Updated March the 15th 2013
Current Salary Scheme
Your salary varies according to the position you fill, your academic credentials and the program based on which you've been hired at WHU. For Special Programs the salary scheme is:
One Thousand Foreign Experts Project
1,000,000 to 1,200,000 Yuan/year (158,500 to 190,300 U.S. dollars) to which you should add other financial incentives. For more information, visit the related page. National High-end Foreign Experts Recruitment Project
100,000 to 120,000 Yuan/year (15,800 to 19,000 U.S. dollars) plus other financial incentives. For more information, visit the related page. Thousand Talents Scheme
600,000-800,000 Yuan/year (96,500 to 130.000 US dollars) plus other financial incentives. Thousand Youths Scheme
200,000-300,000 Yuan/year (32,200 to 48,300 US dollars) plus other financial incentives. Yangtze River Scholars’ Program
300,000-500,000 Yuan/year (48,300 to 80,500 US dollars) plus other financial incentives. Hubei Province Hundred Talents Scheme
300,000-500,000 Yuan/year (48,300 to 80,500 US dollars) plus other financial incentives. Go to TopAnnual Tax
Understanding Your Individual Income Tax
The income tax is deducted from your salary, according to Chinese fiscal regulations. This tax is calculated by WHU and deducted from your brutto salary. Your netto salary is sent into your bank account monthly or as determined through your employment contract. To understand more about salary taxation in China, please read on.
China's taxation system is progressive. The more you earn, the higher the annual tax you have to pay.
Local employees are taxed on the basis of the balance of their monthly income after deducting their social benefits contribution, a standard deduction of RMB 3,500 and then applying the progressive tax rate as shown in the table on the right. The employer is obliged to withhold the full tax amount and submit the taxes to the appropriate Chinese authorities on behalf of its employees. Taxable Income = Gross Salary – Social Benefits – ¥3,500 IIT = Taxable Income x Tax Rate – Quick Deduction Net Salary = Gross Salary – Social Benefits – IIT
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Taxable Income Tax Rate Quick Deduction Less than 1,500 3% 0 1,501 - 4,500 10% 105 4,501 - 9,000 20% 555 9,001 - 35,000 25% 1,005 35,001 - 55,000 30% 2,755 55,001 - 80,000 35% 5,505 Over 80,000 45% 13,505 Foreign employees
The incomes of foreign employees in China are taxed by the same progressive tax rates as the incomes of Chinese employees. However the important question is, when foreign nationals’ incomes are subject to Chinese individual income tax liabilities.
Tax Liability
The criterion used to determine a foreign employee tax liability in China is the duration of stay. Another distinction has to be made between junior staff and senior executives. Foreigners and Chinese from Hong Kong, Macao and Taiwan have to pay IIT on incomes derived from Chinese sources for work in China if they have lived in the country for less than 90 days (183 days for citizens of countries that have signed a treaty on the avoidance of double taxation with China [1]). If a foreign employee has been living in China for more than 90 days (183 days) but less than a year, income for work in China from all sources is taxable. Foreign senior executives (e.g. Managers, Deans, etc.) however, are liable for their full income derived from Chinese sources from the first day in the country. For better understanding taxable income for longer periods of stay and for senior officials compared to ordinary employees please see the chart below.
Tax Chart for Foreign Employees
[1] These include among others: the EU-25 (except Greece), Australia, Brazil, Canada, Hong Kong, India, Indonesia, Japan, Macao, Malaysia, New Zealand, Norway, Russia, Singapore, South Africa, South Korea, Switzerland, Thailand, USA, Vietnam
After knowing which incomes are subject to Chinese IIT, the calculation process is only slightly different from the one described for Chinese nationals. The same tax rates and tax brackets also apply to the incomes for expatriates working in China or for Chinese companies. Foreign employees may, however, deduct an amount of 4,800 RMB before calculating the tax payable according to the scheme above. Moreover, some allowances paid by the employer are not taxable [2].
Go to Top[2] This includes allowances for home leave (only applicable twice a year), language training, children’s education, housing rental, moving, food, washing of clothes and business trip expenses.
Source JLJ GROUPHow to Obtain Employment Verification Needed for Loans or Other Legal Purposes
Most financial institutions will require a copy of your employment contract, your passport or ID document and your Foreign Expert booklet. You receive a Foreign Expert booklet when you start working for us. If you need any special certifications regarding your employment, address the matter with the human resources coordinator within your own School or Faculty. For any concern or clarification regarding your salary and income tax, please contact the Finance Office (Address: Economics and Management School, Wuhan University Luojiashan, Wuhan, China, 430072)
For any concern or clariffication regarding your salary and income tax, please contact the Financial Office (Address: Economics and Management School, Wuhan University Luojiashan, Wuhan, China, 430072)
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