Income tax is directly taken from your salary each month and is directly paid to the local and state tax authorities. The government run tax website verifies that the monthly deductions for each teacher are correct.
When calculating your monthly tax burden in China it is important to remember several things:
- The first 4800 RMB of your month salary is tax free!
- Housing allowances and airfare are tax free!
Take your monthly salary and deduct 4800 RMB.
Use the amount left from step one to find out what tax bracket you are in and what the quick deduction is: