Foreigners working in China with an annual income of at least 120,000 yuan (US$15,000) will have to file tax returns according to new rules applying to high-income earners.

High-income Chinese nationals and expatriates working in the country will need to report their income directly to the tax authorities from next year, according to new rules published by the State Administration of Taxation (SAT) on Wednesday.
 
It is the first time the SAT requires individuals to file tax returns, but their taxes will continue to be paid by employers on their behalf.

Whether their employers have filed their incomes or not, they should file individually again within three months after a fiscal year, according to the new rules.

Those who have more than one source of income and those who have made money from overseas will also have to report their income.

Those who fail to file tax returns will face a fine of up to 10,000 yuan. The file will require personal information such as residence and profession, annual income and tax-free stipends. Foreigners will also be required to provide details including their nationality and date of arrival in China.

According to Chinese tax laws, foreigners, excluding diplomats, are also taxpayers in China if their income exceeds the minimum taxable level. <2001>(SD News)

Editor: Yan