Individual income tax liability in China is calculated according to three factors:

1. the source of an individual's income; 
2. whether an individual is determined under Chinese law to be domiciled in China for tax purposes;
3. and the length of their stay in China.

The following calculator provides quick computation of income tax payable and compulsory social insurance obligations.

Each tax case is unique and the tax and welfare regulatory environment changes regularly therefore this tool may not be applicable to your actual situation. Please contact an S.J. Grand representative to discuss your personal tax advisory needs.

Usage disclaimer: This table is provided as a general reference only. S.J Grand will not assume any responsibility for the accuracy of information data produced nor any liability for decisions made in relation to such data.

Rates valid as at September 1, 2011

All figures in Chinese renminbi (RMB)

Social insurance rate breakdown

The following table contains rates and the base and cap wages for calculation of employee and employer social insurance obligations.

According to the “Interim Measures for Participation in Social Insurance System by Foreigners Employed in China", from October 15, 2011, these charges are compulsory for all foreign employees with the exception of housing fund contributions. Exceptions exist for citizens of countries that have signed bilateral social insurance treaties with China. To date, only Germany and South Korea have concluded such agreements.

For assistance in calculating your social insurance obligations, please contact your S.J Grand representative.

Rates valid as at September 1, 2011

Example:

To calculate medical insurance for a foreign worker in Beijing on a gross monthly salary of RMB 20000

Calculable Basis (Beijing)

Base                      RMB 2521           (0.6 x average Beijing monthly salary)
Cap                        RMB 12603         (3 x average Beijing monthly salary)

As a salary of RMB 20000 per month exceeds the maximum calculable basis, this worker is only liable for a payment based on a salary of RMB 12603 per month.

Tax rates - Wages

Rates valid as at September 1, 2011

Tax rates - Independent Services

Rates valid as at September 1, 2011