Ⅰ. According to Article 17 of the Individual Income Tax Law of the People's Republic of China, a handling fee of 2 percent of the amount of tax withheld shall be paid to withholding agents. 

  Ⅱ. According to Article 17 of the Announcement of the State Taxation Administration on the Issuance of Administrative Measures for Individual Income Tax Withholding and Payment Declaration (Trial Implementation) (Announcement of the State Taxation Administration No. 61 of 2018), a handling fee of two percent shall be paid to the withholding agent for the tax withheld in accordance with the regulations on an annual basis. It does not include taxes that are investigated or ordered to be withheld by tax authorities, judicial authorities, etc.

　　The withholding handling fee received by the withholding agent can be used to improve the tax handling capacity and reward the tax handling personnel.

Ⅲ. According to the Notification of the State Taxation Administration, the Ministry of Finance, and the People's Bank of China on Further Strengthening the Management of Handling Fee for Withholding and Collecting Taxes (the State Taxation Administration, the Ministry of Finance [2023] No. 48), Article 4: "Three generations" tax fee management

　　(1) Budget management

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                3. Withholding, collection of withholding obligations and collection agents should submit related documents of the previous year's “three generations” tax handling fee applications to the tax authorities before March 31 each year. If the “three generations” entities or individuals who do not submit the application in time due to their own reasons shall be regarded as automatically giving up the “three generations” tax handling fee for the previous year. The tax authorities at all levels shall strictly examine the applications for “three generations” tax handling fees, and after the approval of the departmental budget for the current year, the tax authorities at all levels shall pay the “three generations” tax handling fees in a timely manner.

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  This Notification shall be implemented from October 1, 2023.