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How should individuals engaged in business on the mainland calculate their personal income tax liability?

According to the Individual Income Tax Law of the People’s Republic of China (which came into force on 1 January this year), all income earned by mainland-resident individuals from business operations should be taxed on the basis of total income earned in each tax year after any legally-mandated costs, fees or losses have been deducted.

The currently-applicable tax rates are as follows:

Individual Income Tax Rates (Applicable to Income from Business Operations)

Grade Annual Taxable Income (RMB) Tax Rate
130,000 or less5%
2Amount in excess of 30,000 to a maximum of 90,00010%
3Amount in excess of 90,000 to a maximum of 300,00020%
4Amount in excess of 300,000 to a maximum of 500,00030%
5Amount in excess of 500,00030%


For further details, please access the following link:

Revised Individual Income Tax Law to Come into Force in January 2019

Content provided by Picture: HKTDC Research
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