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the State Administration of Taxation
Circular of the State Administration of
Taxation on Intensifying the Administration of Archival Materials
concerning the Individual Income Tax on ForeignersGuo Shui Han
[2006] No. 58
The local taxation bureaus of all provinces, autonomous regions,
municipalities directly under the Central Government,
and cities as specifically designated in the state plan
With a view to intensifying and regulating the collection and
administration of individual income tax on foreigners
(including people from Hong Kong, Macao and Taiwan as well as overseas
Chinese, hereinafter the same), you are hereby
notified of the relevant requirements for the administration of archival
materials concerning the individual income tax on
foreigners as follows:
I. Establishing an Account for Foreigners by
Enterprise as the Basic Unit
With regard to those enterprises that employ foreigners within
jurisdiction, the tax authority at the grass-root level
shall establish an administration account for foreigners by enterprise
regardless of how many foreign employees there are
or whether or not relevant foreigners take their jobs for a long term or
only temporarily. An administration account for
foreigners shall include such information of the relevant foreigners as
name (Chinese and foreign language),
nationality, post and tenure.
II. Adopting the Administration Method of
“One Archive for One Person” on the Basis of the Administration Account
The tax authority at the grass-root level shall, on the basis of the
administration account for foreigners by enterprise,
adopt the administration method of “one tax return archive for one
person”. An individual account shall include such
information as: name (in Chinese and foreign language), gender, birth
place (in Chinese and English), birth date,
overseas domicile (in Chinese and English), name of the entity that has
dispatches him, tenure of office in China or period
of labor service, post, period of residence, time of entry into or exit
out of China, resident address in China, phone
number, postal code, amount of income, payment place, withholding agent,
amount of tax declared, amount of tax
payable, amount of tax paid and time of turning over the tax into the
state treasury.
III. Dynamic Administration
Dynamic administration shall be applied to the administration
accounts for foreigners by enterprise as well as to the
individual archives of foreigners, which shall be updated according to
the increase or decrease of the number of
foreigners, change of posts, period of residence, time of entry into or
exit out of China and change of incomes so as to
carry into effect the scientific and fine administration over the
individual income tax on foreigners.
IV. Examination of the Established Accounts
All regions shall, according to the requirements of the State
Administration of Taxation, improve by themselves the relevant mechanism
and intensify the administration of archival
materials by the end of June, 2006. Any region that fails to meet the
requirement of the State Administration of Taxation
of “establishing accounts by enterprise and establishing archives by
individual ” shall establish relevant rules and
system as required as soon as possible so as to realize the objective of
“administration by means of accounts and one
archive for one person”. All regions shall summarize their improvement
on the administration of archival materials
concerning the individual income tax on foreigners, which shall be
reported to the State Administration of Taxation
(Department of International Taxation) by July 31, 2006.
The State Administration of Taxation shall examine and summarize the
administration of archival materials concerning
the individual income tax on foreigners from July to December of 2006.
The examination result will be circulated.
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