Two Chinese government departments released on August 28, 2023 the Announcement on Continuing the Implementation of Policies Related to the Final Settlement and Payment of Individual Income Tax on Comprehensive Income, clarifying relevant matters.
The Announcement clearly states that for their annual comprehensive incomes obtained from January 1, 2024 to December 31, 2027 that are under 120,000 yuan but are subject to the final settlement and payment and tax supplementation, or have supplementary taxes of less than 400 yuan in the annual final settlement and payment, residents may be exempted from the final settlement and payment of individual income tax, except where their withholding agents have failed to comply with the legal requirement and withhold the prepaid taxes for them when they obtained their comprehensive incomes.
Source: Announcement n.32 of 2023