Job Discussion Forums

[sanpedro72]

Dear all,

I haven't taught in China before and would like to know the current tax rate from someone who lives and works there. I have found some links from searching but unsure about their authenticity. I would like to also know if any of this tax is refundable (like in Korea). Thank you for your attention and help.

Cheers!
J

[sanpedro72]

Apparently China seems to also be one of the few countries to deduct salary for probationary reasons from one to three months. What is this standard amount and is this a constant? Is it worth debating during contract negotiations?

Thanks again!

[wangdaning]

Not sure where to find up to date tax info. There is the tax and the social insurance, depending where you go. You can negotiate that your pay rate in the contract be written as after deductions.

As for the probationary period, not standard at all. If a company puts that clause in and wont take it out, well, avoid that place.

[johntpartee]

4800 per month and lower is not taxed. If you earn between 5000 to 6000 (that's most teachers), the tax is about .003 percent (that's one-third of one percent). Negligible.

The probationary period is pretty standard in most contracts, but any deductions related to probation are not. HUGE red flag.

[twilothunder]

Yeah, probationary period is standard and expected in both China and the UK and I expect many other countries too, across most industries.

Three months probationary period or thereabouts is the norm in my experience. I wouldn't be happy signing a contract with a probationary period of much more than that.

[Banner41]

If they really want you, you can negotiate the probation period out of the contract.

There is a standard 4800 yuan deduction for foreigners where you pay nothing. The tax rate is a sliding scale. the more you make the higher it goes percentage wise up to 25% (but that is on salaries that most teachers would never hit) You can't claim back the tax you pay but you can claim back some of the social insurance you may have to pay. Not everyone is paying this and it's rather new so the details on how to claim back are a bit muddled at this time.

[choudoufu]

actually........(according to shanghai tech writer)...

yes, the first 4800 is not taxed. above that are variable rates.
kinda confusing as there are also some deductions.

0 to 4800 not taxed
4801 to 5300 taxed at 5% with no deduction. (after minusing 4800!)
5301 to 6800 taxed at 10% with a 25 rmb deduction.
6801 to 9800 taxed at 15% with a 125 rmb deduction.
9801 to 24800 taxed at 20% with a 375 rmb deduction.
.....
above 100K, you're taxed at 45% with a 15K deduction.

salary of 6000?

6000-4800=taxable salary of 1200.
first 500 taxed at 5% = 25 rmb
remaining 700 taxed at 10% minus 25 rmb = 45 rmb
total tax on 6000=70 rmb.

of course i could be wrong, or your school's accounting office might
not understand the tax regulations, or your school might not be
paying tax on your salary, or something else.

another poster, naturevalleygirl (?) provided info on a 3-year tax
break for new expats in china. didn't seem to be worth the trouble
on a university salary though.


i couldn't find probation clauses in any of my contracts, all at
universities or colleges. i'd guess probation is more likely to occur
at private language schools. regardless, you can negotiate that
clause out (or try elsewhere).

[johntpartee]

Probation periods don't bother me at all. I've taught at government schools only (in China) and every contract has had a three month probation period (but never with any deductions associated with same). Doesn't matter anyway, if they want to get rid of you, they will!

[Banner41]

Probation periods can be good if it doesn't affect the money part. Three months on a reduced salary is just dumb. A probation period can work out for you if you get to the school and don't like it, it makes for an easy legal break. The language in the contract usually says if either party is unhappy then they may end the contract at any time before the three month probation period.

[Markness]

We supposed to pay taxes back to our home countries? :O lol

[twilothunder]

[mw182006]

[El Macho]

[johntpartee]

[mw182006]

I'll have to look into turbo tax's policies/rates on this type of filing. I've never paid to file through them but it wouldn't surprise me if they tried to make some easy bucks off expats.