Individual Income Tax Policy Implementations - 国家税务总局关于明确个人所得税若干政策执行问题的通知
Released on August 17, 2009, and effective as of the same date
The State Administration of Taxation (SAT) on August 17, 2009, released a circular clarifying some tax collection issues for individual income tax (“IIT”), including the IIT on director’s fees shall be levied in different ways if the individual taxpayer is only a director or a supervisor, not an employee of the company, the director’s fees shall be regarded as the service revenue; or if the individual taxpayer is not only a director or a supervisor but also an employee of the company in which he/she works, the director’s fees combined with his/her salary shall be regarded as the salary of the individual taxpayer.