How To Calculate Personal Income Tax (PIT) In China- Part 1
Although the personal income tax system in China may be difficult to understand, it doesn’t take a genius mathematician to work it out. Here are some simple steps for a better understanding:
Quick calculation guide based on annual income as below (Updated as of 2019 onwards):
E.g. My monthly salary is 20,000RMB,monthly taxable income amount would be 15,000RMB
20,000 – 5000 = 15,000 RMB
*Optional* If I have social insurance, the amount of social insurance contributed by the employee would also be deducted. “Monthly Taxable Income (RMB) – SocialInsurance Employee Contribution”
E.g. My monthly taxable income is 15,000RMB, I am employed under a 12 months contract, My annual cumulativetaxable income would be 180,000 RMB
15,000 x 12 = 180,000 RMB
E.g. According to the table above, myannual cumulative taxable income is 180,000 RMB, it would fall in theGrade 3 tax bracket with a tax rate of 20%, quick deduction amount of 16,920RMB. My annual personal income tax would be 19,080 RMB.
180,000 x 0.2 (20%) – 16,920 = 19,080RMB
www.pro1hr.com
Editor's Favorites, Tap the Links Below:
Your Family Care Center At Shenzhen Yunshan Medical Center
Latest Update on Calvin’s Tailor Shop
[Charity] Cooking With Love
Long-press the QR Code, tap "Extract QR Code" to Follow "shenzhenparty" on Wechat: