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China's new Individual Income Tax Law ('IIT Law') took effect on January 1, 2019. The new IIT Law brings significant changes to China's individual income tax regime, of which the implementation is becoming clearer after several clarification are given by tax authorities.
The changes are significant for foreign workers in China. In this respect it is also important to understand when seconded foreign employees (sent to China by their HQ) are actually becoming subject to China's new IIT law.
What are the implications of dispatching foreign employees to China? Can they establish a permanent establishment of the HQ?
