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歡迎訪軟銀財務(wù)官網(wǎng)
2024-3-15

Why our company must withhold the IIT tax?

My company must deduct the personal individual income tax when makes the payment to an individual for service?

Yes. Although the obligation to pay tax is the individual who receiving the payment, the company paying the payment has an obligation to withhold the tax and pay to tax office.


What if the payment company does not withhold it?

Withholding and settlement individual income tax is the legal obligation of paying companies. If the tax is not withheld, when the person fails to declare the tax on time, the tax office can directly recover the tax from the payment company and impose a fine more than 50% and less than three times of the tax that should be withheld. Additional, there is delay fee with 5/10000 per day which also should be paid by the payment company.


Please note that even the personal income tax is withheld, still remember to obtain the corresponding invoice issued by the individual, so that it can be deducted as the tax deductable expense. ( If the service income amount less than 500 per time, can ignore the fapiao)


Please contact us with any enquiries

wcx@ruanyinchina.com

fmjr.com.cn

+86 021 6049 2821

+86 189 1629 8482


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