Income tax in China for foreigners

As a foreigner working in China, income tax is something you need to think about, but what is China’s tax policy for foreigners working in China?  Sometimes it’s difficult to calculate how much your company should deduct from your income, other times you need to check if your company has duduced the right amount from your income.  After a little research, I found this little piece of software written by Shanghai Tech Writer that automatically calculates your income tax.   Click on the link below to download it.

Download

Here’s how to calculate your income tax:

Tax = ( Taxable Income * Tax Rate ) – Deduction
Taxable Income = ( Total Income – Initial Deduction – Reimbursable Deduction )
Initial deduction is RMB4,800 for foreigners.