Job Discussion Forums

yamahuh · Joined: 23 Apr 2004 Posts: 1033 Location: Karaoke Hell

I seem to remember reading somewhere that the first 4000 RMB earnings is tax free and that the tax rate goes up incrementally following that.
I think 5000 - 10,000 was 5 %. Can anybody confirm this or post a link where I can find the information?

Thanking you all

Spiderman Too · Posted: Thu Dec 02, 2004 10:52 am Post subject:

Roger · Joined: 19 Jan 2003 Posts: 9138

The actual rate is much higher, more like 20%; that is in theory anyway. Local authorities may elect to enforce a considerably lower rate.

yamahuh · Joined: 23 Apr 2004 Posts: 1033 Location: Karaoke Hell

OK, I just got my first pay cheque and they took 100 from a pay of 5000 so I guess I'm paying 10% on 1000. My boss reimburses it though for some reason Cool

You brought up an interesting point though:

Spiderman Too · Posted: Thu Dec 02, 2004 4:51 pm Post subject:

yamahuh

I convert my money each month because I can (make hay while the sun shines).

I have visited a number of Asia countries (incl. Thailand, Malaysia, Singapore) and observed that RMB could be converted to local currency. However, the exchange rates weren't very good.

Roger has repeatedly reported that converting RMB in Hong Kong is quick & easy and yields a good exchange rate.

Tonight on CCTV9 news, they announced that the government has increased the amount of RMB that can legally be taken out of the country, from 6,000 to 20,000.

cj750 · Joined: 27 Apr 2004 Posts: 3081 Location: Beijing

They tax everything after the first 4000RMB to incl. housing and cost of living allowance.
I am takes at 20% but then some is given back for what reason I havent figured out so when it is done it goes like this...
(pay) + (allowance) = total salary - 4000RMB =total tax obligation x Tax % (mine is 20%) - a sum according to the PRC tax schedule = the ammount of taxes paid...last month I paid 1034RMB to the tax man. Remember to request a formal tax receipt to insure they are really paying it...and to insure that you get what you expected, write the contract to reflect "after tax salary ammount"....

oprah · Joined: 26 Apr 2003 Posts: 382

You can not convert RMB in Canada. As far as I know it is illegal to take rmb to U.S. or Canada..

yamahuh · Joined: 23 Apr 2004 Posts: 1033 Location: Karaoke Hell

tradinup · Joined: 13 Nov 2004 Posts: 132 Location: Shenzhen, China

You can get as much RMB as you want in Canada and bring it all into China... there are restrictions though taking it out of China. I don't know what all these restriction are though.

e_jorgensen · Joined: 06 Jul 2004 Posts: 276 Location: Chico

If you pay tax, you are being tricked by the tricky trickster cracks, taking tribble for trouble, tax for facts, flack stacks of trickster tracks.

"What you make in a month is what some make in a year", is that clever line you may often hear. But hear clear and steer clear of dinner parties and exotic beer.

These lines are worthless I'm sure... But I've never paid tax... or been fooled by the tricky trickster tracks.

oprah · Joined: 26 Apr 2003 Posts: 382

I went to Bank of China in Toronto, and they said they could not change rmb to Canadian dollars. This all about control .. keeping track of the RMB and that tax is paid when it is due.. anything over 4000.

Newbs · Joined: 14 Nov 2004 Posts: 75 Location: Hangzhou, China

Re converting RMB into foreign currency.

There seem to have been stories (rumours) of late of the RMB being revalued upwards. Now, I am NOT holding my breath waiting for that to take place, but if it did, then it would be an advantage to have RMB and not, say, USD. The reason I am not hoding my breath is that I have been hearing stories like that for the past few years at least, but now they seem to be gaining some momentum or something. Granted, if you want to travel in the PRC once you've finished teaching then of course hang on to the RMB.

I'm prepared to stand corrected on this. I didn't fail Economics 101, I didn't even enrol in the bloody subject.

Newbs

quanxie · Joined: 11 Feb 2004 Posts: 91 Location: The Sticks

Here is the tax table from the PRC law book. This are monthly salary amounts and foreign workers are allowed a ￥4000 deduction.

So, if your salary is 5500 then your tax is:

Taxable salary 5500 - 4000 = 1500
---- 1000*15% = 150
------500*20% = 100

Total tax ---------250/month

1. Under ￥ 500 ........................... 5%
2. Over ￥500 -￥2,000 ................ 10%
3. Over￥ 2,000-￥5,000 .............. 15%
4. Over ￥5,000 -￥20,000 ............ 20%
5. Over ￥20,000 -￥40,000 ........... 25%
6. Over￥ 40,000 -￥60,000 ........... 30%
7. Over ￥60,000 -￥80,000 ............ 35%
8. Over￥ 80,000 -￥100,000 .......... 40%
9. Over ￥100,000 .......................... 45%

Good Luck,
Phil

yamahuh · Joined: 23 Apr 2004 Posts: 1033 Location: Karaoke Hell

Thanks for the info folks.
I e-mailed the Royal Bank to ask them what the situation is with converting RMB. I'll post their reply if I get one.

yamahuh · Joined: 23 Apr 2004 Posts: 1033 Location: Karaoke Hell

Golly Gee what do you know? They replied:

We have received your question regarding if it is possible to cash Chinese Renminbi into Canadian dollars when you return to Canada. Thank you for this opportunity to address your inquiry.

Yes, you are able to cash Chinese Renminbi into Canadian dollars. As this is not a currency that is commonly handled, it is done on a collection basis and the process can take up to 5 business days before the amount is credited to your account.

Thank you for your message. We apologize for any inconvenience our delay in responding to your message may have caused. Please do not hesitate to contact us again through this message centre if we may be of further assistance.

So there you have it, smuggle it out and cash it when you get home Cool