China Individual Income Tax – Here’s What to Know!

Each individual who earns money needs to pay Income tax. Whether you reside in your own country or a foreign country, it’s mandatory to pay the amount on time. But the taxation rules vary according to the country. And in China, it’s quite complex. Are you going to be a taxpayer in this country? Then it’s a must to be well aware of the China Individual Income Tax first. And that’s where this article can help. So, keep on reading! What is Individual Income Tax? Individual Income Tax refers to a tax levied on salaries, wages, and other income of a person. This type of tax is the source of revenue for the government. This tax rate increases with income. It means those who earn high income give more tax as compared to low-income people. Now, let’s know about how this taxation works in China in the following lines. How Individual Income Taxation Works in China The State Administration of Taxation (SAT) uses two criteria to determine whether the person is tax-resident or non-tax-reside...