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Q: Can you tell me about income tax?
On a salary of 19000 rmb a month can you tell me how much tax I would need to pay. I read it's 20percent. Does that mean it'd be 4800 a month?
This is question has been asked before but none of the answers I find are clear. Some make it out to be 500 to 1000. I'm really stupid, help me out
do you need to pay national insurance?
9 years 4 weeks ago in Money & Banking - China
AFAIK it is a sliding scale which works something like this:
First 5,000 tax free
Next 2,500 from is 5,000 to 7,500 is 5%
Next 2,500 from 5,000 to 10,000 is 10%
So on 10,000 you will pay 375yuan
Something like that. Don't know the rest of the scales off my head, but you wont pay a fixed % on your entire salary.
I agree with 'ben' statement of yours,
buTT....for other reasons than 'I don't know how....'.
You could ask your employer: 'I know my gross salary. Can you tell me please, how much will be my net salary after all deductions?'
'School will/must pay National insurance for FT' by my Contract. Salary stated in Contract is 'net salary'.
'National insurance' provision is Chinese law!
After they'll show you your Contract, it might state 'FT is responsible to cover Insurance cost'.
Ignore this since I didn't paste the table correctly. Refer below.
Attached below is a table my company gave me that breaks down the different tax types I'm responsible for paying. I input your salary of 19,000 for your reference, but it's very easy to input your salary into Excel to calculate the amount of tax you should pay.
This is just the way my company calculates my tax, which is directly proportional to my salary and not according to a tax bracket system. Maybe some companies use the tax bracket system, but my company does taxes this way. I think my school my first year used the tax bracket system. Maybe schools use the tax bracket system and corporate businesses use my company's system? My company is in Shenzhen so maybe different places will have different tax rates.
AFAIK it is a sliding scale which works something like this:
First 5,000 tax free
Next 2,500 from is 5,000 to 7,500 is 5%
Next 2,500 from 5,000 to 10,000 is 10%
So on 10,000 you will pay 375yuan
Something like that. Don't know the rest of the scales off my head, but you wont pay a fixed % on your entire salary.
See Yongge's post above. Actually the first 4800 is tax free. If your employer tells you otherwise he/she is cheating you. If there is any doubt, you can go to the local tax department with your passport and get receipts on all taxes that you pay. On an income of 19,000 per month you would be looking at a tax bill in the neighborhood of 3,000 per month.
dokken:
Yonge says 375. You say 3000. Are you including national insurance?
dongbeiren:
375 for 10,000, 3,000 for 19,000. I'm not sure what you mean by national insurance. I'm referring to income tax.
On 10k it will be around 375. Not sure what the scales are beyond that.
dokken:
Yeah I wish I could start this thread again. I meant how much will my. Net pay be.
You'll find the seven tax bands, information on the tax free sum & how to calculate your monthly tax liability here:
http://www.shanghaihalfpat.com/income-tax-for-foreigners-in-china/
It's something you don't have to pay in China.
Hotwater:
I think for this answer you should change your name to Wrongfully Wrong!
