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1. IIT ISSUES FOR EXPARTIRATES WORKING IN PRC
1.4 INDIVIDUAL INCOME TAX ("IIT") ISSUES AND CALCULATIONS
1.41 TAXABLE INCOME:
Examples of taxable income / benefits for foreign nationals working in PRC ("expatriates"):
- Wages and basic salaries;
- Other benefits and gains in connection with the employment;
- Cost of living and vehicle allowances;
- Tax reimbursements;
- Any compensations for services rendered;
- Stock awards and stock options;
- Bonus and cash allowances;
- Occasional gains;
- Any gains from the transfer of property;
- Subsidy; and
- Severance payments
1.42 STANDARD DEDUCTIONS:
- RMB4,800 for expatriates at monthly basis;
- RMB2,000 for local PRC resident at monthly basis; and
- Approved charitable donation
1.43 INDIVIDUAL INCOME TAX RATES AND CALCULATION FORMULA:
Taxable Income after
standard deduction (RMB) | Tax Rate (%) | Quick Reckoning
Amount (RMB) |
| 0-500 | 5 | 0 |
| 501-2,000 | 10 | 25 |
| 2,001-5,000 | 15 | 125 |
| 5,001-20,000 | 20 | 375 |
| 20,001-40,000 | 25 | 1,375 |
| 40,001-60,000 | 30 | 3,375 |
| 60,001-80,000 | 35 | 6,375 |
| 80,001-100,000 | 40 | 10,375 |
| Over 100,000 | 45 | 15,375 |
Tax payable = Taxable Income X Applicable Tax Rate Less Quick Reckoning Amount
1.44 IIT TAX PLANNING SERVICES RENDERED TO EXPATRIATES WORKING IN PRC
We can tailor-made the IIT tax planning services to such expatriates at the day one before they will start to work in PRC. Please contact us.
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