Personal Financial Management FAQ's

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Regarding the tax liability of directors and senior management personnel of enterprise within China exist in the jurisdiction of China another testimony. Which determination is meant? And which competence the tax authorities will have, if they don't pay tax on this income?

For individuals who assume posts as directors or senior level managerial personnel of the enterprise within China, the director fees or wages and salaries gained by them, which are paid by the enterprise within China, shall individual Income tax from the day they assume the post as director or senior level managerial personnel of the enterprise within China, until the day when they terminate the posts mentioned above.

Whether or not they perform their duties outside China, they shall perform the tax paying obligations on wages and salaries gained by them, which are paid by the enterprise outside China.

If they fail to do this the tax authorities will reserve the right to check and ratify their income referring to similar entities and positions in local area.