Promulgation Authorities： State Administration of Taxation
Release Date： 2020.07.28
Effective Date： 2020.07.01
Doc Number： Announcement [2020] No.13 of the State Taxation Administration
Announcement of the State Taxation Administration on Improving and Adjusting the Methods of Withholding and Prepayment of Individual Income Tax for Certain Taxpayers
Announcement [2020] No.13 of the State Taxation Administration
For the purposes of further supporting stable employment, ensuring employment, and reducing the tax burden on new entrants at the phase of withholding and prepayment of individual income tax, announcement is hereby made on improving upon matters relating to adjustments to the method of withholding and prepayment of individual income tax for persons deriving income from wages and salaries for the first time in a year as follows:
I. For a resident individual who obtains wage and salary income for the first time in a tax year, the withholding agent may, when withholding and prepaying individual income tax, compute the cumulative deduction for expenses based on RMB5,000/month multiplied by the number of months up to the current month for the taxpayer.
II. Where a student who is receiving full-time academic education obtains income from remuneration for personal services for his/her internship, the withholding agent may, at the time of withholding and prepaying individual income tax, compute and withhold tax using the cumulative withholding method stipulated in the Announcement of the State Taxation Administration on Promulgation of the "Administrative Measures for Declaration of Withholding of Individual Income Tax (for Trial Implementation)" (2018 No. 61).
III. Any taxpayer who complies with the provisions of this Announcement and are able to withhold and prepay individual income tax pursuant to the aforesaid provisions shall promptly declare to the withholding agent and provide the relevant proof materials or letter of undertaking truthfully, and shall be responsible for the veracity, accuracy and completeness of the relevant materials and letter of undertaking. Relevant materials or letters of undertaking shall be kept by the taxpayer and withholding agent for future reference.
IV. Resident individuals who derive income from wages and salaries for the first time referred to in this Announcement shall mean resident individuals who do not derive income from wages and salaries or have not withheld or prepaid individual income tax on remuneration for provision of labour services pursuant to the cumulative withholding method during the period from the first month of a tax year to the first month of employment.
This Announcement shall come into force as of July 1, 2020.
State Taxation Administration
July 28, 2020
