Mastering the Individual Income Tax System in China

3 percent to 45 percent

Individuals who reside in the country for more than 183 days

Yes

<p>Both resident taxpayers and non-resident taxpayers</p> Signup and view all the answers

<p>Income derived or sourced from China</p> Signup and view all the answers

<p>Individuals = Directly taxable Corporations = Directly taxable Estates and trusts = Taxable on undistributed income Partnerships = Not taxed but partners are taxed on their shares of partnership income</p> Signup and view all the answers

<p>Wages = Subject to both income and payroll taxes Capital gains = Subject to income taxes Worldwide income = Taxed for residents and citizens Income within the jurisdiction = Taxed for nonresidents</p> Signup and view all the answers

<p>Residents = Taxed on worldwide income Citizens = Taxed on worldwide income Nonresidents = Not taxed on worldwide income</p> Signup and view all the answers

<p>Alternative Minimum Tax (AMT) = Applies at the federal and some state levels Income tax = Levied on wages and capital gains Payroll tax = Levied only on wages Tax credits = Reduce tax and may exceed tax before credits</p> Signup and view all the answers

<p>Taxable income = Total income less allowable deductions Tax rate = May increase as income increases Payroll taxes = Only levied on wages Income taxes = Levied on wages and capital gains</p> Signup and view all the answers