Expat tax threshold remains unchanged
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China.org.cn, July 29, 2011
The income tax threshold for foreign employees in China will remain unchanged when personal tax thresholds are raised.
Now the threshold for expats is 2,000 yuan with an extra 2,800 yuan.
From September 1, China will raise the threshold for foreigners to 3,500 yuan. However, the deductions for expenses, a special subsidy for foreigners, have been reduced by 1,500 yuan, to 1,300, leaving them with the same 4,800 yuan benefit.
A foreign empolyee in China, who earns more than 41,400 yuan a month, has to prepare to be taxed more heavily.
Under the new income tax regulations, if a foreigner earns 62,000 yuan a month, he or she will be taxed an extra 205 yuan a month, according to Tax agency Beijing Jingdu CPAs.
The threshold was raised from 800 yuan to 1,600 yuan in 2006, when expats' extra benefit remained at 3,200 yuan, giving them a total deduction of 4,800 yuan from the previous 4,000 yuan.
The threshold was further raised to 2,000 yuan in 2008.
