Author: 468259058

You need to pay Taxes: 5,900 ~ 10,500 a month if your Salary is 10,000 [Copy link] 中文

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Post time 2011-3-31 23:43:06 |Display all floors
Originally posted by Wahahaha at 2011-3-31 23:23
Just show me your calculations for the "extreme case" of paying 10,500 "taxes and fees" per month based on a salary of 10,000.
.
Employee need to pay 8%*10,000 + 2%*10,000 +3 + 0.2%*10,000 + 12%*10,000 = 2,223 for type of fee (individual income tax)
Employee need to pay 780.4 for income taxes. (individual income tax)
If the employee consume with this 70,000 yuan, he need to pay 350~3,918 yuan for type of taxes. (the highest taxes is cigarrets 56%.) (turnover tax occured in consumption)
Company need to pay 20%*10,000 + 10%*10,000 + 1.5%*10,000 + 12%*10,000 = 4,350 for type of fee (individual income tax)

2,223 + 780.4 + 350~3,918 + 4,350 = 7,703.4 ~ 11,271.4


Source and links too, please..
.
news.ifeng.com/mainland/detail_2011_03/25/5354640_0.shtml
baike.baidu.com/view/34269.htm

[ Last edited by 468259058 at 2011-4-1 07:41 AM ]

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Post time 2011-3-31 23:51:22 |Display all floors
hahahaaha..

it's only an estimation.

I didn't count another 2  Fee weighing lower than 2% .

12% Is not compulsory one but recommendation in national laws but comulsory one in Beijing local laws..

7,703.4 ~ 11,271.4 - 1200 = 6503.4 ~ 10071.4
+++++++++++++++++++

hahaaahaaa.a..a..Please double check our calculation.

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Post time 2011-3-31 23:58:46 |Display all floors
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Post time 2011-4-1 00:31:15 |Display all floors
Originally posted by Wahahaha at 2011-3-31 23:58
Why are you adding the Company's tax liability to the employee's personal tax liability?  Are they one and the same entity?
And why should cigarette duties / sales tax etc. be relev ...

Why are you adding the Company's tax liability to the employee's personal tax liability?  

It is one part of income tax. and it  is also calculated based on the income of each employee. this part was going into the government-owned sub account.
Another part of income taxes are going into the individual sub account.

Both government-owned sub account and individual sub account are actually under one big account for part of social welfare spending, such as retirement pension, health care pension....
+++++++++++++
And why should cigarette duties / sales tax etc. be relevant?

China's total individual taxes = turnover tax + income tax

turnover tax = value added tax (VAT) + product taxes + business taxes

income tax = income fee + income tax
income fee = individual income fee paid by individual + individual income fee paid by company

turnover tax is collected through individual consumption.
income tax is directly collected through company account.

When you buy cigarette, you would pay turnover tax, which different from income tax.

cigarette duties/sales tax is part of turnover tax.

[ Last edited by 468259058 at 2011-4-1 12:40 AM ]

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Post time 2011-4-1 00:40:00 |Display all floors
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Post time 2011-4-1 00:43:33 |Display all floors
Originally posted by Wahahaha at 2011-4-1 00:40
All I can say is, I am glad you are not my accountant.  Your are totally messed up when it comes to taxes!
.

hahahahaa...

I am learning the tax system of China now. Of course I am not an accountant.

But where is the mess? Which mistake? Please piont out.

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Post time 2011-4-1 08:15:09 |Display all floors
# 22


Well you're mixing income tax with consumption tax, with corporate tax etc....

Needless to say that these are different taxes and what a person consumes (little or much) is decided by himself/herself and has nothing to do with income tax. Corporate tax has also nothing to do with income tax. Example:

If I own a small company where I'm also on the list of employees I may have a salary of -say - 10k which is taxed with 2k income tax. I cannot add corp. tax to the income tax as long as I do not withdraw the company's profits into my own pockets. Capito?

If I smoke like a chimney and pay for a lot for cigarettes this again is my private decision. Taxing cigartettes with more than 50% is good, no, very good but again, this is either consumption -  or tobacco tax. This goes on and on.

Btw, all these kind of taxes are common in civilized societies the world over.

Last but not least, it's useful for you to gain experience of taxable income in the country of origin rather than judging from abroad.

Since it's the 1st of April I wish you a nice 'April fools day'.

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