THE Chinese State Administration of Taxation
has recently issued a Circular on calculation of income tax on
portion of tax borne by employers on behalf of employees on annual lumpsum
bonus.
As
per the latest direction where employers bear a portion of employees'
income tax levied on annual bonus, it shall be added to
the income of employees. For computation of the same, the tax administration
has also prescribed a formula.
The
Circular has come into effect from May 1, 2011.
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