中国个人所得税制度

Now, here is some more information on China's Individual Income Tax, or IIT, system.  According to this progressive system, a tax exemption of 3,500 yuan per month for locals is granted. The tax rate on incomes moves in seven levels from three percent to 45%.

Data from the Ministry of Finance showed China last year grossed over 860 billion yuan from individual income taxes, up nearly 17 percent compared with the previous year. The ministry attributed that increase mostly to people's income growth.

According to local statistics bureaus, last year the average income for employers in Beijing exceeded 7,000 yuan a month. And for people in mega-cities, like Shanghai, that number is approaching 6,000.

However, turning to inland areas like Henan Province, the average monthly income amounts to less than 3800 yuan.