Remunerated (REM) Employee Tax Calculation

This diagram illustrates the flow of remunerated (REM) tax calculation (for interns, consultants, instructors, contractors, and other employees who are paid for services rendered):

This diagram illustrates the flow of REM tax calculation.

Intern tax calculation

The REM TAX deduction invokes formula CN FM CALC REM TX, which calculates normal salary to derive REM tax. It then calls CN FM REM TAX, which inserts the REM tax calculation values into the CN WA TAX REPORT writable array for tax reporting purposes.

The formula CN FM CALC REM TX:

  1. Calculates taxable income (CN VR TAX INCOME).

    1. If TAXABLE REM MTD is less than or equal to 4,000 CNY, then CN VR TAX INCOME = TAXABLE NORMAL MTD – CN VR EXMPT AMT.

    2. If TAXABLE REM MTD is greater than 4,000 CNY, then CN VR TAX INCOME = TAXABLE NORMAL MTD – (TAXABLE NORMAL MTD * CN VR EXMPT PCT).

  2. Calls CN FM DONATION to subtract the tax-exempt portion of donation from step 1 if any donations exist.

    1. If the total donation is greater than 30% of the taxable income from step 1, the 30% of taxable income becomes the tax-exemption portion and the system deducts it from the amount derived in step 1 to obtain the final taxable income, CN VR TAX INCOME.

    2. If the total donation is less than 30% of the taxable income from step 1, the entire donation is tax exempted and the system deducts it from the amount derived in step 1 to get the final taxable income, CN VR TAX INCOME.

  3. References the tax table CN BR TAX RT REM to obtain the tax rate and quick calculation deduction to derive the withholding amount for the payee's remunerated salary for one pay period in the current financial year.

  4. Calls the formula CN FM TX REDUCTION if the employee is disabled.

  5. Deducts any REM tax already paid.