Calculation of individual income tax on wages and salaries earned by foreigners;

Income from wages and salaries refers to wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other employment-related income.

Income from wages and salaries: taxable income is the balance of monthly income after deducting expenses deduction standard. Namely: taxable income = monthly income-expense deduction standard.

Expense deduction standard: According to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations, the monthly expense deduction standard of individual income tax and wage income is 1600 yuan, and foreigners can enjoy an additional deduction of 3,200 yuan, so the deduction standard of foreign personal expenses is 4,800 yuan/month.

Income from wages and salaries is subject to a nine-level progressive tax rate of 5% to 45%. Details are as follows:

Taxable amount = taxable income/applicable tax rate-quick deduction

Tax exemption: The wages and salaries of journalists of foreign news agencies in China shall be levied in accordance with the provisions of the Foreign Individual Income Tax Law. If it asks for tax exemption, it must be based on the principle of reciprocity, that is, if the other country clearly stipulates that the personal income tax of our news agency reporters is exempted, we will also exempt their news agency reporters from personal income tax in China. But it must be resolved through diplomatic channels. (Reply of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Several Issues Concerning the Collection of Individual Income Tax, [80] No.48)

Provisions on the exemption of foreign individuals from subsidies and allowances:

Housing, food subsidies and laundry expenses: reasonable housing subsidies, food subsidies and laundry expenses obtained by foreign individuals in the form of non-cash or reimbursement are exempt from personal income tax. Taxpayers should provide the valid vouchers of the above subsidies to the competent tax authorities in the month following the first acquisition of the above subsidies or changes in the amount and payment method of the above subsidies, and the competent tax authorities will approve and confirm the tax exemption.

Resettlement fee: Personal income tax is exempted for the resettlement income obtained by foreign individuals in the form of reimbursement for employment or resignation in China. Taxpayers shall provide valid vouchers, and the reasonable part shall be exempted from tax after being examined and confirmed by China tax authorities.

Travel allowance: The domestic and overseas travel allowance obtained by foreign individuals according to reasonable standards is exempt from personal income tax. Taxpayers should provide travel and accommodation vouchers (photocopies) or relevant plans for enterprises to arrange business trips, and the competent tax authorities should confirm tax exemption.

Visiting expenses: The visiting expenses obtained by foreign individuals are exempt from personal income tax. Taxpayers should provide transportation vouchers (photocopies) for visiting relatives, and only a reasonable part can be exempted from tax after being examined and confirmed by the competent tax authorities. In addition, you can also enjoy the preferential treatment of exemption from personal income tax, which is limited to the expenses for foreign individuals to travel between their places of employment and their families (including their spouses or parents' places of residence) by means of transportation and not more than twice a year.

Subsidies for language training fees and children's education fees: Foreign individuals are exempt from personal income tax for language training fees and children's education fees. The expenditure vouchers and time limit certification materials provided by taxpayers for receiving the above-mentioned education in China shall be exempted from tax after examination by the competent tax authorities.

Provisions on the exemption of individual income tax from interest, dividends and bonus income obtained by foreign individuals:

Dividends and bonus income obtained by foreign individuals from foreign-invested enterprises may be exempted from personal income tax. (Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Several Policy Issues concerning Individual Income Tax (Caishuizi [1994] No.0202); Foreign individuals who hold B-shares or overseas shares (including H-shares) are temporarily exempt from personal income tax on dividends (bonuses) obtained from enterprises in China that issue B-shares or overseas shares. (Letter of State Taxation Administration of The People's Republic of China on Tax Issues Concerning Dividends Obtained by Overseas Individuals Holding Shares in Domestic Listed Companies (Guo Shui Han Fa [1994] No.440).

Personal income tax return:

Foreigners declare at the collection window of the collection hall of the foreign-related branch of the local taxation bureau on June 1-7 every month, and declare the personal income tax of the previous month. If the last day is a statutory holiday, the last day of the period shall be the day after the holiday expires; If there are legal holidays for more than 3 consecutive days within the time limit, it shall be postponed according to the number of holiday days. The tax authorities shall complete the examination and approval of the submitted materials within fifteen working days.