individual income tax

I have a new job offer from a multinational which is giving lump sum package as salary. I have been told that as per chinese law entire salary will be taxable.

what are the ways i can reduce my taxable income like whether the education fees of kids, rent, conveyance etc whether these can be deducted from the monthly salary to calculate the tax

pls help me...accordingly, i will have to decide whether to join them

hi, in fact, how to deduct the individual income tax is a complicated question. generally, if your income is more than 4 thousand Yuan, the excess is taxable.if you want to deduct the tax, you need the employee's coorporation, The following income obtained by foreign individuals shall be exempt from individual income tax temporarily:

a. the housing ,meal, housing transfer and cloth washing allowance are exempt, provided they are not paid by cash and the amount is in proof of invoice;

b. the allowance of trip at home and abroad are exempt, provided they are paid in rational standards;

c. the home leave fare, educational expense for children, language training expense are exempt, provided both the amount of fare and the frequency each year are considered reasonable by the tax authority;

d. incomes obtained by foreign individuals from dividends and extra dividends derived from foreign-invested enterprise are exempt.

[UPDATE] Please note that fee quotes stated in historic postings may be out-of-date.


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