China raises individual income tax threshold to RMB 3,500
On June 30, the 21st Session of the Standing Committee of the 11th National People’s Congress passed by majority vote the decision on amending the Individual Income Tax Law. According to the decision, the taxable part of wages and salary income shall be the balance of monthly income after deducting RMB3,500; wages and salary income shall apply the excess progressive of tax rate ranging between 3% and 45%. It is reported that the revised law will take effect as of September 1.
Progressive tax rate on individual income tax:
| Level | Monthly taxable wages and salary income (RMB) | Rate (%) |
| 1 | Not over RMB 1,500 | 3% |
| 2 | Over RMB 1,501 to RMB 4,500 | 10% |
| 3 | Over RMB 4,501 to RMB 9,000 | 20% |
| 4 | Over RMB 9,001 to RMB 35,000 | 25% |
| 5 | Over RMB 35,001 to RMB 55,000 | 30% |
| 6 | Over RMB 55,001 to RMB 80,000 | 35% |
| 7 | Over RMB 80,001 | 45% |
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