Personal Income Tax
What is the rate?
There is a table. The higher the income, the higher the rate.
Who should pay?
The company should pay directly to Administration of Taxes and will deduct the amount from the employee's salary.
Is there any allowance to taxable amount?
Locals have a Rmb 800 to Rmb 1200 allowance depending on the city and foreigners have a Rmb 4000 allowance. There is no other form of allowance. There are calls for a change to be in line with international practice. Changes are expected to come in the near future.
Are bonus and allowance taxable?
All forms of income, salary, bonus, allowance and all sort of benefits (monetary or non-monetary) are taxable. The law is very tight. Foreigner are entitled to housing, home return and children education benefits without having them counted as taxable income. All other benefits are taxable.
How about a one-time income, like pay for an artist in a concert?
The
tax rate is 20%.