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Topic: news Workplace Face Off: Chinese vs. Foreign Employees

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comment | 28642 | 0

@Wufnu:
The taxes on income in China are as follows:
Income in RMB % of Gross income to be paid (less X amt of RMB)
1 --- 499 5% - 0
500 -- 1,999 10% - 25
2,000 -- 4,999 15% - 125
5,000 - 19,999 20% - 375
20,000 - 39,999 25% - 1,375
40,000 - 59,999 30% - 3,375
60,000 - 79,999 35% - 6,375
80,000 - 99,999 40% - 10,375
100,000 45% - 15,375

**NOTE**
There is a 4,800 Yuan exemption for Expats & only a 2,000 Yuan
exemption for Chinese people before taxes on income kick in.

E.g.
An expat that earns a gross of 10,000 for the month will pay taxes on
5,200 Yuan of it; the taxes to be paid would be 665 Yuan (5,200 yuan
taxable income * 20% - 375). The expats net income would be 9,335 Yuan.

The same scenario except it is a Chinese person. Exemption of
2,000 Yuan, so the taxable income would be 8,000 Yuan. The taxes
for the Chinese person would be 1,225 Yuan (8,000 yuan taxable
income * 20% - 375). The Chinese person's net income would be
8,775 Yuan

Hope this was helpful and/or informative.

~~Wanmei

Jun 13, 2012 01;18
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