Income Tax rate as of 2007
Employee Income Tax
|
| | | | | | |
| Total monthly income | Level | Taxable income | Tax calculation formula | Sample taxable income | Sample tax payable |
| 1~ 1600 | 0 | 0 | | 0 | 0 |
| 1601 ~2100 | 1 | less than 500 | taxable income X5% | 400 | |
| 2101 ~ 3600 | 2 | 501~2000 | taxable income X 10% -25 | 1200 | |
| 3601 ~ 6600 | 3 | 2001~5000 | taxable income X 15% -125 | 3000 | |
| 6601 ~ 21600 | 4 | 5001~20000 | taxable income X 20% -375 | 10000 | |
| 21601 ~ 41600 | 5 | 20001~ 40000 | taxable income X 25% -1375 | 25000 | |
| 41601 ~ 61600 | 6 | 40001 ~ 60000 | taxable income X 30% -3375 | 58000 | |
| 61601 ~ 81600 | 7 | 60001 ~ 80000 | taxable income X 35% - 6375 | 72000 | |
| 81601 ~ 101600 | 8 | 80001 ~ 100000 | taxable income X 40% -10375 | 87000 | |
| more than 101601 | 9 | more than 100000 | taxable income X 45% -15375 | 158000 | |
| *Monthly taxable income for local staff is any amount above RMB1600. |
| **Monthly taxable income for expat staff is any amount above RMB4800. |
| ***Total monthly income includes base salary plus commission and bonus. |
| ****Expense reimbursement and employee social insurance are not taxable. |
| Contractor Income Tax |
| | | | | | |
| Total monthly income | Level | Taxable income | Tax calculation formula | Sample taxable income | Sample tax payable |
| 1 ~ 20000 | 0 | 1 ~ 20000 | | 3500 | |
| 20001 ~ 50000 | 1 | 20001 ~ 50000 | taxable income X 30% - 2000 | 45000 | |
| more than 50001 | 2 | more than 50001 | taxable income X 40% -7000 | 85000 | |
*Contractors are non-employees who only work with company on project basis for short term
