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Human Resources and Payroll in China 2016-2017 (5th Edition) -
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Individual Income Tax Calculator – Chinese Nationals
Payable tax = Monthly taxable income x Applicable tax rate – Quick Deduction
Monthly taxable income =
Base salary + Fringe Benefits – Employee social security / housing fund contributions* – RMB 3,500
Fringe benefits include:
• Non-mandatory insurance policies
• Various fixed allowances such as housing allowances
• Contributions to corporate retirement funds or wealth
accumulation funds
• Bonuses
• Fringe benefits should be distinguished from reimbursements,
which are not part of gross income. Employees should provide
official invoices (fapiao) for reimbursement each month.
Chinese nationals are entitled to a RMB 3,500 standard deduction.
* Not all cities allow social security and housing fund payments to be deducted.
Individual Income Tax Calculator – Non-Chinese Nationals*
Payable tax = Monthly taxable income x Applicable tax rate – Quick Deduction
Monthly taxable income =
Base salary + Fringe Benefits – Mandatory social welfare in home country/China – RMB 4,800 - Deductible allowances
Fringe benefits include:
• Non-mandatory insurance policies
• Various fixed allowances such as housing allowances
• Contributions to corporate retirement funds or wealth
accumulation funds
• Bonuses
• Fringe benefits should be distinguished from reimbursements,
which are not part of gross income. Employees should provide
official invoices (fapiao) for reimbursement each month
Non-Chinese nationals are eligible for a RMB 4,800 standard
deduction.
Deductible allowances:
• Allowances for housing, meals, relocation and laundry expenses
• Relocation expenses at the start or end of employment in China
• Reasonable business travel expenses and two personal trips to the
individual’s country of origin per year
• Reasonable allowances for Chinese classes and children’s
education
• These allowances are only deductible if they are stipulated in the
contract, and the employee can provide an official receipt (fapiao)
• Some details in tax policy vary per city
*Non-Chinese nationals include citizens from Hong Kong, Macau and Taiwan