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sheeba
Joined: 17 Jun 2004
Posts: 1123
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 Posted: Tue Mar 24, 2009 7:12 am Post subject: |
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To those with UK tax knowledge, working in China and are UK residents.
If you are living and working in China and do a self assessment online do you pay tax due from your China wage to the UK? Or do you do a China self assessment(if possible)?
For example if you have 3 odd grand in income which 400 pounds is due in tax are you paying that to the inland revenueUK or are you declaring this to China? |
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bendan
Joined: 18 Jun 2004
Posts: 739
Location: North China
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| Posted: Tue Mar 24, 2009 2:58 pm Post subject: |
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| If you have been out of the UK since before last April 5, I can't see any way you'd need to declare it in the UK. If the money was earned in China, it's liable to Chinese tax. If you have lived in China continuously for more than five years (Jan to Dec) without a break of at least 30 days then all of your global income is technically taxable in China. |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Tue Mar 24, 2009 3:27 pm Post subject: |
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| bendan wrote: |
Thanks to ymmv for putting such effort into this great summary.
I'm bumping this up as I came across an online calculator you can use to check you are paying the right amount (or to do some "what if" calculations).
http://chinajobline.com/index.php/tax-calculator.html |
For some reason, the link renders gibbersih when clicked within Opera (my browser of choice). But switching to Safari, it's a GREAT link. The calculator is simple to use and renders an amount immediately.
I tested it with some of the past figures we've monkeyed about with in these China Tax threads, and it coincided each time.
So if you want the quick, numerical answer to the question "how much Chinese tax will be taken out pf my salary", without the "hard slog" of wading through this post and the linked posts for the how and why, go to bendan's link here:
http://chinajobline.com/index.php/tax-calculator.html
Type in your salary and there's your tax due. |
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sheeba
Joined: 17 Jun 2004
Posts: 1123
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| Posted: Wed Mar 25, 2009 12:35 am Post subject: |
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| Quote: |
| If you have been out of the UK since before last April 5, I can't see any way you'd need to declare it in the UK. If the money was earned in China, it's liable to Chinese tax. If you have lived in China continuously for more than five years (Jan to Dec) without a break of at least 30 days then all of your global income is technically taxable in China. |
hmmm. Well I've been making self assessments for the last five years to the UK! Anyone else doing this? They want to know about foreign income and add this to your overall income as far as I'm aware. Problem is I have to pay them the tax of course but I'm fine with that if it is what I should be doing. |
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bendan
Joined: 18 Jun 2004
Posts: 739
Location: North China
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| Posted: Wed Mar 25, 2009 2:22 am Post subject: |
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You said you were UK resident. Why do you consider yourself UK resident? I thought you were working here. We'd need to know much more info about your situation before we could offer any useful advice.
If you are living in China and earning all your income in China, there's no need to pay UK tax on it. You can still make voluntary NI payments without being resident (and paying taxes) in the UK. |
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sheeba
Joined: 17 Jun 2004
Posts: 1123
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| Posted: Wed Mar 25, 2009 4:11 am Post subject: |
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Bendan
For tax purposes yes I think I am considered UK citizen. I've been back to England numerous times over the past five years. I spoke to the inland revenue previous about this and they said I was UK citizen for tax purposes. |
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robot
Joined: 14 Dec 2008
Posts: 25
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| Posted: Wed Mar 25, 2009 12:47 pm Post subject: |
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UK citizen is different to where you reside,
General rule if you spend most of your year outside the UK, you don't need to pay tax on earnings from work done in China.
you can make voluntary contributions to NI. |
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KarenB
Joined: 20 Sep 2005
Posts: 227
Location: Hainan
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| Posted: Fri Apr 03, 2009 11:04 am Post subject: SAFEA site needs to update |
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Bump
A lot of us are negotiating contracts right now, so this is pertinent info. Should be on first page.
SAFEA site is still posting 4000 as the tax threshold, and a 10% tax on anything over 4000.
Does anyone know if "vacation pay" is taxable? Not travel allowance -- I know that isn't, but vacation pay or other holiday bonuses? |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Sun Jun 14, 2009 6:54 pm Post subject: Re: SAFEA site needs to update |
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| KarenB wrote: |
Bump
A lot of us are negotiating contracts right now, so this is pertinent info. Should be on first page.
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Bump |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Sun Jul 19, 2009 2:53 am Post subject: |
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| Bump |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Mon Oct 25, 2010 2:54 pm Post subject: |
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| Bump |
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xiao51
Joined: 06 Feb 2009
Posts: 208
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| Posted: Fri Oct 29, 2010 5:12 am Post subject: |
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I noticed that this thread is nearly two years old. Is the tax information still relevant? Has it been modified, perhaps, or amended? Have there been any changes to the threshold, etc.? Thanks. |
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JamesD
Joined: 17 Mar 2003
Posts: 934
Location: "As far as I'm concerned bacon comes from a magical happy place."
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| Posted: Fri Oct 29, 2010 5:34 am Post subject: |
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| Threshold is now 4800. |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Fri Oct 29, 2010 6:34 am Post subject: |
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| JamesD wrote: |
| Threshold is now 4800. |
It was 4800 when this thread was originally written in November of 2008. Go back and read the second sentence in the initial post. |
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xiao51
Joined: 06 Feb 2009
Posts: 208
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| Posted: Sat Oct 30, 2010 12:25 am Post subject: |
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| JamesD wrote: |
| Threshold is now 4800. |
Dear James,
Thanks for the update.
XL |
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