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China, People's Republic of
Individual - Sample personal income tax calculation
Last reviewed - 15 January 2024Below is a sample calculation of the annual IIT liability on comprehensive income derived by a resident individual for the year 2023 (for illustrative purpose).
Assumptions:
- The individual derives employment income of CNY 35,000 per month and one-off remuneration for labour services in the amount of CNY 50,000.
- The individual makes monthly contribution of CNY 5,000 to China statutory social security and housing fund (i.e. specific deductions).
- The individual claims the following specific additional deductions for the whole year:
- Child education for one qualified child.
- Mortgage interest.
| Calculation of annual IIT on comprehensive income | CNY | CNY |
| Employment income | 420,000 | |
| Remuneration for labour services | 50,000 | |
| Less: 20% of gross remuneration for labour services | (10,000) | |
| Total comprehensive income | 460,000 | |
| Less: Personal deductions | ||
| Standard basic deduction | (60,000) | |
| Specific deductions | (60,000) | |
| Specific additional deductions | (36,000) | (156,000) |
| Taxable comprehensive income | 304,000 | |
| Applicable tax rate @ 25% | 76,000 | |
| Less: Quick deduction | (31,920) | |
| Tax on comprehensive income | 44,080 |
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