Job Discussion Forums

Lorean · Joined: 21 Dec 2006 Posts: 476 Location: Beijing

Typically, income is deducted from an ft's monthly salary upon money deposit.

In certain situations, the employer hands the ft money in a brown paper bag. In this situation:
Which party is legally responsible for payment of income tax?
How would the (willing) ft pay income tax? Who should they contact?

I'm a certain situation where it may be important for me to keep things on the "up and up".

tw · Joined: 04 Jun 2005 Posts: 3898

To my understanding and from personal experience, the employer is responsible for deducting your income tax and paying it to the tax bureau. Whatever amount you get is after taxes.

englishgibson · Joined: 09 Mar 2005 Posts: 4345

i wouldn't count on that one above

an income tax's an interesting topic to discuss on our forums, but do we really know who's been reading on and inviting such a discussion may prompt authorties to act swiftly against us Wink

do you guys really want to pay that 10 percent, if you haven't Confused

OP, it's a lovely addition in Wink

peace to all chofficials around
and
cheers and beers to the red mao tze tung in my pocket Very Happy

Anda · Joined: 16 Jan 2003 Posts: 2199 Location: Jiangsu Province

Tax is fun and games as it can be linked to your home country as well. First off we are responsible as in our home countries. That doesn't mean that your employer isn't responsible as well. But say you have a private student that pays you cash in hand then you have to declare that money and add it to what ever other income you have and pay the tax.

Now say for Australia if I being Australian say work out of Australia for part of the tax year then I must all my overseas income in too.

Now this means that say that the tax rate is 10% here but 35% in Australia then I have to pay Australia the 25% difference.

If I am out of Australia for an extended period then I only have to pay the tax rate for whatever country that I am working in.

beautification · Joined: 09 Jan 2007 Posts: 111

In some cases you'll have to show the bank tax slips if you want to convert money from RMB. My contract says I'm responsible for my taxes, but I asked my school and they now make the deduction. I had posted a similar topic a few months ago and most posters said the school is responsible.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

You are both responsible. You should know the laws. I know of schools (usually smaller ones) who cheat on this, that is ask ofr taxes from their Chinese or foreign teachers, but never give the tax to the government. School I worked at once tried doing this.

The school has the definite legal obligation to provide you with the tax receipt, Chinese law of course always being strictly obeyed, it is hard to get the school to give you the receipts. We pay taxes on anything above 4,800. My understanding is that this is for salary only (unlike the West, where plane tickets, house fees etc. woul;d be part of the salary)

You are making more then 4,800?
The easiest way to protect yourself without creating friction, is to ask for the copy of the receipt that you sign when you receive the money.
You don't sign for the money? Then whatever the contract says. If the contract says 6,000 per month, but they just give you 5,600, claiming they paid the taxes (but this isn't stated in the contract), you arer SOL, the taxes (if they didn't pay) are your responsibility

arioch36 · Joined: 21 Jan 2003 Posts: 3589

Because my official salary is 4,800 or less, the Bank of China agreed that I didn't need the tax slip for changing money

Lorean · Joined: 21 Dec 2006 Posts: 476 Location: Beijing

My University employer did not pay my August salary until early September. They usually pay me via depositing the amount in my account. However, this time I got the 'brown envelope'.

They claimed that the bank of China has some new rule that requires them to tax deposits. I called BS.

Lorean · Joined: 21 Dec 2006 Posts: 476 Location: Beijing

I need to add that my two month of salary are above the 4800 tax-free limit.

kev7161 · Joined: 06 Feb 2004 Posts: 5880 Location: Suzhou, China

I negotiated this year on how much I'd like to earn as my NET pay. In my contract, they state my GROSS pay (pre-tax). The school takes out the difference (I assume) and I get my net pay. I also get a slip that notes the gross and net. I sign it, make a copy across the hall in the copy room and save the slips in an envelope at home. If the school is doing something wonky with taxes, I'm just covering my own a$$ if there are ever any inquiries. I have no problem exchanging up to 70% of my pay at the local ICBC as long as I have my passport, FEC, and a copy of my contract.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

If they are taking out taxes, they must give you the receipt, simple as that. Knowing Chinese offices, it is quite possible that they are not "cheating" you, but that the person you are dealing with doesn't understand what to do, and doesn't want to ask anyone (face, ya know?)

The person you deal with in the FAO office, young and just out of school, or a older leader?

Insist they show you the tax rate and give you the tax receipt. Actually easy for them to do, they just have to go to the tax bureau

Do you sign anything when you receive your money???

OGFT · Joined: 24 Jun 2006 Posts: 432

You can go to the local tax office and give them your school name and passport number and find out if they are paying your tax. In my experience, if the school is deducting for taxes, you and the taxman are getting cheated.

Lorean · Joined: 21 Dec 2006 Posts: 476 Location: Beijing

Hey, there are two FOA employees who directly manage the FTs.

One has been doing it for some time. The other one claims to have been a practicing lawyer.

Yes, I signed two pay slipsone for August and one for September. But I did not think to ask for copies. When the school deposits money in my bank account I do not sign anything.