On 20 October 2018, the Ministry of Finance and the State of Administration of Taxation (SAT) deliberated on a draft to amend the Implementing Regulations for the Individual Income Tax Law ("Draft Implementing Regulations") and the draft Interim Measures on the Additional Special Deduction Items for the Individual Income Tax ("Draft Special Deduction Measures"). Both drafts will take effect on 1 January 2019 to implement the new Individual Income Tax (IIT) Law.
In this article, we will discuss the key provisions in the two drafts and identify actions that individual taxpayers and their employers should take in anticipation of the new IIT regime.
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