The settlement says I owe ¥380 — can I just skip filing? Is that tax evasion?
Yes, you can skip it — and no, it's not tax evasion. If your additional tax is ¥380, you fall under the official filing exemption: anyone whose settlement balance due is ¥400 or less doesn't have to file at all. This is a written policy, not a loophole, and using it is fully compliant.
The exemption rule: it's OR, not AND
Under the joint MOF/STA announcement (effective through December 31, 2027), you are exempt from filing the annual settlement if either of these is true:
| Condition | Your case |
|---|---|
| Your annual comprehensive income is ¥120,000 or less and you owe additional tax | Exempt — no filing, no payment needed |
| OR your additional tax is ¥400 or less | Exempt — no filing, no payment needed |
Note the OR: ¥380 of tax due exempts you regardless of your income level. (Many summaries phrase this as "income under ¥120k and tax under ¥400" — that's wrong. Meeting either condition alone is enough.)
Two more groups also don't need to file: people whose prepaid tax exactly equals what they owe, and people who qualify for a refund but choose not to claim it.
Where the line actually is
Skipping the filing when you're exempt: legal, no consequences. The tax bureau's own guidance says if you meet the exemption, you neither file nor pay.
Skipping when you're not exempt — that's where it turns serious:
- Late surcharge: 0.05% per day on the unpaid tax, starting July 1 (Article 32 of the Tax Collection Administration Law). ¥10,000 unpaid for a year costs over ¥1,800 in surcharges alone.
- Fines: 50% to 5× the unpaid tax if it's deemed tax evasion, plus the tax and surcharge are still collected.
- Credit record: the bureau flags your individual tax record, which means tighter review of your filings for the next three years.
So the anxiety is misplaced in exactly the wrong direction: ¥380 with no filing requirement is a non-event, but ¥4,000 ignored is a real problem. Check which side of the line you're on — the APP computes both numbers for you — and act accordingly.
Frequently asked questions
If I'm exempt, do I still need to pay the ¥380?
No. The exemption covers both the filing and the payment — "无须申报也无须补税." You owe nothing and file nothing.
My balance due is ¥420 and my income is ¥110,000. Do I file?
No filing needed — your income is under ¥120,000, which satisfies the first condition on its own. The ¥400 threshold only matters when income exceeds ¥120,000.
Does the exemption apply per year, or is it a one-time thing?
Per year. Each annual settlement is assessed on its own: this year's ¥380 doesn't affect next year's filing obligation. If next year you owe ¥4,500 with ¥200,000 of income, you file and pay in full — the exemption doesn't carry over or accumulate.
What if I already filed and paid — can I undo it?
There's nothing to undo; filing when exempt is harmless. You simply did paperwork you didn't have to do. Next year, skip it.
Sources
- 财政部 税务总局公告2023年第32号 (exemption through 2027-12-31)
- 国家税务总局令第57号, 个人所得税综合所得汇算清缴管理办法
- 《中华人民共和国税收征收管理法》 Articles 32, 63 (surcharges and penalties)
- https://finance.sina.cn/2022-03-07/detail-imcwiwss4686876.d.html?vt=4