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SALARY PAYMENT IN Chinese Yuan (CNY, ¥)
CONTRACT LANGUAGES Mandarin & English
PAYROLL TAX 39.50% – 41.20%
PAYROLL CYCLE Monthly
TIME TO HIRE 12 hours
Hire and pay talents
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In China, the average employer tax rate on income is 25%. In some cases this can be reduced to 15% if the industry the company works in is encouraged by the Chinese government (many high tech industries).
The average employee tax rate on income in China ranges between 5% to 45%. China’s individual tax rate is an aggregate tax system, meaning the more income an individual earns the higher percentage tax rate they will need to pay.
| Taxable Income (CNY/RMB) | Tax rate 2023 |
|---|---|
| 0 – 36.000 | 3% |
| 36.000 – 144.000 | 10% |
| 144.000 – 300.000 | 20% |
| 300.000 – 420.000 | 25% |
| 420.000 – 660.000 | 30% |
| 660.000 – 960.000 | 35% |
| 960.000+ | 45% |
Contributions in China can vary based off region. In general, China’s social security contributions include paying into a pension fund, medical insurance, unemployment insurance, worker’s compensation, and a housing fund. It is important to stay compliant with this unique package of social security in China.
Total employer contribution can rage between 22% to 28% depending on region. The city of Guangzhou is on the low end with a 22% total contribution rate. Whereas, Beijing contribution rate can be as high as 26%.
In China, employee contributions include paying into a pension fund, medical insurance, unemployment insurance, and worker’s compensation. The housing fund contribution is only necessary for employers and not employees.
Total employee contributions is usually around 10% of their salary.
Your business can easily hire employees in China without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The tax bureau of China is called the State Taxation Administration (STA). It is a ministerial-level department within the government of the People’s Republic of China under the direction of the State Council. They collect and enforce tax law in China.
Employers are taxed at 25% of income. And they must contribute between 22% and 26% in payroll social security contributions.
Payroll taxes in China include social security funding like paying into a pension fund, medical insurance, unemployment insurance, worker’s compensation, and a housing fund. It is important to stay compliant with this unique package of social security in China.
China – Individual Income Tax
