Announcement of the State Administration of Taxation on Matters Concerning the Collection and Administration of Individual Income Tax on Cash Awards Received by Scientific and Technological Staff for the Transformation of On-duty Scientific and Technological Achievements (Announcement of the State Administration of Taxation [2018] No.30)

11 June 2018

On 11 June 2018, the State Administration of Taxation released Public Notice [2018] No. 30 ("PN 30"), requiring non-profit research institutes or advanced education institutes ("the institutes") which grant job related cash rewards on transformation of scientific and technological achievements ("the cash rewards") to technological personnel, shall submit record-filing forms to their in-charge tax authorities within 15 days of the following month when the cash rewards are paid. Besides, PN30 further indicates that when filing the withholding IIT return ("the return"), the institutes shall:

  1. Combine the amount of cash rewards with the salaries and wages for the current month as the "Total amount of Income of current month."
  2. Fill in 50% of the cash rewards amount as "Tax-exempt income" with remark indicating "IIT-exempt cash rewards for technological personnel".
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