From the employee’s perspective, Chinese nationals are generally considered Chinese tax residents for IIT purpose. Chinese residents in general are subject to IIT on their worldwide income.
1. New tax calculation formula and filing forms
Chinese tax residents who have overseas income are required to file ATR form B and several schedules to report global income to China (except several specific scenarios). The tax calculations became more complex.
2. More requirements for foreign tax credit claim
Foreign tax credit is allowed on form B. But more documents (e.g. foreign tax payment certificate) are required to enjoy the tax credit.
3. Short filing and payment period
The filing and payment period for ATR is 1 March to 30 June the following year with NO extension allowed.
4. Counter filing
Form B can be only lodged at the counter of the local tax authority.