1.Purpose
The purpose of this guidance is to standardize UIC’s processes regarding the purchases of labor service, payments and Individual Income Tax (IIT) withholding & remitting of labor remuneration.
2. Scope
This guidance applies to all on and off-campus individual who will enter into working arrangements with UIC by rendering professional services or providing contracts of labor service, where on-campus individual applies to both student and staff.
3. Definition
Labor remuneration is a form of payment made to individual who usually works independently in independent design, mapping, scientific examining and testing, consulting, lecturing, training, TV & video filming, translating, performing, technical supporting, deputizing and so on activities in exchange of professional services rendered.
4. Differences between “Labor Remuneration” and “Salary & Wage”
One key element to determine whether a payment made to an individual is “Labor Remuneration” or “Salary & Wage” is the existence of employment relationship. “Labor Remuneration” is a form of payment made to individual performing work or services independently out of business relationship only and there is no existence of employment relationship; whereas “Salary & Wage” is a form of payment made to individual performing work or services out of employer-employee relationship, which includes all considerations and benefits that have a monetary value such as salary, wage, bonus, subsidy, allowance, etc. Detail differences as follows:
1) UIC staff receives remuneration (salary, bonus, allowance, subsidy, etc.) in exchange of work; individual income tax shall be calculated based on the sum of “Salary & Wage” received.
2) Payment received by on-campus student as a result of participating in the Student
Part-Time Work Program (including participating in the Student Part-Time Work Program organized by UIC) and consulting fee made by UIC to off-campus professional are “Labor Remunerations”.
5．Labor Remuneration- Tax Calculations
Taxpayer Type |
Tax Basis Calculation |
Formula |
Resident Taxpayer |
1)For one-time labor remuneration below RMB 4,000, RMB 800 will be deducted for calculating taxable income |
Withholding Tax = Tax Payable Income * Tax Rate - Quick Deduction
（Apply to the Individual Income Tax Rate Table I） |
2)For one-time labor remuneration above RMB 4,000 but under 20,000, 20% of the remuneration will be deducted for calculating taxable income |
Non-Resident Taxpayer |
The taxable income amount shall be the balance of income after deducting 20% of expenses |
Tax payable = Taxable Income * Tax rate - Quick Deduction
（Apply to the Individual Income Tax Rate Table II） |
Individual Income Tax Rate Table I
(Apply to the Individual income tax withheld for Residents' Labor remuneration)
Level |
One-Time Labor Remuneration (A) |
Eligible Deduction |
Tax Rate |
Quick Deduction |
1 |
Below RMB 4,000 |
800 |
20% |
0 |
2 |
Above RMB 4,000 under 20,000 |
A*20% |
20% |
0 |
3 |
Above RMB 20,000 under 50,000 |
A*20% |
30% |
2000 |
4 |
Above RMB 50,000 |
A*20% |
40% |
7000 |
Withholding Tax = Tax Payable Income * Tax Rate - Quick Deduction
Individual Income Tax Rate Table II
(Apply to the Individual income tax withheld for No-Residents' Labor remuneration)
Level |
Taxable Income for Labor Remuneration(B) |
Tax Rate |
Quick Deduction |
1 |
Below RMB 3000 |
3% |
0 |
2 |
Above RMB 3000 and RMB 12000 |
10% |
210 |
3 |
Above RMB 12000 under RMB 25000 |
20% |
1410 |
4 |
Above RMB 25000 under RMB 35000 |
25% |
2660 |
5 |
Above RMB 35000 under RMB 55000 |
30% |
4410 |
6 |
Above RMB 55000 under RMB 80000 |
35% |
7160 |
7 |
Above RMB 80000 |
45% |
15160 |
Tax payable = Taxable Income * Tax rate - Quick Deduction
6. Labor Remuneration-Tax Remittance
According to tax laws, IIT defines one who receives remuneration as the taxpayer and one who pays out remuneration as the withholding agent. Whether or not a taxpayer holds an employment relationship with the withholding agent, as long as the taxpayer is providing a service for return of any monetary form, the withholding agent is responsible for deducting, withholding, remitting IIT.
7. Application for Payment of Labor Remuneration
7.1 Proof of labor service (service contract, invitation letter, etc.)
7.2 Valid identify certificate of claimant (2 photocopies):
Staff from Mainland China - please provide identity card;
Staff from Hong Kong, Macao and Taiwan - please provide either permanent identify
card or Mainland Travel Permit for Hong Kong /Macao/ Taiwan Residents;
Staff from foreign countries – please provide passport
7.3 Proof of payment for labor remuneration (with amount of IIT withheld stated)
7.4 Completed Application forms such as the Personal Claim Form
