Employer’s Obligations in Employees’ Special Additional Deductions for Individual Income Tax
Under the PRC Individual Income Tax Law, the employer is the withholding agent for individual income tax for the remuneration of the employees which have been paid by the employer. According to the PRC Individual Income Tax Law which was amended and became effective on 1 January 2019, some livelihood expenditure of the employees on education, medical treatment, housing or support for elders can be deducted from the income of the employees for individual income tax. As the withholding agent, the employer is required by the law to take the responsibilities in the deduction.
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