In recent years, China has urged many outstanding tax abatement reforms since 2017. What's more, a remarkable individual income tax reduction policy issued in Oct 2018, facing the challenge of designing and carrying out new reforms of its taxation system.
The aim of the new law is to ease the tax burden for low to mid-income earners while taking a tougher stance on both foreign workers and high-income earners.
The tax record becomes increasingly important and will soon be connected to the paperwork that requires for almost any formal procedure, for example, your work permit renewal.
You'd better provide your relevant tax report before getting approved to continue with any kind of legal procedure in most major Chinese cities (like Beijing Shanghai and Shenzhen only part of applications).
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