The only thing that seems to be new is this Insurance policy scheme as reported today..see link

Well, there are DIFFERENT types of TAXES for Foreigners and also apply to Chinese.  Some are on sources of Income, some are on Social Security type benefits like retirement, health insurance, work related injuries, etc.

Both have been updated in 2011, and in general, they apply to foreingers who have derived and income from working in China, and that includes all sources of income from abroad to.  You must reside in China 183 days of each taxable year to be subject to tax payment (always will be subject to withholding while working), and the first 4,800 yuan will be tax free.

For an overall view of tax brackets that apply to different sources of income, I complilet from Internet this brief chart :

Income Tax Rates in China

p>The tax on an individual's income is progressive. As at 2011, an individual's income is taxed progressively at 5% - 45%.

The 2011 corporate tax rate for domestic and foreign companies is 25%.

Small companies pay 20% corporate tax in certain cases.

Capital Gains

An individual's capital gains are taxable in China at the rate of 20%.

Capital gains tax for a Chinese company is added to the regular tax.

A 10% deduction at source is made from the capital gains of a foreign company in China.

On taxing capital gains from the sale of real estate, when calculating the capital gain the purchase cost is deducted from the sale price at the 20% rate. When the capital gains are in excess of 50% of the purchase price, the rate of capital gains tax fluctuates between 30% - 60%. (It is 60% when the capital gain is over 200% when compared to the cost).

Table of Income Tax Rates in China for an Individual in 2011

Tax %

Monthly Income (CNY)

5%

1 - 500

10%

501 - 2,000

15%

2,001 - 5,000

20%

5,001 - 20,000

25%

20,001 - 40,000

30%

40,001 - 60,000

35%

60,001 - 80,000

40%

80,001 - 100,000

45%

100,001 and above

The table relates to income from a salary. Income from other business is taxable at 5% - 35%. Passive income such as interest and royalties is taxable at a standard rate of 20%.

Overseas Income

An individual and company who are Chinese residents are also taxed on their income outside China and receive a credit for overseas taxes.

Qualification for residence for an individual:
Permanent residence in China while an individual who has no permanent residence in China but has lived in China for less than 5 years is taxed on his income in China, or overseas income that has its origins in China.

Individuals staying in China more than five tax years are taxed on their worldwide income too.

Reporting Dates and Payment

The tax year in China ends on December 31. It is compulsory to file a report and pay advances monthly or quarterly (monthly for individuals).

The date for submitting an annual report and arranging payments is up until May 31. There are fines on arrears. Foreign companies in China are obligated to submit an interim report every three months (advance payments should be paid within 15 days of the end of the quarter).

An individual whose entire income in China is from a salary or whose income is subject to a deduction of tax at source is exempt from submitting an annual report.

An employer is obligated to submit a monthly report on his employees' wages and to pay the tax deducted within 7 days of the end of the previous month.

DEDUCTION OF TAX AT SOURCE

Taxation of Employees

An employer is obligated to deduct tax at source on a monthly basis from a salaried employee and to make additional contributions to social security.

Social security in China consists of 3 parts, basic pension, personal accounts and additional payment.

The rates for the basic pension are,employer - around 20%, employee - 7%.

Other deductions
The following payments are subject to a deduction of tax at source:

Dividend - 10%.

Interest - 10%, (plus 5% business tax)

Royalties -10%, (plus 5% business tax)

Capital gains -10%