China Statutory Updates 2024

Here are the China statutory updates for 2024.

Effective March 2024

Start of Annual IIT Filing

Chinese tax residents, referring to residents of China or individuals who have stayed in China for over 183 aggregate days in a tax year, must file their annual Individual Income Tax (IIT) for 2023 starting March 1, 2024 to June 30, 2024. Taxpayers may handle the filing themselves, or entrust the filing to their employers or to a trustee like a professional service agency. 

Individuals who have made advance payments on their 2023 IIT, as per legal requirements, may be exempt from submitting an annual tax return if they fall into any of the following scenarios:

• they are due for a tax refund based on their annual calculations, yet their total comprehensive income for the year does not surpass CNY 120,000; 
• the calculated tax owed annually is no more than CNY 400; 
• their prepaid tax amount matches exactly with the year-end tax liability; 
• or they qualify for a tax rebate but choose not to apply for it.

During the annual tax declaration period, taxpayers have the opportunity to claim or add various deductions. These include a fixed deduction of CNY 60,000 alongside specific deductions for personal payments towards approved social securities and housing funds. 

Additionally, itemised deductions can be made for expenses related to care for children under 3, educational costs for children, adult education, medical expenses for critical illnesses, interest on housing loans or rent, and care for senior family members. 

Taxpayers may also subtract contributions to eligible company pensions, professional annuities, private health insurance, personal retirement funds, and contributions to authorised charitable organisations.

Source: Lexology

Visa-free Policy Expanded for Six Countries on Trial Basis

From March 14, 2024 to November 30, 2024, foreign nationals from Austria, Belgium, Hungary, Ireland, Luxembourg, and Switzerland are now allowed to travel visa-free to China for no more than 15 days. These stays are intended for tourism, family visit, business, or transit purposes.

Source: Chinese Visa Application Service Center

Effective January 2024

New Minimum Wage for Zhengzhou and Luoyang, Henan Province

RMB2,100 per month

Increase in Minimum Disability Allowances, Living Care Allowances and Death Grants in Anhui and Fujian province

1. Anhui

Anhui Province has updated work-related injury insurance to improve benefits for those affected. Entities must implement and report these changes by January 31, 2024.

The adjustments apply to current recipients of disability allowances and death grants as of December 31, 2022. The changes are:

Disability Allowances Increase

• Grades 1 to 6 get monthly increases ranging from RMB136 to RMB70.

For those receiving disability allowances below certain amounts, benefits will be adjusted accordingly.

Death Grant Increase

• Spouses get RMB68 more monthly.

• Other relatives receive an extra RMB58 per person monthly.

• Elderly widows or orphans get RMB30 more per person monthly.

Those with family allowance below RMB1,433 will see an initial increase of RMB20, capped at RMB1,433 after adjustments.

2. Fujian

Fujian Province updated work-related injury insurance and benefits. They increased three key benefits for injured employees. These benefits are disability, death grants, and living care allowances. The changes apply to employees on these benefits before December 31, 2022. They are not for those now on retired allowances. The adjustments are:

Disability Allowances Increase

• Grades 1 to 4 see increases, ranging from RMB168 to RMB179 per month.

• For those not meeting the new minimum of RMB3,159 monthly, the higher standard applies.

For grades 5 and 6, the adjustment follows the “Regulations on Work Injury Insurance.” Employers should use the new standards for all grades. The funds come from the same source.

Living Care Allowances

• People unable to care for themselves should receive at least RMB3,795 per month.

• Those with limited care abilities should get at least RMB3,036 per month.

• Partially dependent individuals should receive at least RMB2,277 per month.

Death Grant

• The grant increases by RMB59 per person per month.

• Elderly widows or orphans receive an extra RMB50 per person.

Increase in the Maximum Contribution Base of the Housing Provident Fund in Shiyan, Hubei province

RMB22,183

Ethnic Minorities’ Public Holidays in Urumqi and Yinchuan

Employees are entitled to overtime payments

Urumqi

The specific arrangements for festivals and seasons scheduled in 2024 are as follows:

Yinchuan

The specific arrangements for festivals and holidays in 2024 are as follows:

Featured photo by Road Trip with Raj on Unsplash