What You Need To Know about Tax Filing in China

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Tax filing in China is a tricky subject. There are tax laws, tax rates, and tax brackets for foreigners living in China which can be confusing to navigate. In this post, we’ll explore some of the basics of tax filing in China so that you know what to expect when it comes time to file your taxes with the Chinese government.

In order to be eligible for tax-free status, foreign workers must have been residing in China on or before December 31st of the previous year and their employment contract must not have expired by January 1st of the current year. If these stipulations are met, then they will only need to pay income tax if their salary exceeds RMB 150,000 per annum (if they reside in Beijing or Shanghai, the tax-free salary limit is RMB 250,000 per year).

Tax rates in China are progressive. This means that as a taxpayer’s income increases so do the tax rate they pay on their total income. In 2016 tax brackets for salaries ranged from 0% to 45%. The tax tables below will give you an idea of tax rates depending on salary.

If you are a foreigner working in China and expect to receive more than the tax-free limit (or if your employer has not taken out Social Insurance for you) then it is likely that you will need to file an annual income tax return by May 31st of the following year. The good news is that tax returns are not complicated and can be filed online.

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JS Bin
Jennifer Alex
Jennifer Alexhttps://howwedoo.com/fbise-past-papers/
Howwedoo is a platform where you get all educational tips and Tricks, Udemy Free Courses with certificate, Exams Notes, Howwedoo provide all past papers with a complete solution, like Fbise Past Papers, Model papers, Notes for All Classes A Level, O level Past papers

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