1) Use the following online “Calculator of Individual Income Tax”.
http://www.xm-l-tax.gov.cn/taxcalculator/psntaxcalc_e.jsp
After you choose the type of property of income, typewrite your monthly amount of income, confirm the nationality/region of yourself, and click on “2006年以前”(before 2006) or “2006年以后（含2006年）” (since 2006), now click on “Process”. The calculator will tell you automatically the “Amount of Individual income tax payable”. In order to begin a new process, just click on “Reset”.
2) Use the formula for computing the amount of tax payable and calculate by yourself.
Any individual who has domicile in China or who has no domicile in China but has resided in China for one year or more shall pay Individual Income Tax on his world-wide income. Any individual who is neither domiciled nor resident in China or who has resided in China for less than one year shall pay Individual Income Tax on the income from sources inside China.
Wages and salaries are taxed on the basis of the balance of taxpayer' s monthly wages and salaries after lump-sum deduction of 4800 yuan as expenses and by applying the nine-grade progressive rates as shown in the table below.
Individual Income Tax Rates Schedule (1)
|
Grade |
Monthly Taxable Income |
Tax Rate (%) |
Quick Deduction |
|
1 |
Income of 500 yuan or less |
5 |
0 |
|
2 |
That part of income in excess of 500 to 2, 000 yuan |
10 |
25 |
|
3 |
That part of income in excess of 2,000 to 5, 000 yuan |
15 |
125 |
|
4 |
That part of income in excess of 5,000 to 20, 000 yuan |
20 |
375 |
|
5 |
That part of income in excess of 20,000 to 40, 000 yuan |
25 |
1375 |
|
6 |
That part of income in excess of 40,000 to 60, 000 yuan |
30 |
3375 |
|
7 |
That part of income in excess of 60,000 to 80, 000 yuan |
35 |
6375 |
|
8 |
That part of income in excess of 80,000 to 100,000 yuan |
40 |
10375 |
|
9 |
That part of income in excess of 100,000 yuan |
45 |
15375 |
The formula for computing the amount of tax payable is:
Monthly taxable income = Monthly aggregate wages/salaries - 4800 yuan
Monthly amount of tax payable = Monthly taxable income ×Applicable rate - Quick deduction
For example:
Mr. Mustermann’s monthly salary in China is 80800yuan.
His monthly taxable income=80800- 4800yuan=76000yuan
His monthly amount of tax payable=76000*35%-6375=20225yuan
Therefore Mr. Mustermann should pay 20225yuan individual income tax for his monthly 80800yuan salary in China.
| 
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