Personal Income Tax Withholding Rates – Table 1
| Level | Annual Taxable Income | Rate (%) |
|---|---|---|
| 1 | No more than 36,000 | 3 |
| 2 | Between 36,000 and 144,000 | 10 |
| 3 | Between 144,000 and 300,000 | 20 |
| 4 | Between 300,000 and 420,000 | 25 |
Do you have to pay individual income tax in China?
Individuals working in China – both Chinese and foreign – are required to pay individual income tax (IIT) on their earnings. China recently revised its IIT law, introducing a number of changes to ease the tax burden for low- and mid-income earners while taking a tougher stance on high-earners and foreign workers.
How to calculate tax payable for foreign employees in China?
This allows you arrive at the amount of tax payable by entering the full income into the highest applicable tax rate, and then subtracting the Quick Deduction amount. The formulas for calculating an individual’s tax payable are: Foreign individuals employed in China are eligible to a standard deduction of RMB 4,800.
What are the tax benefits of working in China?
Contributions to Chinese social insurance as well as other employment benefits can also be added to pre-tax deduction, as long as relevant requirements are met and relevant fapiao are provided. Employment benefits include: Reasonable business travel expenses and two personal trips to the individual’s country of origin; and,
When did the new tax law come into effect in China?
Official text of China’s individual income tax law that took effect in 2019, and the instructions for Chinese abroad issued in 2020. Why China’s rich are finding it harder to run from the tax collecter under the global Common Reporting Standard. China Briefing’s summary of what you need to know about this law if you’re a foreigner working in China.
