Tax in China

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 credit of 4800 yuans per month as a foreigner, 2000 yuan if you are a Chinese national. Tax brackets in China are as follow: 
 

Study case:

If  you are a foreign worker in China and that your gross salary is of 15,000 yuans per month, a first tax credit of 4,800 yuans applies. You will consequently be taxed on a monthly income of 10,200 yuans (15,000 – 4,800). You will then be taxed at a rate of 20% corresponding to your income bracket (see above).  

You will have to pay 2,040 yuans in taxes from which an additional tax credit of 375 yuans applies (2,040-375 = 1,665). Your salary will be thus 13,335 yuans after tax. 

 Useful link:

State Administration of Taxation – China

http://202.108.90.130/n6669073/

Print

Subscribe