| Found your website to be quite helpful -- thank you very much!
If someone can answer my question though, we could all benefit. For those who are interested, the tax for the annual bonus which WAS calculated as a separate monthly salary has been changed. From Jan 2005, you divide the annual bonus by 12 to find the top marginal tax rate – quick deduction factor e.g. RMB 360,000 /12 = 30,000 so tax rate is 25% 36,000 x25% - RMB 1,375 = RMB 88,625 (found the example in http://www.lehmanbrown.com) I found on 2 accountancy firm's 2005 website "According to Chinese Individual Income Tax laws, Expatriates enjoy a standard deduction of RMB 4,000." http://english.tax861.gov.cn/zgszky/zgszky09.htm Beijing Local Taxation Bureau 2003 states “The taxpayers who have no domiciles in China but earn wages and salaries from China or who have domiciles in China and earn wages and salaries from outside China may enjoy additional expense deductions in addition to the regular monthly deduction in computing the taxable income.” BUT… with foreigners or HKers renting a flat in Shanghai who have salaries+bonuses paid in PRC, I don't think we have Expat status, so I'm guessing we'll not eligible for the above additional deductions. Need clarification. HELP? |
Salary in Shanghai