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Post by MK on Jul 23, 2005 10:57:49 GMT 7
So, according to the bumpf I got from my new school, there is a China-UK tax treaty which means UK peeps coming to China as teachers don't have to pay any tax for the first three years. Sweet. However, at my first job I did pay 10% tax on everything over 4000RMB each month. I also have a friend who is currently working long hours at a private language school (which is his main, legitimate job) and getting taxed on it when it seems he shouldn't be. Does anyone know where I can get hard evidence of these tax laws? (I doubt a copy of my contreact will help my friend out.) I tried this site but it seems you need to register to get the detailed info', and I can't figure out how. I did find this but I am not sure if it will be enough to convince a Chinese employer. I wonder where this money is actually going...  |
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Post by Dr. Gonzo on Jul 24, 2005 2:55:40 GMT 7
MK, many countries have reciprocal taxation agreements, eg, Australia and the UK.
Essentially what it means is you don't pay both treasuries, just the one you choose.
Try convincing your Chinese employer you don't need to pay their smelly taxes because your money is going to swell QE2's coffers though!
The other thing is, should you ever want to change RMB legally, you need the paperwork to show you've paid your Chinese taxes. Insist on tax certificates each month. If they can't/won't supply them, then you are being ripped off.
[BTW, I didn't object to paying what amounted to 5% tax as opposed to the 42% I'm slugged back home. Also, the "fringe Benefits" in China -housing, utilities etc - aren't taxed either]
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Post by Pashley on Aug 23, 2005 8:52:08 GMT 7
My info is for Canada and 10 years old, but I think applies to most countries.
I'm in China, so I pay Chinese tax. This is not horrible. In my last long-term contract, they deducted RMB 175 a month from a 6000 RMB salary. Most of the Western world would kill to get tax rates like that.
Canada makes no claim on income earned outside the country. Nor do most other gov'ts. The US has different rules such that an American working overseas may get hit with US tax.
If I had Canadian income (rented my house there, investments, whatever) then they'd want to tax me too. Since they don't have a tax treaty with China, they'd just take 25% of the Canadian income off the top. Ouch!
For a country like, say, Oz where they do have a treaty, they'd only take 15%. Then, if my Canuckistan income was, say, 10,000 and tax there 1500, I'd report both in Oz. Add 10,000 to my Oz income and calculate tax payable. Then deduct 1500 for tax already paid.
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Crippler
Barfly
Beware the conspiracy!
Posts: 345
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Post by Crippler on Aug 23, 2005 10:20:31 GMT 7
US tax law allows me to earn $75,000 US per year as long as I do not spend more than 30 days a year in USA and don't earn any money there. In China I pay 5% of everything over 4000 Kuai a month.
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gengrant
SuperBarfly! 
Hao, Bu Hao?
Posts: 1,818
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Post by gengrant on Sept 3, 2005 22:32:04 GMT 7
btw, bonuses (such as those usually paid at the end of the contract) are NOT taxed if you can provide travel receipts from the current year showing that you traveled IN China...this only applies to travel outside of a single city (if you travel by bus, train, or plane to another city in China)...it does NOT apply to travel by bus or taxi within your city of residence. You must pay taxes on anything over 4000 RMB, so if you have travel receipts to bring your bonus to below that, you will not pay taxes on the end of year bonus (often called a "travel bonus.")...just thought you'd like to know this!
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Post by Stil on Sept 4, 2005 10:51:52 GMT 7
btw, bonuses (such as those usually paid at the end of the contract) are NOT taxed if you can provide travel receipts from the current year showing that you traveled IN China...this only applies to travel outside of a single city (if you travel by bus, train, or plane to another city in China)...it does NOT apply to travel by bus or taxi within your city of residence. You must pay taxes on anything over 4000 RMB, so if you have travel receipts to bring your bonus to below that, you will not pay taxes on the end of year bonus (often called a "travel bonus.")...just thought you'd like to know this! Did not know this. Thanks for the info. Little late for me, never kept my receipts  |
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Ruth
SuperDuperMegaBarfly
God's provisions are strategically placed along the path of your obedience.
Posts: 3,915
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Post by Ruth on Sept 4, 2005 16:46:58 GMT 7
Thanks for the tip, GG. That's good information to have. I never kept receipts before, either, but will start the practice.
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Post by con's fly is open on Sept 4, 2005 22:31:06 GMT 7
My new school informed me that taxes are my responsibility. I'll bet I could duck them completely if my conscience would allow me. But Chinese tax levels are SOOOOOO mild! Why not pay my due- if I was in power, I would double the rate.
I tried to start a charity, but my headmaster sussed out that it would be poor politic. Deserving people go m'kay yourselves.
Maybe I'll find a good outlet in Suzhou.
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Post by Mr Nobody on Sept 5, 2005 19:50:37 GMT 7
Yeah. Free beer for the needy Saloonies?
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Post by con's fly is open on Sept 8, 2005 23:05:05 GMT 7
Chairty begins at home.  Barkeep, another! Nobby's tab. |
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Post by Mr Nobody on Sept 9, 2005 6:57:19 GMT 7
Oy! This is your charity!
I have my own - it's called the bank.
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