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.