6. Individual Income Tax
( 1) The individul income, such as wages and salaries of foreigners working in China shall be taxed at the following progressive rates:
Individual Income Tax
Grade |
Monthly Income Taxable(RMB) |
Tax Rates(%) |
1 |
The section less than 500 |
5 |
2 |
The section from 500 plus to 2,000 |
10 |
3 |
The section from 2,000 plus to 5,000 |
15 |
4 |
The section from 5,000 plus to 20,000 |
20 |
5 |
The section from 20,000 plus to 40,000 |
25 |
6 |
The section from 40,000 plus to 60,000 |
30 |
7 |
The section from 60,000 plus to 80,000 |
35 |
8 |
The section from 80,000 plus to 100,000 |
40 |
9 |
The section exceeding 100,000 |
45 |
Note: The Monthly Income Taxable refers to the remaining sum of an individual's rnonthlincornafter RMB 800 or an extra deductible sum is deducted as stipulated by Article 6 of the Law on Individual Income Tax. With regard to a foreigner, it refers to the remaining sum of his monthlyincomafte RMB 4,000 is deducted.
(2) Individual income tax shall also be levied on those who have income derived from working in any of the following service businesses in the territory of China: design, decoration, installation, drafting, chemical analysis, testing, medicine, law, accounting, consulting, giving lecture, press, radio broadcasting, translation, examination and checking of manuscript, writing, painting, sculpture carving, movie and television, audio recording, video recording, performance, display, advertising, exhibition, technical service, introduction service, brokerage service, agency service, and others. The income taxable each time is the remaining sum of the income after RMB 800 is deducted if the said income is under RMB 4,000. If the said income is over RMB 4,000,20% of the income shall be deducted and the remaining sum is the amount taxable. The tax rate is 20%. If an individual's income taxable is over RMB 20,000 but under RMB 50,000, the tax rate to the part which exceeds RMB 20,000 shall be increased by 50% from its original rate. The tax rate to the part which exceeds RMB 50,000 shall be increased by 100% from its original tax rate. |
