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ymmv
Joined: 14 Jul 2004
Posts: 387
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 Posted: Tue Apr 22, 2008 3:04 pm Post subject: |
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Noodles:
Go back and look at the link I posted earlier. It gives a thorough explanation of how to calculate taxes especially Points 9 and 10 of that post. Point 10 relating to the Quick Calc Method is the easiest way to figure it out.
That's also the table that skiing's posted in this thread. What you need to know about using that table, as skiing mentioned also, is that the RMB amount in the last column is DEDUCTED from the TAX calculated in the appropriate band/category/bracket you fall into.
Simple example, if your salary is 7000, you subtract the 4800 exclusion to arrive at 2200 TAXABLE income. 2200 TAXABLE falls into the:
"2000 - 5000 15% 125 RMB" on the table
It means your taxable income of 2200 is taxed at 15% or 330.
Now the right-hand figure (125 RMB) is your "Quick Calc Deduction) so you subtract it from 330 ... 330-125=205 which is the tax payable.
So on a 7000 salary, you net 6795.
On 15000, the Taxable Income would be 15000-4800=10200.
That falls into the:
5000 - 20000 20% 375 RMB bracket.
The tax on 10,200 @ 20% would be 2040
Subtract the Quick Calc Deduction of 375 for that bracket and you get a tax payable of 2040-375=1665.
Net pay on 15000 is thus 15000-1665=13335
If you want to work it out through the Official Tax Table (listed in point 9 of the old post) you'll get the same result but with a lot more math.
Or you could ask HFG/North China Laowei (sic) what his friends in the Guangzhou Tax Bureau say.
Last edited by ymmv on Tue Apr 22, 2008 3:10 pm; edited 1 time in total |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Tue Apr 22, 2008 3:06 pm Post subject: |
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Oops.
Bendan posted his response while I was in the process of doing mine. I see he arrived at the same result, but much more succinctly. Good on him! |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Tue Apr 22, 2008 3:25 pm Post subject: |
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| bendan wrote: |
The allowance for Chinese people is being increased from 1600 to 1800, but I don't know if that means the foreigners allowance will also move up by 200, to 5000. |
I'd heard the same thing and I heard it was effective April 1. As with the increase back in January, 2006 it wasn't clear for a few weeks whether the general exclusion also applied to foreigners. We discussed it at that time here:
http://forums.eslcafe.com/job/viewtopic.php?t=34056&start=0
If it works the same way as back then, then yes, the foreigner exclusion will be raised to 5000.
My direct pay hits my bank account tomorrow so I'll see if my tax has been reduced.
Also, it's worth reiterating what Joe C. pointed out in this thread earlier: the tax rate table only applies to your regular, salaried job here. Other income (eg. part-time services) is taxable at a flat 20%. |
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The Noodles
Joined: 24 Aug 2005
Posts: 202
Location: China, Chengdu
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| Posted: Tue Apr 22, 2008 4:58 pm Post subject: |
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lol! i told you guys I was awful at maths 
But I think i've got it now. So I am going to use the same formula to figure out the 5000 deduction you guys are talking about.
15000-5000=10000
10000*20/100=2000
2000-375=1625
Therefore
15000-1625=13375
So i'd be earning 13375 RMB per month.
Sounds good? |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Tue Apr 22, 2008 5:57 pm Post subject: |
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| You got it. You're a quick learner! |
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The Noodles
Joined: 24 Aug 2005
Posts: 202
Location: China, Chengdu
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| Posted: Tue Apr 22, 2008 6:39 pm Post subject: |
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| maybe you guys are good teachers |
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Joe C.
Joined: 08 May 2003
Posts: 993
Location: Witness Protection Program
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| Posted: Wed Apr 23, 2008 10:21 am Post subject: |
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| ymmv wrote: |
| bendan wrote: |
The allowance for Chinese people is being increased from 1600 to 1800, but I don't know if that means the foreigners allowance will also move up by 200, to 5000. |
I'd heard the same thing and I heard it was effective April 1. As with the increase back in January, 2006 it wasn't clear for a few weeks whether the general exclusion also applied to foreigners. We discussed it at that time here:
http://forums.eslcafe.com/job/viewtopic.php?t=34056&start=0
If it works the same way as back then, then yes, the foreigner exclusion will be raised to 5000.
My direct pay hits my bank account tomorrow so I'll see if my tax has been reduced.
Also, it's worth reiterating what Joe C. pointed out in this thread earlier: the tax rate table only applies to your regular, salaried job here. Other income (eg. part-time services) is taxable at a flat 20%. |
The tax bureau claims that the allowance for expats will not increase as that for Chinese people.  |
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Surfdude18
Joined: 16 Nov 2004
Posts: 651
Location: China
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| Posted: Wed Apr 23, 2008 1:11 pm Post subject: |
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| ymmv wrote: |
Also, it's worth reiterating what Joe C. pointed out in this thread earlier: the tax rate table only applies to your regular, salaried job here. Other income (eg. part-time services) is taxable at a flat 20%. |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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