 days of the end of each month). At the end of the year, an annual IIT declaration should be submitted to tax authorities within three months of the end of the previous calendar year (i.e., between January 1, 2012 and March 31, 2012 for the 2011 calendar year). Penalties for late filing can be up to five times the amount that was due. Annual IIT declarations should be filed for taxpayers who are subject to IIT in China and meet at least one of the following five conditions: .Have an annual income of more than RMB120,000 .Derive income from two or more places inside the Peoples Republic of China .Derive income from sources outside the Peoples Republic of China .Received taxable income for which there is no withholding agent .Other conditions regulated by the State Council What is considered annual income? Wages and salaries Income from individually-owned industrial and commercial households Income from subcontracting or subleasing Remuneration for labor services Authors remuneration Incomes from royalties Incomes from interests, stocks dividends and bonuses Incomes from lease, transfer of property Incidental incomes How does IIT apply to expatriate income?If an individual is paid by a China-based entity, any income derived from working in China will be taxable. For non-China sourced income or income paid by overseas employers, tax liabilities for foreigners generally depend on the period of time an individual spends in China. Individuals who spend less than 90 days (or 183 days for residents of countries that have signed a double taxation treaty with China) in one calendar year in China are exempt from IIT if the employment income is paid by an overseas entity. Individuals who stay in China for more than 90 (183) days, but less than a year, are subject to personal income tax on their employment income derived from work performed in China regardless of which entity is paying. Residing in China for one calendar year means that, in a calendar year, temporary absences from China are less than 30 days continuously or 90 days altogether. IIT applicability timelineIndividuals who reside in China for more than one year, but less than five years, are subject to personal income tax on both China-sourced and foreign-sourced income borne by a China-based entity. Foreign individuals who reside in China for more than five years are taxed on their worldwide income. After an individual resides in China for five years, in the sixth year moncler, if the individual resides in China for less than a year, the five year period is reset and the 90 (183) day rule applies again. Senior managementThe 90 (183) day foreign employment exemption rule does not apply if the employee in question holds a senior management position in China. These individuals are liable to individual income tax regardless of the number of days they reside in China during a calendar year. In general, senior management positions include: Director Chief executive officer General manager Vice president Chief representative Individuals that hold positions in specific professional fields, such as chief engineer or chief financial officer Certain individuals who do not hold a title such as manager but carry similar responsibilities or have a great influence on business operations or decisions For people holding senior management positions モンクレール, their directors fee or salaries paid by domestic employers regardless of whether it is China or non-China sourced is subject to IIT in China. Tax ratesIncome from wages and salaries is taxed according to progressive rates, ranging from 3 percent to 45 percent of monthly taxable income. Monthly taxable income is calculated after a standard monthly deduction of RMB3,500 for local employees. For foreign individuals working in China (including residents of Hong Kong, Taiwan and Macau), the standard monthly deduction is RMB4,800. Money paid into Chinese social insurance can also be added to your pretax deduction. Monthly Taxable Income = Monthly Income RMB4 モンクレール,800 Tax Payable = Taxable Income x Applicable Tax Rate Quick Calculation Deduction IIT calculation for monthly salaryWhen calculating their IIT amount, foreign expatriates need to apportion their total taxable income based on the income source and time spent in and outside of China. The specific formulae are listed in the accompanying table. Employment benefitsFor IIT purposes, taxable income refers to wages, salaries, bonuses, year-end bonus, profit shares, allowances or subsidies or other income related to job or employment. Certain employment benefits for foreign individuals could be specifically treated as not being taxable under the IIT law if certain criteria can be met. These include (with supporting invoices where applicable): Employee housing costs Reasonable home leave fares of two trips per year for the employee Reasonable employee relocation and moving costs Reasonable reimbursement of certain meals, laundry, language training costs and childrens education expenses in China Any cash allowance paid to cover expected work-related expenditures (such as an entertaining or travel allowance) will be fully taxable to an employee IIT may be reduced by reimbursing specific work-related expenses incurred by an employee (which may include entertainment, health or social club fees, local travel, newspapers and journals, telephone costs, etc.) instead of paying an allowance. Non-employment incomeNon-employment income is taxed at rates generally ranging from 5 percent to 35 percent, depending on the income source.