Mar. 2026 - Reminder - 2025 Individual Income Tax ("IIT") annual filing has started

Who should file the annual return?

Tax residents* who derive consolidated income shall calculate and settle IIT on a consolidated annual basis in accordance with the law.
A taxpayer who derives consolidated income and meets any of the following conditions shall file the annual IIT return:

• Taxpayers applying for a tax refund
• Taxpayers whose comprehensive income exceeds CN¥120,000 and who have an overdue tax amount due more than CN¥400. This includes the following:
   

1. Individuals who joined their company after January 2025
2. Individuals receiving salary from two or more sources
3. Individuals receiving remuneration for independent personal services, author's remuneration, or royalties
4. Individuals who failed to submit their special additional deduction(s)
5. Other cases where IIT needs to be regularised, including equity incentives and other overseas-sourced income

* Tax residents refer to individuals who are domiciled in China**, or who are not domiciled in China but have stayed in China for 183 days or more in aggregate within a tax year.

** For the purposes of the Individual Income Tax Law, an individual who has a domicile in China refers to an individual who habitually resides in China by reason of household registration, family ties, or economic interests.

How to declare the annual return?

• Online (individual), either through the IIT APP or the tax website
• Online (company), through the tax platform, upon authorisation from the employee
• Entrust a professional agent

Please note that:

• Foreign nationals (tax residents) can also log in to the IIT APP using their tax identification number. First-time users may need to go to the tax office with their passport to obtain their tax identification number.
• For method 1, you could find the detailed instructions in Chinese on how to file the annual return using the IIT APP via the website of State Taxation Administration.
• For methods 2 and 3, the legal representative and finance manager of the company need to formally authorise the trustee to perform the declaration. An agency agreement will also need to be signed by the individual.
   

What is the deadline to file the annual return?

The declaration period is from 1 March to 30 June. Declarations must be filed by 30 June 2026.

Points of attention

• A non-domiciled individual who stays in China for 183 days or more in each tax year for six consecutive years will become subject to IIT on worldwide income starting from the seventh year, unless the “six-year rule reset” condition is met.
• Failure to complete the annual reconciliation within the statutory deadline may result in late payment surcharges, tax administrative penalties, or inclusion in the tax credit record system.

We are happy to assist with the filing of the annual IIT return. Should you require our assistance, please contact us by 15 April.

References:

• State Administration of Taxation Announcement [2026] No.1: Announcement on the Appointment Time for Handling the Final Settlement and Payment of Individual Income Tax on Comprehensive Income for the Year 2025 (link here in Chinese);
• State Administration of Taxation Decree No.57: Administrative Measures for Final Settlement of Individual Income Tax on Consolidated Income (link here in Chinese).