China’s real income tax threshold will be 4,545 yuan after the personal income tax law amendment, People’s Daily reported on Tuesday, citing Liu Zuo, head of the research center at the State Administration of Taxation.
China recently raised the personal income tax threshold from 2,000 yuan to 3,500 yuan, which reduced the population paying this tax from 84 million to 24 million.
The new income tax threshold of 3,500 yuan ($541) is for a person’s income after deductions have been made for social basic insurance premiums and the housing public fund,.
The social basic insurance includes the basic pension insurance, basic medical insurance and unemployment insurance.
Source: China Daily