

Human Resources and Payroll in China 2016-2017 (5th Edition) -
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Scenario 1
Scenario 2
Scenario 3
Scenario 4
Scenario 5
Monthly salary
10,000
9,000
8,000
7,000
5,000
Annual salary
120,000
108,000
96,000
84,000
60,000
Annual bonus
0
12,000
24,000
36,000
60,000
IIT on monthly salary
485
315
215
115
6
IIT on annual salary
5820
3780
2580
1380
72
IIT on annual bonus
0
360
2295
3495
11445
Total IIT
5280
4140
4875
4875
11517
Actual percentage of tax paid over total
annual income
4.85%
3.45%
4.0625%
4.0625%
9.5975%
Physical filings
Depending on the city, physical filings of IITmight be necessary. Assuming online filings have already
been made by the company, all that is required for the physical filing is:
• Print out the details of the IIT payments from the Tax Bureau software for each individual and for
each of the months required.
• Stamp each document with the company chop.
• Take to the local Tax Bureau for submission.
It is possible that companies can onlymake physical filings instead of online filings, which is obviously
more time consuming.
The person delivering the filings to the Tax Bureau will be able to see the salaries of each staff
member.Wetherefore advise that companies either send their HRmanager or use someone outside
the organization to do it for confidentiality reasons.
If physical filings are made, the tax payment generally cannot be deducted directly from the
company’s bank account, and a visit to the bank with a form issued and stamped by the Tax Bureau
will be necessary. The bank should receive this form and the payment. The formwill not include the
details of each individual’s tax burden, so no particular confidentiality risk exists for the company
at this stage.