Prepare, review, or classify transactions for China Personal Income Tax (个人所得税 / IIT), annual comprehensive income settlement (汇算清缴), or advise on Chinese tax brackets and special deductions.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Comprehensive income tax formula
Tax = Taxable income × Rate − Quick deduction
Standard deduction
¥60,000/year (¥5,000/month) — everyone gets this
Pre-tax deduction rule
All deducted pre-tax from salary.
Computation method steps
Step 1: Total annual income (全年收入额) - Salary: actual amount - Labor remuneration: income × 80% - Author's remuneration: income × 80% × 70% - Royalties: income × 80% Step 2: − Standard deduction (¥60,000) Step 3: − Social insurance (专项扣除) Step 4: − Special additional deductions (专项附加扣除) Step 5: − Other deductions (commercial health insurance max ¥2,400, pension max ¥12,000) Step 6: − Charitable donations (max 30% of taxable income) Step 7: = Annual taxable income (全年应纳税所得额) Step 8: Apply bracket rate − quick deduction (Section 2) Step 9: = Annual tax liability Step 10: − Tax already withheld during year (已预缴税额) Step 11: = Tax payable or refund (补税/退税)
Cumulative withholding method
Employers withhold monthly using cumulative method: - Each month: cumulative income to date, minus cumulative deductions, apply bracket, minus prior months' tax already withheld
Who must file criteria
- Annual income > ¥120,000 (even if fully withheld) - Income from 2+ sources - Foreign income - No withholding agent
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick reference table
| Field | Value |
|---|---|
| Country | 中华人民共和国 (People's Republic of China) |
| Tax | 个人所得税 (Individual Income Tax / IIT) |
| Currency | CNY (人民币 / RMB / ¥) |
| Tax year | Calendar year (1 Jan – 31 Dec) |
| Current tax year | 2025 |
| Tax authority | 国家税务总局 (State Taxation Administration / STA) |
| Filing app | 个人所得税 APP (IIT APP) |
| Filing portal | https://etax.chinatax.gov.cn |
| Annual settlement (汇算清缴) | 1 March – 30 June of following year |
| Standard deduction | ¥60,000/year (¥5,000/month) |
| Source credit | cn/individual-income-tax-law (PRC IIT Law full text) |
| Contributor | Open Accountants Community |
| Validated by | Pending — requires sign-off by a Chinese CPA (注册会计师) or tax advisor |
| Skill version | 1.0 |
Applies to: wages/salary (工资薪金), labor remuneration (劳务报酬), author's remuneration (稿酬), and royalties (特许权使用费).
Comprehensive income brackets table
| Annual taxable income (¥) | Rate | Quick deduction (速算扣除数) |
|---|---|---|
| 0 – 36,000 | 3% | 0 |
| 36,001 – 144,000 | 10% | 2,520 |
| 144,001 – 300,000 | 20% | 16,920 |
| 300,001 – 420,000 | 25% | 31,920 |
| 420,001 – 660,000 | 30% | 52,920 |
| 660,001 – 960,000 | 35% | 85,920 |
| Over 960,000 | 45% | 181,920 |
Applies to: self-employed (个体工商户), sole proprietorships, partnerships.
Business income brackets table
| Annual taxable income (¥) | Rate | Quick deduction |
|---|---|---|
| 0 – 30,000 | 5% | 0 |
| 30,001 – 90,000 | 10% | 1,500 |
| 90,001 – 300,000 | 20% | 10,500 |
| 300,001 – 500,000 | 30% | 40,500 |
| Over 500,000 | 35% | 65,500 |
Other income flat rate table
| Income type | Rate | Notes |
|---|---|---|
| Interest, dividends (利息、股息、红利) | 20% | Withheld at source |
| Property rental (财产租赁) | 20% | After ¥800 or 20% expense deduction |
| Property transfer (财产转让) | 20% | On gain (proceeds − cost − expenses) |
| Incidental income (偶然所得) | 20% | Lottery winnings, etc. |
Mandatory social insurance table
| Item | Employee rate | Notes |
|---|---|---|
| Pension (养老保险) | 8% | Of salary base |
| Medical (医疗保险) | 2% | Of salary base |
| Unemployment (失业保险) | 0.5% | Of salary base |
| Housing fund (住房公积金) | 5–12% | Of salary base (employer matches) |
Special additional deductions table
| Deduction | Monthly amount (¥) | Conditions |
|---|---|---|
| Children's education (子女教育) | 2,000/child | Ages 3–PhD; split 50/50 or one parent claims all |
| Continuing education (继续教育) | 400 | Degree programs; or ¥3,600/year for professional certificates |
| Serious illness medical (大病医疗) | — | Annual out-of-pocket over ¥15,000; max ¥80,000 deduction |
| Housing loan interest (住房贷款利息) | 1,000 | First home; max 240 months |
| Housing rent (住房租金) | 800–1,500 | Depends on city tier (no owned property) |
| Elderly care (赡养老人) | 3,000 | Parent 60+; only child gets full amount |
| Infant care (3岁以下婴幼儿照护) | 2,000/child | Under age 3 |
Scenario: Employee in Beijing, annual salary ¥360,000, one child in school, housing loan (first home), caring for elderly parent (only child). Social insurance + housing fund deducted at source ≈ ¥4,500/month.
Worked example table
| Step | Description | Amount (¥) |
|---|---|---|
| Annual salary | 360,000 | |
| − Standard deduction | ¥5,000 × 12 | (60,000) |
| − Social insurance | ¥4,500 × 12 | (54,000) |
| − Children's education | ¥2,000 × 12 | (24,000) |
| − Housing loan interest | ¥1,000 × 12 | (12,000) |
| − Elderly care | ¥3,000 × 12 | (36,000) |
| Taxable income | 174,000 |
Tax on ¥174,000:
If monthly withholding totaled ¥18,500 during the year → refund of ¥620.
Annual settlement deadlines table
| Who must settle | Deadline |
|---|---|
| Annual tax > withholding (补税 > ¥400) | By 30 June |
| Annual tax < withholding (退税) | By 30 June (to claim refund) |
| Single employer, withholding correct | No settlement needed |
Nine categories of taxable income table
| # | Chinese | English | Tax treatment |
|---|---|---|---|
| 1 | 工资、薪金所得 | Wages, salary | Comprehensive (cumulative withholding) |
| 2 | 劳务报酬所得 | Labor remuneration | Comprehensive (20%/30%/40% withholding, settled annually) |
| 3 | 稿酬所得 | Author's remuneration | Comprehensive (×70% preferential) |
| 4 | 特许权使用费所得 | Royalties | Comprehensive |
| 5 | 经营所得 | Business income | Separate (5%–35% brackets) |
| 6 | 利息、股息、红利所得 | Interest, dividends | 20% flat (final) |
| 7 | 财产租赁所得 | Property rental | 20% flat |
| 8 | 财产转让所得 | Property transfer | 20% flat on gain |
| 9 | 偶然所得 | Incidental income | 20% flat |
Conservative defaults table
| Situation | Conservative position |
|---|---|
| Income category ambiguous | Classify as highest-rate category; flag |
| Special deduction eligibility unclear | Do NOT claim; flag for reviewer |
| Foreign income | Include if tax resident (183+ days); flag treaty |
| Stock options / RSU | Classify as wages on exercise; flag |
| Crypto gains | No explicit guidance; classify as property transfer 20%; flag |
Sources table
| Source | URL |
|---|---|
| State Taxation Administration (国家税务总局) | https://www.chinatax.gov.cn |
| IIT APP | 个人所得税 (iOS/Android) |
cn/individual-income-tax-law | https://github.com/cn/individual-income-tax-law |
| PRC Individual Income Tax Law (2018 amendment) | 中华人民共和国个人所得税法 (第七次修正) |
OpenAccountants — open-source accounting skills for AI This is not tax advice. All outputs must be reviewed by a qualified professional before filing.
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- Who must file criteria — - Annual income ¥120,000 (even if fully withheld) - Income from 2+ sources - Foreign income - No withholding agent
Other China computations in the OpenAccountants Tax Library.
Our team does bookkeeping, payroll, VAT and tax returns for businesses in China. Start with a free 30-minute call.
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