Veränderungen im chinesischen Steuerrecht

New Individual Income Tax Law (September 2011)

The reformed Individual Income Tax (IIT) will take effect on September 1st, 2011.

The following changes are:

• The standard monthly deduction for employment income is now increased from RMB 2,000 to RMB 3,500 for Chinese nationals and decreased for foreign nationals from RMB 4,800 to RMB 3,500.

• IIT on income is subject to progressive tax rates, which range from 3 % to 45%. The number of tax brackets is reduced from nine to seven.

• IIT filing deadline is extended to 15 days. Taxpayers and withholding agents have until the 15th day of the following month to file IIT returns and settle the tax due.

Personal Income Tax Rates

Grade   Monthly Taxable Income (RMB)          Tax Rate          Quick Deduction

1          Up to 1500                                           3%                   0

2          1500 - 4500                                          10%                 105

3          4500 - 9000                                          20%                 555

4          9000 - 35000                                        25%                 1005

5          35000 - 55000                                      30%                 2755

6          55000 - 80000                                      35%                 5505

7          Over 80000                                          45%                 13505

In addition the formula used to calculate IIT is as follows:

(Gross Salary – 3,500) x Tax Rate – Quick Deduction.