Businesses required to withhold IIT on certain gifts made to individual customers / targets

Businesses required to withhold IIT on certain gi...

China alert - Issue 19, June 2011   The Ministry of Finance (MoF) and the State Administration of Taxation (SAT) jointly issued Circular 50 on 9 June 2011 to deal with the obligation of businesses to withhold Individual Income Tax (IIT) on gifts made to individual customers or targets for sales promotion and business development purposes. Circular 50 shall take effect from the date of release.