China

China uses a progressive individual income tax (IIT) system with seven brackets, ranging from 3% on monthly taxable income up to RMB 3,000 to 45% on income above RMB 80,000. A basic monthly deduction of RMB 5,000 (RMB 60,000 annually) applies. Additional specific deductions include children's education, continuing education, medical expenses, housing loan interest, and elderly care. Social insurance contributions vary by city but generally include pension (8% employee / 16% employer), medical insurance (2% / 8%), unemployment (0.5% / 0.5%), housing fund (5-12% each), and work injury and maternity (employer only). Total employee contributions are approximately 15-23% of salary, and employer contributions are 30-40%. Foreign workers in China are subject to IIT on their China-sourced income if resident for fewer than 183 days, or on worldwide income if resident for six consecutive years. Tax treaties can modify these rules. The housing fund contribution, while mandatory, can be withdrawn for home purchase or upon leaving China. Capital gains on securities are generally exempt for individuals on domestic exchanges. VAT ranges from 6% to 13% depending on the category. The corporate tax rate is 25%, with a preferential 15% rate for qualified high-tech enterprises.