Tax in China

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inbeijing
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Joined: Thu Jul 10, 2014 11:33 am
Country: Beijing

Tax in China

Postby inbeijing » Sat Oct 10, 2015 6:37 pm

Expatriates in China have to pay income tax. But tax credits are available...

If your country has signed agreements with China to avoid double taxation, you will be liable to pay your taxes in China if you have lived in the country for more than 183 days and on your Chinese income only.

After 5 years of residence in China, you will be taxed in the country regardless of the origin of your income.

Taxes are deducted at source by the employer who declares your income and pays for the contributions directly to the Chinese tax authorities.

Regarding tax rates, you will benefit from a tax credits every month as a foreigner, just like Chinese nationals. Tax brackets in China are as follow:


Tax bracket after deduction of the applicable tax credit on your monthly salary Tax rate additional tax credit (yuan)
0 - 1,500 yuans 3% 0
1,501 - 4,500 yuans 10% 105
4,501 - 9,000 yuans 20% 555
9,001 - 35,000 yuans 25 % 1,005
35,001 - 55,000 yuans 30 % 2,755
55,001 - 80,000 yuans 35 % 5,505
Plus de 80 000 yuans 45 % 6,375

Be happy no matter what....

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