China legal update: Legal News: It Is Time to Handle Annual Final Tax Settlement on Comprehensive Individual Income for 2019

China legal update: Legal News: It Is Time to Handle Annual Final Tax Settlement on Comprehensive Individual Income for 2019

Legal News

Legal News: It Is Time to Handle Annual Final Tax Settlement on Comprehensive Individual Income for 2019

On March 20, 2020, Shanghai government rolled out a series of subsidy policies to certain enterprises to relieve the difficulty of operation and promote the production of enterprise.9 We hereby provide you the most updated information on local policies that have been released in Shanghai.

In March, 2020, the State Taxation Administration (“STA”) released the Guidelines for Annual Final Tax Settlement of Comprehensive Individual Income of Year 2019 (“Guidelines”).1 The Guidelines require certain taxpayers2to submit the 2019 annual final settlement. In the scenario where the prepaid tax amount exceeds the annual tax payable amount, taxpayers may apply for refund on retrospective tax payment.

Beijing government has started to implement the tax settlement by launching the individual income tax App. Further, the declaration may be conducted through various channels, such as offline method or on-site declaration. The timeframe for the final settlement will continue until June 30, 2020.

Should you would like to know more details about the Guidelines or the implementation of your city, please feel free to contact us

asiallians@asiallians.com.

NCP Outbreak: Special Epidemic Preventive Measures on Overseas Travelers

For continually curbing the risk of imported infection of Novel Coronavirus Pneumonia (“NCP”). On April 7, 2020, the Civil Aviation Administration of China and the General Administration of Customs of China jointly issued the policy,3requiring Chinese citizens entering from 26 countries4 to fill in the health information on the international version of the health code on Wechat from April 8. Failure to fill in or misrepresentation of information will result in entry obstruction.

The policy divides into two parts:

NCP Outbreak: All Beijing hotels demand nucleic acid testing certificate for all travelers

On March 20, 2020, Shanghai government rolled out a series of subsidy policies to certain enterprises to relieve the difficulty of operation and promote the production of enterprise.9 We hereby provide you the most updated information on local policies that have been released in Shanghai.

Wuhan restarted at midnight of April 8, 2020 after being in lockdown for 76 days. Since restart of Wuhan, which is the hardest-hit city, all cities in China have resumed daily operations. To ensure the prevention and control of the epidemic, China’s key provinces and cities continue to issue new policies to keep a high level of alert.

On April 10, 2020, Beijing Government issued a new policy5 and according to which, all people arriving in Beijing who want to live in a hotel shall present a nucleic acid test certificate and green health code as of April 12, 2020. The test shall be taken within 7 days of arrival with negative result. For the nationwide health code, it shall be without any abnormality. In addition, arrivals shall report a contact person in Beijing. At the same time, the travelers must cooperate with the hotel to check the body temperature twice a day.

It is reported that Beijing has released names of first batch of 46 institutions which can provide the test service, and individuals can make reservations online for a test.

With the development of the epidemic, rules might be changed from time to time and we will keep an eye on this regulation.

NCP Outbreak: How much are the quarantine expenses to be borne by oversea travelers?

On April 15, 2020, Ministry of Foreign Affairs, National Health Commission, National Healthcare Security Administration, and Ministry of Finance have issued a formal notification6 requiring confirmed or suspected overseas travelers to pay their own medical bills if they are not covered by either PRC medical insurance or other commercial insurance. In addition, the expenses incurred by the centralized quarantine for overseas travelers also need to be paid at their own expenses.

According to the information we collected from experienced persons, the estimated quarantine expenses per day at the concentrated hotel are as follows:

The quarantine expenses differ from one hotel to another. Some hotels include expenses for accommodation and meals, while others only disclose the expenses of accommodation. It is suggested to consult the specific hotel for the detailed expenses.

Please bear in mind that NCP-related polices are evolving constantly. As always, Asiallians remains at your services and our teams are currently mobilized in all our offices in China, but also in Hong Kong, Taipei.

 

1. See: http://www.chinatax.gov.cn/chinatax//n810341/n810755
/c5147686/5147686/files/ba9ed83762784ae5b05430d6297f798a.pdf

2. Under the Guidelines, the following people are required to handle the annual final tax settlement: 1) the taxpayer’s 2019 prepaid tax amount exceeds the annual tax payable amount and he/she applies for tax refund; and 2) the taxpayer’s consolidated income in 2019 exceeds RMB 120,000 (US$16,915) and the tax amount to be paid retrospectively exceeds RMB 400 (US$56.4).

3. http://www.caac.gov.cn/XXGK/XXGK/TZTG
/202004/t20200407_201929.html

4. The 26 countries are Italy, the United States, Spain, Germany, Iran, France, South Korea, Switzerland, the United Kingdom, the Netherlands, Austria, Belgium, Norway, Sweden, Portugal, Australia, Brazil, Turkey, Malaysia, Denmark, Canada, Israel, the Czech republic, Ireland, the Philippines and Thailand.

5. See: http://www.beijing.gov.cn/fuwu/bmfw/wsfw/ggts/t1625253.htm

6. See: https://baijiahao.baidu.com/s?id=1664031231
563284104&wfr=spider&for=pc

 


Feel free to contact asiallians@asiallians.com for more information.