INCOME TAX CALCULATIONS
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!
STEP ONE
Take your monthly salary and deduct 4800 RMB.
STEP TWO
Use the amount left from step one to find out what tax bracket you are in and what the quick deduction is:
Table for Calculating Tax Liability Based on your Monthly Salary
|
Bracket |
Income Remaining from Step One |
Percent Tax |
Quick Deduction |
||
|
1 |
0 – 1,500 RMB |
03% |
0 RMB |
||
|
2 |
1,501 – 4,500 RMB |
10% |
105 RMB |
||
|
3 |
4,501 – 9,000 RMB |
20% |
555 RMB |
||
|
4 |
9,001 – 35,000 RMB |
25% |
1005 RMB |
||
|
5 |
35,001 – 55,000 RMB |
30% |
2755 RMB |
||
STEP THREE
Take the amount left from step one, multiply it by the tax rate and subtract the quick deduction. The amount left is the tax that you owe each month.
EXAMPLES
- Salary: 8500 RMB (which is what all our inexperienced teachers start on)
8000 – 4800 = 3,700
3,700 x 0.10 – 105 = 370 RMB - Salary: 9000 RMB (which is what all our experienced teachers start on)
9000 – 4800 = 4,700
4,700 x 0.20 – 555 = 385 RMB
