(b) Ms Gu is a China tax resident. In October 2014, she earned a salary from Employer A of RMB9,500 and another salary from Employer B of RMB11,000. Neither of Ms Gu’s two employers knew that Ms Gu had dual employments and they withheld individual income tax (IIT) based on the law on the salaries they paid to her respectively.
Required:
Calculate the additional individual income tax (IIT) which Ms Gu needs to pay for the month of October 2014.
Ms Gu – Additional individual income tax (IIT) payable for October 2014
IIT withheld by Employer A = [((9,500 – 3,500) x 20%) – 555] = RMB645
IIT withheld by Employer B = [((11,000 – 3,500) x 20%) – 555] = RMB945
Total IIT payable = [((9,500 + 11,000 – 3,500) x 25%) – 1,005] = RMB3,245
Additional IIT payable by Ms Gu = (3,245 – 645 – 945) = RMB1,655