If you live and work in China for more than 183 days, you will be liable to
pay Chinese taxes on all income received whilst in the country. Personal Income
Tax is charged on a sliding scale, ranging from 5 to 45%. If you also receive
income from overseas, you will be taxed in China on your worldwide income, with
a tax credit given against any tax already paid in other countries.
Taxable pay is calculated by reducing monthly income by the permitted tax free
earnings of 4800 RMB per month for foreigners (1600 RMB for Chinese).
Income tax is charged as follows:
| Percentage |
Taxable Earnings (RMB) |
| 5% |
1 - 500 |
| 10% |
501 - 2,000 |
| 15% |
2,001 - 5,000 |
| 20% |
5,001 - 20,000 |
| 25% |
20,001 - 40,000 |
| 30% |
40,001 - 60,000 |
| 35% |
60,001 - 80,000 |
| 40% |
80,001 - 100,000 |
| 45% |
100,001 and above |
Tax is deducted from your pay each month by your employer
and paid over to the authorities.
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