Real income tax threshold hiked to CNY4,545

From 1 September 2011, the taxable amount of Personal Income Tax will become CNY4, 545 which means there will be 60M of Chinese personal tax payer need not pay for PIT from that time. 

China recently raised the personal income tax threshold from 2,000 yuan to 3,500 yuan, which reduced the population paying this tax from 84 million to 24 million. The new income tax threshold of 3,500 yuan ($541) is for a person's income after deductions have been made for social basic insurance premiums and the housing public fund.  The social basic insurance includes the basic pension insurance, basic medical insurance and unemployment insurance.