Annual Tax Return in China
Filing of the individual income tax return for Chinese and foreign individuals, including overseas income.
Ah, the annual tax return. Most employees in China have their income tax deducted each month from their salary by their employer. However, residents that must also file an annual reconciliation tax return on comprehensive income every year before the 30th of June.
The annual tax return in China can be a complicated process to understand for both foreign companies that have employees in China or individuals working in the country. Our local experts can help you to collect and calculate your annual tax return, including overseas income. We will guide to a compliant and stress-free annual tax return process.
What is the annual tax return in China?
The annual tax return is the act of calculating the annual final individual income tax payable for the whole year after combining the income from wages and salaries, remuneration for labor services, author’s remuneration, and royalties obtained in a tax year. From those, you then deduct the tax paid in advance in the tax year, calculate the refundable or supplementary tax payable, report to the tax authorities and make the tax settlement.
Why use HROne for the annual tax return?
How Employer of Record in China works
The annual tax return is calculated every year between April 1st and June 30th, and it involves both Chinese employees and foreigners.
We help your employee with all the processes of collecting the documents requested by the tax bureau, translating the documents collected from outside China, guiding the individual to proceed the process online, and visiting the tax bureau with the individual if the offline claim is required.
Normally, for the employee that obtains only the domestic comprehensive income, we will declare through the government’s website. But there are other cases where we need to collect more information (for example, when the employee has an income overseas).
Our service in detail:
Update and explain new policies. Collection, integration, and calculation of employees’ declaration data. Provide employee name list to the client who needs to process annual settlement and payment of income tax. Provide guidance to calculate and proceed with the final annual settlement and payment of income tax.
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Employment Outsouricing
Hire and pay employees in China without setting up a local company. We manage HR, employment, and payroll for you.
Buste paga e benefit
Outsource payroll and social benefits of your employees in China. Save time, and become compliant with Chinese laws.
Reclutamento
Find and hire the best talents to grow your business in China. We take care of the employment contract if you don’t have a local entity in China.
Domande frequenti
Payroll & mandatory benefits are included in our China Employer of Record and our PEO services.
In molti paesi, PEO ed EOR sono la stessa cosa e possono essere scambiati. Tuttavia in paesi come la Cina e gli Stati Uniti, PEO ed EOR si riferiscono a servizi diversi:
Con Datore di lavoro registrato (EOR), il fornitore di servizi si assume la responsabilità e la responsabilità del datore di lavoro poiché il cliente non ha un'entità legale nel paese di interesse.
Con Organizzazione per l'impiego professionale (PEO), il prestatore di servizi gestisce le assunzioni, l'impiego e le buste paga, ma non si assume la responsabilità o la responsabilità del datore di lavoro poiché il cliente ha una persona giuridica nel paese di interesse.
The 13th month bonus in China refers to a bonus equal to one month’s salary that is usually paid at the onset of Chinese New Year.
This 13th month bonus is not mandatory unless explicitly stated in the labor contract upon signing. A 13th month bonus depends on the company’s performance as well as the employee’s performance.
It is possible for employees to receive an even higher bonus (14th or even 15th month bonus) depending on these factors.
Employees in China are entitled to annual leave days based on their work experience.
After working for their employer for 1 year. Employees who have worked less than 10 years are entitled to 5 days paid annual leave.
Employees who have between 10 and 20 years of experience are entitled to 10 days paid annual leave.
Employees with over 20 years of experience are entitled to 15 days of paid annal leave.
L'utilizzo di un servizio Employer of Record/PEO è spesso considerato l'approccio moderno all'espansione in Cina. Finché non hai bisogno di fatturare in Cina, questa è una soluzione perfetta per le PMI straniere che vogliono iniziare la loro attività qui. Con un datore di lavoro registrato, puoi assumere e gestire legalmente il tuo team in Cina, evitando il tempo e il denaro necessari per costituire una società .
HROne, l'Employer of Record, è legalmente responsabile del tuo personale durante il periodo di lavoro in Cina.
Possiamo assumere un dipendente cinese locale in appena un giorno!
I membri del tuo staff possono essere impiegati e trovarsi ovunque in Cina. Il loro stato di occupazione sarà registrato dall'ufficio locale in base alla loro posizione.
Non necessariamente. I membri del personale possono lavorare in remoto da casa o da un'altra posizione. Tuttavia, offriamo l'affitto di spazi per uffici su richiesta.
Sì, la nostra soluzione Employer of Record può essere utilizzata per assumere sia personale locale che straniero.
Individual income taxes In China are based on a progressive tax brackets rate:
| Bracket | Annual Taxable Income (RMB) | Tax Rate (%) | Quick Deduction |
| 1 | No more than 36,000 | 3 | 0 |
| 2 | Between 36,000 and 144,000 | 10 | 2,520 |
| 3 | Between 144,000 and 300,000 | 20 | 16,920 |
| 4 | Between 300,000 and 420,000 | 25 | 31,920 |
| 5 | Between 420,000 and 660,000 | 30 | 52,920 |
| 6 | Between 660,000 and 960,000 | 35 | 85,920 |
| 7 | More than 960,000 | 45 | 181,920 |
Social benefits in China are divided into two categories:
- Five mandatory social insurances – These include pension insurance, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance.
- Housing fund – The purpose of this is to allow employees to save money to buy a house in China.
