Tel: (86-10) 5879 3535

Unit 703, Block A, Building No. 1,
Genertime International Center,
Jia 3 Yongandongli, Jianguomenwai Avenue,
Chaoyang District, Beijing 100022,PRC.

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Tel: (86-10) 5879 3535

Unit 703, Block A, Building No. 1,
Genertime International Center,
Jia 3 Yongandongli, Jianguomenwai Avenue,
Chaoyang District, Beijing 100022,PRC.

Google Map

Comprehensive income tax rates

For residents, calculation of IIT on annual comprehensive income is based on progressive tax rates (see Table I below) using the following formula:

(Annual taxable income x Tax rate) - Quick deduction

Table I

Annual taxable income (CNY*) (1)

Tax rate (%)

Quick deduction (CNY)

0 to 36,000

3

0

Over 36,000 to 144,000

10

2,520

Over 144,000 to 300,000

20

16,920

Over 300,000 to 420,000

25

31,920

Over 420,000 to 660,000

30

52,920

Over 660,000 to 960,000

35

85,920

Over 960,000

45

181,920

*Renminbi

   

 

(1) Notes:

Annual taxable income after deducting the standard basic deduction, specific deductions, specific additional deductions, and other allowable deductions (see the Deductions section as following).

 

For non-residents, IIT on employment income, remuneration for labour services, author’s remuneration, and royalties is calculated by each category on a monthly or transaction basis at the below progressive tax rates (see Table II below).

 

Table II

Monthly taxable income (CNY)

Tax rate (%)

Quick deduction (CNY)

0 to 3,000

3

0

Over 3,000 to 12,000

10

210

Over 12,000 to 25,000

20

1,410

Over 25,000 to 35,000

25

2,660

Over 35,000 to 55,000

30

4,410

Over 55,000 to 80,000

35

7,160

Over 80,000

45

15,160

 

 

Deductions

 

Standard basic deduction

 

As of 1 January 2019, the amount of the standard basic deduction is CNY 60,000 per annum (i.e. CNY 5,000 for monthly tax withholding purpose).

 

Specific deductions

 

Chinese social security contributions made in accordance with the Social Security Law and contributions made to the statutory Housing Fund are deductible for IIT purpose.

 

Specific additional deductions

 

Residents deriving comprehensive income, if eligible, can claim the following specific additional deductions when calculating the annual taxable income:

 

Deductible item

Deductible amount (CNY)

 

Child education

1,000 per child per month

 

Continued education

400 per month or 3,600 per year depending on the type of qualified continued education

 
 

Mortgage interest

1,000 per month

 

Rental expense

800/1,100/1,500 per month depending on the location

 
 

Elderly care

Up to 2,000 per month depending on the status of the taxpayer

 
 

Major medical expense

Qualified self-paid portion above 15,000 and capped at 80,000 per year for each eligible individual