Job Discussion Forums

[Chemenway]

My school (Kangding Nationalities Teachers College, Ganzi Prefecture, Sichuan) just announced that our already meager salaries (3,000rmb/mo) are now subject to taxes because the tax law has just changed.

Does anyone know anything about this? Or know where to find out?
I know the law has recently changed but have no idea if we are affected by it or if the 4,000 rmb tax exemption is still in effect.

Catherine

[Louras]

They are screwing you even further

[tw]

[boxcarwilly]

The first 4,000 RMB are still not taxable. If anything the floor will be raised in in the future but not lowered. The tax law for foreigners is really quite simple; your accounting department should have a copy and it's less than one page. Don't forget all you that are paying your own rent that the rental amount is deductible from your gross pay to arrive at your taxible income. The school that is trying to tax you on 3,000 RMB wages is not correct and don't let them get away with it.

[7969]

after three different jobs in china, one with a monthly salary below RMB4000 and two where it was above, i still have not paid a single yuan in tax. i like this system.....

[clark.w.griswald]

I am not so sure that the school is lieing, but they may certainly have misunderstood the changes so I think it wise to clarify this for yourself.

There are definitely changes to the tax system starting next year. I am unclear however whether these changes will have an impact upon 'foreign experts' and I hope that someone may be able to clarify this. If not then the school may be mistakenly assuming that these changes will affect you when they don't.

Currently every worker gets a tax free amount of RMB800 per month such that you only get taxed upon amounts earned in excess of this. From next year this minimum will double to RMB1,600. Therefore locals earning more than RMB800 but less than RMB1,600 per month will no longer need to pay tax. People earning over RMB1,600 per month are required to pay taxes on the amount earned in excess of the RMB1,600 threshold. This is where there may be differences when it concerns foreign experts as I know that a tax free threshold of RMB4,000 is widely touted on this forum.

I am certain that there are changes in the tax legislation to be brought in next year.

For a copy of the current tax legislation in English please click here.

The RMB4,000 tax free threshold for foreigners is based upon the RMB800 threshold that everyone gets, plus a special RMB3,200 threshold for foreign staff coming to a total of RMB4,000. Considering the changes coming in next year to the general deduction threshold it would seem that perhaps foreign teachers can now earn up to RMB4,800 per month tax free. If so then we have the OP to thank for bringing this all to our attention

[Mysterious Mark]

Yesterday Biz China on CCTV-9 reported that Shanghai had raised the tax threshold for expats from 4,000 to 4,800 per month.

It was also reported that the average expat income in Shanghai is 32,000 per month, that 7 groups of expat workers are still exempt from taxes, and that the number of expats in Shanghai is expected to grow by 20,000 per year, if I remember correctly.

[clark.w.griswald]

[Super Mario]

Try these:
http://english.taxinfo123.com/news/showcontent.asp?news_id=1516

http://www.dezshira.com/china_individual_income_tax.htm

http://www.worldwide-tax.com/china/china_tax.asp

The song remains the same.

[kev7161]

On Friday, I deposited money into my BoC savings account. I was surprised to see that I had earned interest in the amount of 12.72rmb. Woo-hoo!

Then I was dismayed to see a TAX deduction of 1.27rmb (!) and another deduction under the code "AFE" of 10rmb. Does anyone know "AFE". It can't be ATM fees (or can it?) because I rarely use my ATM card in any other teller besides a BoC machine. In the past, they've always broken those fees down into 1rmb increments anyway. I'll ask about it next time I go in.

They giveth and then they taketh away!