Taxpayers who have the demand for processing at the early stage of IIT Reconciliation (from March 1 to March 20) can make an appointment for processing on any of the above time slots through the Individual Tax Reconciliation App after February 21 according to their own situation.

The State Administration of Taxation (SAT) has issued a new announcement on individual tax reconciliation for the year 2023, the main changes are as follows:

First, in the part of Article 6 "Handling Methods", the time for confirmation of the remittance of taxpayers' accounts is further extended. For taxpayers who have the need for escrow, it is no longer required that they must confirm the entrusted relationship with the unit before April 30, so as to leave sufficient time for taxpayers and units to handle the remittance.

Secondly, in the part of Article 8 "Declaration Information and Retention of Information", according to the relevant provisions of the Announcement of the Ministry of Finance and the State Administration of Taxation on the Continuation of Individual Income Tax Policies on Equity Incentives of Listed Companies (No. 25 of 2023), the policy of separate taxation of equity incentives has been extended to the end of 2027. If a taxpayer obtains more than two (including two) equity incentives in a taxable year, the tax shall be calculated on a consolidated basis. In line with the principle of facilitating the operation of taxpayers, the Announcement further clarifies the manner, time and place for consolidated declaration of multiple equity incentives in cases where a taxpayer obtains more than two equity incentives.

Thirdly, in the part of Article 10 "Tax Refund (Due)", for the taxpayers who have not declared the full amount of Due tax, the Notice further specifies the provisions on the delivery of the relevant instruments of remittance, so as to urge the taxpayers who have not declared the Due tax as well as the taxpayers who have not paid the full amount of tax to fulfill their tax obligations in accordance with the law.

Fourthly, in the part of Article 11 "Accounting Service", the tax appointment system has been further improved. Considering that the Spring Festival holiday is late this year, the starting time for making appointments for taxremittance has been adjusted to February 21st.

What are the changes to the annual IIT reconciliation?

On the basis of continuous optimization of tax services, the following new facilitation initiatives have been introduced in this year's remittance:

1. Further expanding the scope of priority tax refund services. For taxpayers with an annual income of less than 60,000 yuan and who have made prepayment of individual income tax, on the basis of the provision of fast processing services for simple declaration on the Individual Income Tax Reconciliation APP and the website of the Natural Person Electronic Taxation Bureau in the previous years, priority tax refund services are further provided to continuously enhance the sense of achievement of taxpayers.

2. Further expanding the pre-filling service for items in the remittance return. Relying on the medical expense data and personal pension data shared by the National Healthcare Protection Bureau and the Ministry of Human Resources and Social Security with the tax authorities, it has provided taxpayers with pre-filling services for information on special additional deduction for medical treatment for major illnesses and information on personal pension, so as to provide taxpayers with a better filing experience.

3. Further optimizing the operating experience of taxpayers' personal tax reconciliation APP. Upgrading the version of Individual Tax Reconciliation APP, reconstructing the channel page, redesigning the functional icons, avoiding the intersection of business functions, integrating the display of matters for handling inquiries, and highlighting the "to-do" prompts, so that the taxpayers' experience will be more friendly.

At PHC Advisory, we can offer you full support on matters regarding doing business in Italy and Asia, or any other issues your business may face. If you would like to know more about policies relevant to your business in Italy or Asia, please contact us at info@phcadvisory.com. 

PHC Advisory is a company of DP Group: an international professional services conglomerate of companies with approximately 100 experienced professionals worldwide. We offer comprehensive services in tax, accounting, and financial consulting, including financial supervision, financial audit, internal audit, internal control over financial reporting, and support for audited financial statements and annual audits, ensuring clients' financial transparency and compliance.

The content of this article is provided for informational purposes only, financial advice must be tailored to the specific circumstances on a case-by-case basis, and the contents of this article do not legally bind PHC Advisory with the reader in any way.

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