According to the provisions of Article 7 of the Individual Income Tax Law of People's Republic of China (PRC), income obtained by individual residents from outside China can be deducted from the individual income tax paid abroad, but the amount of credit shall not exceed the taxable amount of taxpayers' overseas income calculated in accordance with the provisions of this Law.
The taxable amount mentioned here refers to the income obtained by resident taxpayers from outside China, which is calculated according to the expense deduction standard stipulated in the tax law and the applicable tax rate due to different countries or regions and different tax items. The sum of the taxable amount of different tax items in the same country or region is the deduction limit of that country or region.
Extended data:
Personal income tax has three different tax rates according to different tax items:
Comprehensive income (income from wages and salaries, income from labor remuneration, and income from royalties) is subject to a 7-level progressive tax rate, and tax is calculated according to the monthly taxable income. The tax rate is classified according to the taxable income of individual monthly wages and salaries, with the highest level being 45%, the lowest level being 3%, and the ***7 level.
Operating income is subject to 5 levels of excess progressive tax rate. The income from production and operation of individual industrial and commercial households and the annual taxable income from contracted operation and lease operation of enterprises and institutions are classified into grades, with the lowest grade being 5%, the highest grade being 35%, and the first grade being 5.
Proportional tax rate. Personal income tax is levied on personal income such as interest, dividends, bonus income, property lease income, property transfer income, accidental income and other income, and the proportional tax rate of 20% is applicable.
Reference source; Baidu encyclopedia-personal income tax