February 14 2023

STA Unveils Arrangements for Consolidated Settlement and Payment of IIT on Comprehensive Income

Source: Announcement of the State Taxation Administration

The State Taxation Administration ("STA") released on February 6, 2023 the Announcement on Matters concerning the Settlement and Payment of Individual Income Tax ("IIT") on Comprehensive Income on a Consolidated Basis in 2022, which generally continues the basic framework and main contents of the previous three announcements while highlighting changes in three aspects.

First, it added the provision that allows additional deduction of expenses for care of children under three years old, deduction of private pensions, and other deductions in the final settlement of IIT for comprehensive income according to the provisions of the State Council No.8 Document and the MOF and the STA No.34 (2022) Announcement. Second, it fine-tuned the appointment-based tax handling system, extending the appointment expiry date to March 20, 2023 while keeping the appointment starting date (February 16, 2023) unchanged. Third, it added the provision that gives priority to taxpayers with heavier burdens in refunds of taxes. The Announcement also opened services such as providing intelligent codes for taxpayers to scan to file returns for pre-tax deduction of private pensions.