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toteach
Joined: 29 Dec 2008
Posts: 273
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 Posted: Sun Jan 25, 2015 1:49 pm Post subject: My school isn't paying full taxes...Is this a problem? |
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| Bud Powell wrote: |
| El Macho wrote: |
| It's easy to find out if your school has been paying taxes or not. Ask your FAO for a 个人所得税完税证明. If they don't want to give you one, ask which branch of the tax bureau is responsible for your school. Go to the tax bureau with your passport and ask for your tax statement. You'll get a printout showing how much was paid month by month, which they will stamp. |
And if you've been at that school for several years, you're responsible for a whopping bill for back taxes.
If your school pays you in cash, it doesn't pay taxes. |
I'm quoting an old thread because I didn't want to bump it...
I've just found out that my school is not paying taxes on 2/3 of my (and all foreign teachers') pay. Is it possible this can come back to bite me--like will China insist I pay back taxes eventually? Or will the school always be responsible for them? Hmmmm.... |
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maxand
Joined: 04 Jan 2012
Posts: 318
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| Posted: Sun Jan 25, 2015 5:23 pm Post subject: Re: My school isn't paying full taxes...Is this a problem? |
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[quote="toteach"]
| Bud Powell wrote: |
| El Macho wrote: |
| It's easy to find out if your school has been paying taxes or not. Ask your FAO for a 个人所得税完税证明. If they don't want to give you one, ask which branch of the tax bureau is responsible for your school. Go to the tax bureau with your passport and ask for your tax statement. You'll get a printout showing how much was paid month by month, which they will stamp. |
And if you've been at that school for several years, you're responsible for a whopping bill for back taxes.
If your school pays you in cash, it doesn't pay taxes. |
I'm quoting an old thread because I didn't want to bump it...
I've just found out that my school is not paying taxes on 2/3 of my (and all foreign teachers') pay. Is it possible this can come back to bite me--like will China insist I pay back taxes eventually? Or will the school always be responsible for them? Hmmmm....[quote]
out of curiosity....Public university? private institution? language school? |
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maxand
Joined: 04 Jan 2012
Posts: 318
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| Posted: Sun Jan 25, 2015 5:23 pm Post subject: Re: My school isn't paying full taxes...Is this a problem? |
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[quote="toteach"]
| Bud Powell wrote: |
| El Macho wrote: |
| It's easy to find out if your school has been paying taxes or not. Ask your FAO for a 个人所得税完税证明. If they don't want to give you one, ask which branch of the tax bureau is responsible for your school. Go to the tax bureau with your passport and ask for your tax statement. You'll get a printout showing how much was paid month by month, which they will stamp. |
And if you've been at that school for several years, you're responsible for a whopping bill for back taxes.
If your school pays you in cash, it doesn't pay taxes. |
I'm quoting an old thread because I didn't want to bump it...
I've just found out that my school is not paying taxes on 2/3 of my (and all foreign teachers') pay. Is it possible this can come back to bite me--like will China insist I pay back taxes eventually? Or will the school always be responsible for them? Hmmmm....[quote]
out of curiosity....Public university? private institution? language school? |
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toteach
Joined: 29 Dec 2008
Posts: 273
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| Posted: Sun Jan 25, 2015 10:11 pm Post subject: |
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| A private institution that is working towards IB certification. |
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Non Sequitur
Joined: 23 May 2010
Posts: 4724
Location: China
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| Posted: Sun Jan 25, 2015 11:29 pm Post subject: |
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| toteach wrote: |
| A private institution that is working towards IB certification. |
..and your visa status?
If employer doesn't have right to employ foreign staff they may not want to show the authorities that they deducting money from a 'John Doe' |
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Bud Powell
Joined: 11 Jul 2013
Posts: 1736
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| Posted: Mon Jan 26, 2015 3:01 am Post subject: |
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One FAO explained to me that FTs at public institutions are considered temporary, and therefore, many FAOs DON'T report their income. She didn't say that the schools weren't required to report income. They just don't. For years, I thought that there was some sort of scam going on, but observation of how affairs are run led me to the conclusion that FAOs don't report if they don't think they'll get into trouble over it.
In my part of China, there's a lackadaisical attitude toward so many things, and the attitudes are probably pervasive throughout China. Laws are considered mere suggestions until word comes down from on high that heads will roll if everyone doesn't fall into line. Even then, resolve turns to dissolve pretty fast because so many people just ignore laws that they find inconvenient. The government can't put everyone in jail.
If you go with the flow, you'll be okay most of the time. As someone pointed out in another thread, it's when you put your foot down and make noise that you find yourself in trouble. I know from personal experience.
Play Stepin Fetchit, and you'll have the fewest problems.
Really. |
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toteach
Joined: 29 Dec 2008
Posts: 273
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| Posted: Mon Jan 26, 2015 3:34 am Post subject: |
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| Non Sequitur wrote: |
| toteach wrote: |
| A private institution that is working towards IB certification. |
..and your visa status?
If employer doesn't have right to employ foreign staff they may not want to show the authorities that they deducting money from a 'John Doe' |
One year "Z" visa. |
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Non Sequitur
Joined: 23 May 2010
Posts: 4724
Location: China
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| Posted: Mon Jan 26, 2015 6:15 am Post subject: |
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| toteach wrote: |
| Non Sequitur wrote: |
| toteach wrote: |
| A private institution that is working towards IB certification. |
..and your visa status?
If employer doesn't have right to employ foreign staff they may not want to show the authorities that they deducting money from a 'John Doe' |
One year "Z" visa. |
Thanks for that toteach.
I guess Bud's take is correct.
But if the FAO collect tax but don't pass it on it's goin somewhere.
But hey no skin off your nose as long as you can prove tax was deducted if asked. |
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doogsville
Joined: 17 Nov 2011
Posts: 924
Location: China
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| Posted: Mon Jan 26, 2015 8:40 am Post subject: |
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| You say that they're not paying tax on 2/3 of your salary, which implies that they are paying it on the remaining third. Are you sure you're not confusing that with the tax allowance? You shouldn't pay any tax on the first 4800 of your monthly salary anyway, only on whatever you earn above that. So if you earn, let's say 6000, you only pay tax on 1200, and the rate is on a sliding scale, but even if it's 10% you'd only be paying 120 a month. |
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toteach
Joined: 29 Dec 2008
Posts: 273
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| Posted: Mon Jan 26, 2015 9:42 am Post subject: |
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| doogsville wrote: |
| You say that they're not paying tax on 2/3 of your salary, which implies that they are paying it on the remaining third. Are you sure you're not confusing that with the tax allowance? You shouldn't pay any tax on the first 4800 of your monthly salary anyway, only on whatever you earn above that. So if you earn, let's say 6000, you only pay tax on 1200, and the rate is on a sliding scale, but even if it's 10% you'd only be paying 120 a month. |
Good to know about the scale. Any idea where I can find out more? My accountant back home wants to know what I'm being taxed here, so I'm not over-taxed at home... |
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Alien abductee
Joined: 08 Jun 2014
Posts: 527
Location: Kuala Lumpur
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| Posted: Mon Jan 26, 2015 10:13 am Post subject: |
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| toteach wrote: |
| doogsville wrote: |
| You say that they're not paying tax on 2/3 of your salary, which implies that they are paying it on the remaining third. Are you sure you're not confusing that with the tax allowance? You shouldn't pay any tax on the first 4800 of your monthly salary anyway, only on whatever you earn above that. So if you earn, let's say 6000, you only pay tax on 1200, and the rate is on a sliding scale, but even if it's 10% you'd only be paying 120 a month. |
Good to know about the scale. Any idea where I can find out more? My accountant back home wants to know what I'm being taxed here, so I'm not over-taxed at home... |
http://www.sjgrand.cn/individual-income-tax-calculator
I thought it was widely known that the first 4,800元 of income is exempt of tax. For anyone earning ~7,000元 or less then 2/3 or more of your income is not taxed. How many ESL teachers are paying tax in their home countries on income earned here in China? Anyone who's worried about being overtaxed here or anywhere else must be earning an awful lot of money. |
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Bud Powell
Joined: 11 Jul 2013
Posts: 1736
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| Posted: Mon Jan 26, 2015 11:49 am Post subject: |
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| toteach wrote: |
Good to know about the scale. Any idea where I can find out more? My accountant back home wants to know what I'm being taxed here, so I'm not over-taxed at home... |
Your accountant (if he's American) should know that unless you make something in the neighborhood of $93,000.00 per year, you won't pay income tax at home, but you must file anyway. I don't know what the law says in other parts of the west. |
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toteach
Joined: 29 Dec 2008
Posts: 273
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| Posted: Mon Jan 26, 2015 2:59 pm Post subject: |
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| Bud Powell wrote: |
| toteach wrote: |
Good to know about the scale. Any idea where I can find out more? My accountant back home wants to know what I'm being taxed here, so I'm not over-taxed at home... |
Your accountant (if he's American) should know that unless you make something in the neighborhood of $93,000.00 per year, you won't pay income tax at home, but you must file anyway. I don't know what the law says in other parts of the west. |
Yep. And yep. |
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Lost.And.Found
Joined: 20 Jan 2015
Posts: 42
Location: The Middle Kingdom
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| Posted: Thu Feb 05, 2015 8:31 am Post subject: |
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| How much are they deducting from you pay (%) and where do you think the money is going? |
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toteach
Joined: 29 Dec 2008
Posts: 273
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| Posted: Sat Feb 07, 2015 5:55 am Post subject: |
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| Lost.And.Found wrote: |
| How much are they deducting from you pay (%) and where do you think the money is going? |
The Finance Office gave me the address to the local tax bureau and told me I'd have to put in an official request with them to obtain an official tax--but they wouldn't tell me. They could easily have told me the amount, so it's a bit dodgy to me.
But I've turned a new leaf, and as Bud suggested, I'm now going to keep my mouth shut and start "stepping and fetching." I just need to step back from caring. |
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