China Personal Income Tax

Hi all, let's talk about the personal Income tax in China for expats like us.

Comparing to Singapore, it is really high!!

The first RMB4800 is non-taxable and there are 9 levels in China income tax:-

Level Monthly Income Tax Rate % Deduction

1) RMB500 or less

Tax Rate 5%

Deduction 0

2) RMB501 to 2000

Tax Rate 10%

Deduction RMB25

3) RMB2001 to 5000

Tax Rate 15%

Deduction RMB125

4) RMB5001 to 20000

Tax Rate 20%

Deduction RMB375

5) RMB20001 to 40000

Tax Rate 25%

Deduction RMB1375

6) RMB40001 to 60000

Tax Rate 30%

Deduction RMB3375

7) RMB60001 to 80000

Tax Rate 35%

Deduction RMB6375

8) RMB80001 to 100000

Tax Rate 40%

Deduction RMB10375

9) RMB100001 above Tax

Rate 45%

Deduction RMB15375

so for example, if my income is RMB18000/month

That is level 4
Tax Rate 20%
Deduction RMB375

This is how i will calculate my taxes:-

RMB18000 - RMB4800 = RMB13200 x 20% = 2640 - 375 = RMB2265

Take for another person income is RMB 65000/month
That is level 7

Tax Rate 35%
Deduction RMB6375

This is how his taxes will be:-

RMB65000 - RMB4800 = RMB60200 x 35% = RMB21070 - 6375 = RMB14695

The above information is correct at the time of publishing

More information can be found at http://de2.mofcom.gov.cn/aarticle/bilateralvisits/200603/20060301721962.html?

The Chinese government has made it easier to calculate your taxes with the below site, just key in your monthly income:-

http://www.xm-l-tax.gov.cn/taxcalculator/psntaxcalc_e.do

Taxes are so high!!

That's all!!