Tax in Shenzhen

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  1. #1

    Join Date
    Feb 2006
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    Tax in Shenzhen

    Hi everyone,

    I'm considering being hired by my employer in Shenzhen and I'm wondering what the tax implications are. Unfortunately the chinese government websites arn't that clear.

    From what I can gather I need to pay Individual Income Tax (IIT), plus pension, unemployment insurance, and medical insurance. Of course, these 'insurances' are just a hidden tax, and I kind of assume the 'pension' can never actually be recovered, so it's another form of tax aswell.

    Once these all add together they seem to add up to about 38% of my salary. Does this seem normal?

    I read somewhere else that some of these 'insurances' may be capped at 3 months of the standard salary of the province you work in, but I'm not really sure. It's all rather confusing actually.

    Has anyone worked and payed tax in Shenzhen? Any personal experience on how tax (and 'insurance') is calculated would be much appreciated!


  2. #2

    Join Date
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    China Tax Laws Tax System China. - WorldWide-Tax.com

    Check this website out, Max is 45% tax, depends on how much salary you earn.

    Table of Income Tax Rates in China for an Individual in 2008


    Tax % Monthly Income (CNY)
    5% 1 - 500
    10% 501 - 2,000
    15% 2,001 - 5,000
    20% 5,001 - 20,000
    25% 20,001 - 40,000
    30% 40,001 - 60,000
    35% 60,001 - 80,000
    40% 80,001 - 100,000
    45% 100,001 and above

  3. #3

    Join Date
    Feb 2006
    Location
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    Thanks. I'm aware of the IIT. But I'm wondering how to calculate the employee contribution to pension 'insurance', unemployment 'insurance', medical 'insurance' and other hidden taxes. Any ideas?