Job Discussion Forums

[sticep]

I was wondering what the standard taxes were in China. In my contract, the only thing concerning taxes is a brief statement stating "income taxes and national pension contribution shall be withheld from the salary in accordance with Chinese tax law. Any input would be great about the specifics of taxation in China. Thanks

[johntpartee]

VERY low. The first 4800 isn't taxed at all, anything over that is about 1/3 of one percent (unless you get WAY high wages). The typical university pay will have 10-25 yuan deducted per month.

[tangal]

Here's a tax-rate worksheet provided by my university (Note: this is how the form is typewritten, not sure why it says nine-grade but there are only 7 grades shown:

According to the tax regulation in China, wages and salaries are taxed on the basis of the balance of tax payer's monthly wages and salaries after lump-sum deduction and by applying the nine-grade progressive rates as shown in the table below. The lump-sum deduction is published by the government and currently, it is 3,500 Yuan for Chinese and 4,800 Yuan for ex-pats.
Individual Income Tax Rates Schedule:
Grade / Monthly Taxable Income / Tax Rate (%) / Quick Deduction

1 Income of 1500 yuan or less / 3 / 0
2 1500 to 4,500 yuan / 10 / 105
3 4,500 to 9,000 yuan / 20 / 555
4 9,000 to 35,000 yuan / 25 / 1005
5 35,000 to 55,000 yuan / 30 / 2755
6 55,000 to 80,000 yuan / 35 / 5505
7 Income in excess of 80,000 / 45 / 13505

Formula: Income tax= (Gross salary-lump sum deduction)* Tax Rate- Quick Deduction
E.g. An expat’s monthly gross income is: 8,000.00 Yuan.
The monthly individual income tax is: (8000-4800)*10%-105=215 Yuan

THAT SHOULD DO THE TRICK!

[Big Worm]

I think that's wrong. There's another increment around 25,000.

Not that any of you suckers would know or care about what happens when you make that much.

[midian3x]

[mambawamba]

Sinocast has a good personal income tax calculator;

http://sinocast.com/tax.jsp

Damn it hit submit, grrr must be the heat. Try and get a gross and net figure on your salary before you sign the contract.

[GeminiTiger]

How it actually works out will depend on the local situation.

For example in Suzhou you can be taxed 500 rmb on 4500 and in other places you can make 4800 and not be taxed at all.