Income tax for China

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LinShiwen

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Joined: Apr 04, 2005
Posts: 50
Location: St. Louis, MO / Chicago, IL
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Posted: Apr 12, 2005 - 02:34 PM
Post subject: Income tax for China

I found this information on this site (2002)

Income Tax rate as of 2002 Here is a simple and legal way to calculate your tax. Monthly Taxable Income less than RMB 500: (Salary -1000) *5% Monthly Taxable Income RMB 500 to 2,000: (Salary -1000)*10% -25 Monthly Taxable Income RMB 2,000 to 5,000: (Salary -1000)*15% -125 Monthly Taxable Income RMB 5,000 to 20,000: (Salary -1000)*20% -375 Monthly Taxable Income RMB 20,000 to 40,000: (Salary -1000)*25% -1,375 Monthly Taxable Income RMB 40,000 to 60,000: (Salary -1000)*30% -3,375 Monthly Taxable Income RMB 60,000 to 80,000: (Salary -1000)*35% -6,375 Monthly Taxable Income RMB 80,000 to 100,000: (Salary -1000)*40% -10,375 Monthly Taxable Income more than RMB 100,000: (Salary -1000)*45% -15,375 For example , if your monthly salary is RMB 20,000, the tax you should pay is (20,000-1000)*20% -375 =RMB 3,425. If your monthly salary is RMB 10,000, the tax you should pay is (10,000-1000)*20% -375 = RMB 1,425.

Is this still accurate for 2005? Also, (jsut to be clear) it is the case that when living in China for more than 330 days, one only needs to pay income tax to China and not to the US if you earn less than 80,000$ Do I have this right?

Thanks