State Taxation Administration Order No. 57

Updated: 2025-02-26

(Promulgated by Order No. 57 of the State Taxation Administration on February 26, 2025; Effective from February 26, 2025)

Administrative Measures for Individual Income Tax Annual Reconciliation for Comprehensive Income has been reviewed and adopted at the first bureau meeting of the State Taxation Administration on February 21, 2025. It is hereby promulgated and shall enter into force from the date of promulgation.

Commissioner of the State Taxation Administration: Hu Jinglin

February 26, 2025

Administrative Measures for Individual Income Tax Annual Reconciliation for Comprehensive Income

Chapter I  General Provisions

Article 1  For the purposes of protecting the legitimate rights and interests of taxpayers and regulating the individual income tax annual reconciliation for comprehensive income, the Measures are formulated in accordance with the relevant provisions of Individual Income Tax Law of the People’s Republic of China (hereinafter referred to as Individual Income Tax Law) and its Implementation Regulations, and Tax Collection and Administration Law of the People’s Republic of China (hereinafter referred to as Tax Collection and Administration Law) and its Implementation Rules.

Article 2  Where a taxpayer obtains comprehensive income, the individual income tax payable shall be calculated on an aggregated basis for a tax year, and the taxpayer shall complete the annual tax reconciliation in accordance with the law.

Article 3  For the purposes of the Measures, “comprehensive income” refers to a taxpayer’s income from salary and wages, remuneration for personal services, author’s remuneration, and royalties.

For the purposes of the Measures, “annual tax reconciliation” refers to the process where a taxpayer aggregates the total amount of comprehensive income obtained within a tax year, deducts the expenses of 60,000 yuan, special deductions, itemized deductions for specific expenditures, other deductible items determined in accordance with the law, and eligible donations made to public welfare and charitable causes, applies the individual income tax rate for comprehensive income, and subtracts the quick calculation deduction and the amount of tax reductions and exemptions to calculate the tax payable for the year; determines the amount of tax to be refunded or the supplementary tax payable for the tax year after further deducting the tax that has been prepaid; files tax with the tax authority within the statutory time limit and settles the tax payment. The specific calculation formula is as follows:

The amount of tax to be refunded or the supplementary tax payable = [(amount of comprehensive income – 60,000 yuan – special deductions such as “three social insurances and housing provident fund” – itemized deductions for specific expenditures such as children’s education – other deductible items determined by law – qualified donations made to public welfare and charitable causes) × applicable tax rate – quick calculation deduction] – amount of tax reductions and exemptions – amount of tax prepaid

Where a taxpayer obtains income from outside China, he/she shall file a tax return based on the actual circumstances in accordance with relevant regulations.

Article 4  Taxpayers shall determine the tax year to which their comprehensive income belongs based on the date of receipt.

Where a foreign tax year for income from outside China is not consistent with the calendar year, the Chinese tax year corresponding to such income from outside China shall be the calendar year in which the last day of the foreign tax year falls.

Article 5  Taxpayers shall complete the annual tax reconciliation within the period from March 1 to June 30 of the year following the tax year in which comprehensive income is obtained. A taxpayer without a domicile in China who leaves China before the commencement of the reconciliation period may complete it before departure.

Article 6  Taxpayers who have prepaid individual income tax in accordance with the law upon obtaining comprehensive income and meet any of the following conditions are not required to file an annual tax reconciliation return:

(1) Where a supplementary tax payment is required upon the reconciliation but the annual comprehensive income does not exceed the prescribed amount;

(2) Where a supplementary tax payment is required upon the reconciliation but the amount of supplementary tax payable does not exceed the prescribed amount;

(3) Where the amount of tax prepaid is equal to the actual tax payable upon the reconciliation;

(4) Where the taxpayer is eligible for a tax refund upon the reconciliation but does not apply for the refund.

Article 7  Taxpayers who obtain comprehensive income and meet any of the following conditions shall file an annual tax reconciliation return in accordance with the law:

(1) Where the amount of tax prepaid is greater than the actual tax payable upon the reconciliation and a refund is applied for;

(2) Where the amount of tax prepaid is less than the actual tax payable upon the reconciliation and the taxpayer does not meet the conditions specified in Article 6 of the Measures;

(3) Where underreporting of comprehensive income or failure to file comprehensive income during the tax year is caused by incorrect application of income items, the withholding agent’s failure to perform the withholding obligation in accordance with the law, or the absence of a withholding agent for the comprehensive income obtained.

Chapter II  Preparation for the Annual Tax Reconciliation and Relevant Information Submission

Article 8  Before filing the annual tax reconciliation return, taxpayers shall confirm the validity of the basic information to be reported, such as contact phone numbers and bank accounts. They shall also review and confirm information regarding their comprehensive income, relevant deductions, and taxes paid through the Individual Income Tax mobile APP (hereinafter referred to as the “Individual Income Tax APP”), the website of electronic tax bureau for natural persons (hereinafter referred to as the “website”), or the withholding agent.

Article 9  Taxpayers may apply for deduction or supplementary deduction of the following items during the annual tax reconciliation:

(1) The subtracted expenses of 60,000 yuan;

(2) Qualified special deductions such as basic pension insurance, basic medical insurance, unemployment insurance, and other social insurance premiums and housing provident funds;

(3) Qualified itemized deductions for specific expenditures on care of children under the age of three, children’s education, continuing education, medical treatment for serious illness, housing loan interest or housing rent, and supporting the elderly;

(4) Qualified enterprise annuities and occupational annuities, commercial health insurance, private pensions, and other deductions;

(5) Qualified donations made to public welfare and charitable causes.

Where taxpayers claim deductions under items (2) through (5) of this Article, they shall retain or provide relevant supporting evidence as required.

Article 10  A taxpayer who obtains both comprehensive income and business income may apply for the subtraction of the expenses of 60,000 yuan, special deductions, itemized deductions for specific expenditures, and other deductible items determined by law from comprehensive income or business income, but may not apply for the subtraction repeatedly.

Article 11  The itemized deductions for specific expenditures claimed by taxpayers shall comply with Individual Income Tax Law and relevant national regulations.

Where a taxpayer jointly claims itemized deductions for specific expenditures on care of children under the age of three, children’s education, medical treatment for serious illness, housing loan interest or housing rent, or supporting the elderly with other people submitting such information, the deduction amounts shall be confirmed with such people within the permitted deduction standards.

Article 12  Taxpayers enjoying relevant tax reductions or tax exemptions or other tax preferences shall thoroughly understand the policy provisions before filing and confirm their eligibility.

Article 13  Where taxpayers have objections to the comprehensive income information reported by the withholding agent, they shall first verify and confirm the information with the withholding agent. Where errors are confirmed and the withholding agent refuses to make corrections, or where getting in contact with the withholding agent is impossible due to identity theft or similar circumstances, taxpayers may file an appeal with the tax authority through the Individual Income Tax APP, the website, or other designated channels.

Chapter III  Procedures and Services for the Annual Tax Reconciliation

Article 14  Taxpayers may choose from the following methods to complete the annual tax reconciliation:

(1) Filing by themselves;

(2) Filing by their employer (including institutions withholding and prepaying individual income tax on their income from remuneration for personal services using the cumulative withholding method, hereinafter collectively referred to as the “employer”) on their behalf. Where a taxpayer requests their employer to handle the filing, the employer shall handle it on his/her behalf or provide training and guidance to assist the taxpayer in completing the reconciliation and applying for a tax refund or making a supplementary payment of tax. Where the employer handles the filing on behalf of the taxpayer, the taxpayer shall confirm the matter to the employer in writing or by electronic means. Where the taxpayer fails to confirm to the employer, the employer shall not handle the filing on behalf of the taxpayer;

(3) By entrusting a tax-related professional service institution or other institution/individual to handle the filing. Where filing is entrusted to another agent, the taxpayer shall sign a power of attorney with the entrusted agent.

Article 15  Taxpayers shall prioritize filing the annual tax reconciliation return through the Individual Income Tax APP or the website. They may also file by mail or in person at taxpayer service halls. Where filing by mail, taxpayers shall send the tax return to the address announced by the tax service of the province, autonomous region, municipality directly under the Central Government, or city specifically designated in the state plan where the tax authority in charge is located.

Article 16  When filing the annual tax reconciliation return, taxpayers shall ensure the information reported is true, accurate, and complete.

Where filing is handled by an employer or entrusted to an agent, taxpayers shall truthfully provide the employer or agent with all information and materials concerning their comprehensive income, relevant deductions, and tax preferences enjoyed during the tax year.

Taxpayers and employers handling the annual tax reconciliation on their behalf are required to retain all information and materials concerning comprehensive income, relevant deductions, and tax preferences enjoyed for five years from the expiry date of the annual tax reconciliation period.

Article 17  After completing the annual tax reconciliation on behalf of the taxpayer, the employer or entrusted agent shall promptly notify the taxpayer of the reconciliation status. Where the taxpayer discovers errors in the reconciliation, they may request the employer or entrusted agent to amend the filing or make amended filings by themselves.

Article 18  During the annual tax reconciliation period, taxpayers who file by themselves or through an agent shall file their tax returns with the tax authority in charge at the place where their employer is located. Taxpayers with two or more employers may choose to file with the tax authority in charge at the place where one of their employers is located. Where the annual tax reconciliation is handled by the taxpayer’s employer, it shall be filed with the tax authority in charge at the place where that employer is located.

Taxpayers without an employer shall file with the tax authority in charge at the place of their main income source, place of household registration, or habitual residence. The place of main income source refers to the location of the withholding agent that pays the taxpayer the largest cumulative amount of remuneration for personal services, author’s remuneration, and royalties during the tax year.

After the annual tax reconciliation period, the tax authority shall designate the tax authority in charge for a taxpayer who has not yet completed his/her annual tax reconciliation.

Unless otherwise specified, the tax authority in charge of a taxpayer’s annual tax reconciliation for a given tax year shall not be changed once determined.

Article 19  Tax authorities shall provide pre-filling services for tax return items via the Individual Income Tax APP and the website to facilitate taxpayers’ annual tax reconciliation.

Tax authorities conduct policy interpretations and operational guidance for the annual tax reconciliation, and provide tax-related consultations through channels such as the Individual Income Tax APP, the website, and the 12366 hotline.

Special groups facing difficulties in completing the annual tax reconciliation by themselves may submit an application, and tax authorities shall provide them with personalized convenience services.

Article 20  During the initial phase of the annual tax reconciliation, tax authorities shall provide appointment-based services. Taxpayers requiring such services may make an appointment via the Individual Income Tax APP.

Tax authorities and employers shall remind taxpayers in batches and stages to complete their annual tax reconciliation within the designated time periods.

Article 21  Taxpayers who cannot complete the annual tax reconciliation by the deadline may apply for an extension before the reconciliation period ends. Where an application is approved by the tax authority, the deadline may be extended; however, taxpayers shall prepay taxes based on the amount paid in the previous annual tax reconciliation period or the amount assessed by the tax authority within the original reconciliation period, and complete the reconciliation within the approved extension period.

Chapter IV  Tax Refund and Supplementary Payment

Article 22  Where a taxpayer’s tax payable upon completing the annual tax reconciliation in accordance with the law is less than the amount of tax prepaid, the taxpayer may apply for a tax refund.

Taxpayers who owe a supplementary tax payable upon the annual tax reconciliation shall pay the tax before the end of the reconciliation period.

Article 23  Taxpayers whose comprehensive income does not exceed 60,000 yuan and who have prepaid individual income tax may apply for a tax refund via the simplified filing method through the Individual Income Tax APP or the website during the annual tax reconciliation period.

Tax authorities shall provide tax refund priority services to taxpayers who meet the conditions for a tax refund upon the annual tax reconciliation and bear heavy living burdens.

Article 24  After taxpayers submit their annual tax reconciliation refund applications, tax authorities shall conduct refund reviews in accordance with the law.

Where the tax authority finds that the refund application does not comply with regulations, it shall notify the taxpayer that he/she shall supplement materials or amend the annual tax reconciliation filing. Where the taxpayer refuses to provide materials or amend the filing, the tax authority shall not grant the refund.

Article 25  Taxpayers applying for tax refunds upon the annual tax reconciliation or other tax refunds shall apply for the refund only after completing the following procedures for prior years:

(1) Having failed to pay supplementary taxes from previous years’ annual tax reconciliations in accordance with the law;

(2) Where the tax authority has notified the taxpayer of discrepancies in the previous years’ annual tax reconciliations and the taxpayer has failed to amend the return or provide the required information.

Article 26  When applying for a tax refund upon the annual tax reconciliation, taxpayers shall provide a qualified bank account opened within China. The tax authority shall process the tax refund after review in accordance with regulations.

Where a taxpayer fails to provide a valid personal bank account or provides incorrect account information, the refund application shall be submitted after rectifying the information as required.

Article 27  Taxpayers settling supplementary tax payments through the annual tax reconciliation may pay taxes via channels such as online banking, taxpayer service halls, bank counters, or non-bank payment institutions.

Taxpayers choosing to make their supplementary tax payments by mail shall confirm the reconciliation progress via the Individual Income Tax APP, the website, or the tax authority in charge and remit the tax in a timely manner.

Chapter V  Administrative Measures and Legal Responsibilities

Article 28  After the annual tax reconciliation period, tax authorities shall recover unpaid or underpaid taxes from taxpayers who fail to make a supplementary tax filing and payment or underpay supplementary taxes, impose overdue payment surcharges, and record the matter in their individual income tax payment records in accordance with the law. Tax authorities shall promptly remove such records once taxpayers correct their failure to file or pay supplementary taxes.

Article 29  Where taxpayers cause over-refunding or underpayment of taxes in the annual tax reconciliation due to errors in filing information, and voluntarily correct such errors or promptly correct them upon reminders by tax authorities, tax authorities may exempt them from punishment under the principle of “no punishment for first time violation”.

Article 30  Taxpayers who fail to file tax returns as required, fail to pay or underpay taxes, submit false tax returns, refuse to cooperate with tax examinations, or make false commitments shall be incorporated into the credit information system. Where such acts constitute serious dishonesty, credit constraints shall be imposed in accordance with relevant regulations.

Article 31  Where an employer fails to handle the annual tax reconciliation on behalf of a taxpayer as required, or fraudulently uses a taxpayer’s identity to file the withholding return or the annual tax reconciliation return, it shall be handled in accordance with relevant regulations and incorporated into the enterprise tax-paying credit evaluation.

Where a corporate legal representative, natural person partner of a partnership enterprise, or investor of a sole proprietorship fails to complete the annual tax reconciliation in accordance with the law, it shall be associated with and incorporated into the enterprise’s tax-paying credit evaluation.

Article 32  Where an entrusted agent assists a taxpayer in making false filings, fraudulently obtaining tax refunds, or committing other tax violations related to the annual tax reconciliation, such acts shall be handled in accordance with Tax Collection and Administration Law and regulations on tax-related professional service management, and shall be incorporated into the credit evaluation management of tax-related professional services.

Article 33  After the annual tax reconciliation period, taxpayers who fail to make a supplementary tax filing and payment or underpay supplementary taxes shall be ordered by the tax authority to make rectifications within a specified time limit and served with relevant documents. Where they fail to make rectifications by the deadline, the tax authority may impose penalties in accordance with Tax Collection and Administration Law. In serious cases, such violations shall be publicly exposed.

Article 34  Tax authorities, institutions handling matters on behalf of taxpayers, and entrusted agents shall keep taxpayers’ tax-related information confidential in accordance with the law.

Article 35  Where tax authorities or their staff violate laws and regulations and infringe upon the legitimate rights and interests of taxpayers, taxpayers may file complaints or reports, apply for administrative reconsideration, or initiate administrative litigation in accordance with the law.

Chapter VI  Supplementary Provisions

Article 36  The Measures shall not apply to income obtained by taxpayers from leasing of assets and other categorized income, nor to income that is not included in comprehensive income for tax calculation purposes as prescribed.

The Measures shall not apply to non-resident individuals who obtain income from salary and wages, remuneration for personal services, author’s remuneration, or royalties.

Article 37  The Measures shall enter into force from the date of promulgation.

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.