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Individual income tax finalization for foreigners in China. By Eunice Ku. Jan. 14 â Individual income tax (IIT) is normally withheld from wages or salaries by employers and paid to the tax authorities on a monthly basis (within 15 days of the end of each month).
Chinaâs individual income tax is based on a classification system where different types of income are subject to different graduated tax rates. The highest marginal tax rates are 45% for income from wages and salaries, 35% for non-corporate business income, and 40% for income from investment, property renting and remunerations for services.