China, People's Republic of
Below is a sample calculation of the annual IIT liability on comprehensive income derived by a resident individual for the year 2019 (for illustrative purpose).
- 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|
|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 additional deductions||(24,000)||(144,000)|
|Taxable comprehensive income||316,000|
|Applicable tax rate @ 25%||79,000|
|Less: Quick deduction||(31,920)|
|Tax on comprehensive income||47,080|