My friend, if your monthly salary is RMB 40,000, do you know how much individual income tax you have to pay?

If you want to know the answer and the rule of calculation, please follow me.

Today, I will only tell you the calculation of individual income tax of salary or wage, because there're 10 kinds of individual income tax, including salary or wage, in China, I can't write all of them in one article. If you want to know more, you could leave a message to me.

Before we start to calculate, you need to know these :

1. It is one kind of progressive tax that Chinese individual income tax is. And it has 9 levels.

2. There is a Subtraction Part, which will be take away first. Subtraction Part for Chinese people is RMB 2,000, for foreigner, is RMB 4,800.

Now, let's begin:

1. Take away the Subtraction Part: 40,000 - 4,800 = 35,200 (RMB )

2. Look for the level of your tax in the policy:

It is the fifth level. The rule of your level is:

* Fifth level: If you take away the Subtraction Part of your salary or wage, there will be more than RMB 20,000, but less than RMB 40,000, the percentage of your individual income tax will be 25%. And there will be a Quick Calculating Deduction, which is RMB 1375, must to be cut away.

So, your tax will be: 35,200 * 25% -1375 = 7425 (RMB)

And if your are chinese, it will be RMB 8,125 ( Formula：38,000 * 25% -1375), it seems that to be a foreigner is much better, HAHA!

Maybe several months later, this year, Chinese Government will modify the policy of individual income tax, I'll update it for you at that time.

And then, if your monthly salary is RMB 60,000, how much individual income fax do you need to pay?

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Maybe attached information will help you:

1. First Level : If you take away the Subtraction Part of your salary or wage, there will be less than RMB 500, the percentage of your individual income tax will be 5%. No Quick Calculating Deduction.

2. Second Level: If you......, there will be more than RMB 500, but less than RMB 2,000, the percentage of your individual income tax will be 10%. And Quick Calculating Deduction is RMB 25.

3. Third Level: If you ......, there will be more than RMB 2,000, but less than RMB 5,000, the percentage of your individual income tax will be 15%. And Quick Calculating Deduction is RMB 125.

4. Fourth Level: If you ......, there will be more than RMB 5,000, but less than RMB 20,000, the percentage of your individual income tax will be 20%. And Quick Calculating Deduction is RMB 375.

5. Sixth Level: If you ......, there will be more than RMB 40,000, but less than RMB 60,000, the percentage of your individual income tax will be 30%. And Quick Calculating Deduction is RMB 3375.

6. Seventh Level: If you ......, there will be more than RMB 60,000, but less than RMB 80,000, the percentage of your individual income tax will be 35%. And Quick Calculating Deduction is RMB 6375.

7. Eighth Level: If you ......, there will be more than RMB 80,000, but less than RMB 100,000, the percentage of your individual income tax will be 40%. And Quick Calculating Deduction is RMB 10375.

8. Ninth Level: If you ......, there will be more than RMB 100,000, the percentage of your individual income tax will be 45%. And Quick Calculating Deduction is RMB 15375.

And if you want to know more about Chinese HR policy, welcome to my another blog:

http://blog.sina.com.cn/u/1879100727