People’s Republic of China - Implications of Golden Tax System III on individual income tax reporting and administration
Global Newsflash:30 August 2016/China
A major tax administration project, which should be implemented nationwide by the end of 2016, will have a significant impact on filing and reporting obligations relating to individual income tax (IIT) in China. (Global Newsflash:30 August 2016/China)
The "Golden Tax System" (“GTS”) is an electronic tax administration system developed by the Chinese government in the 1990s as one of 12 government information management systems. The first two iterations of the system, GTS I and II, used information technology mainly to improve compliance with China’s value-add tax regulations, notably the use and authentication of invoices (fapiaos), etc. The third version of GTS (“GTS III”) contains more sophisticated functionality that ultimately will be integrated with all industries, tax categories and tax administration areas, especially for People’s Republic of China IIT purposes.
This newsletter explains key implications of GTS III.
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