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johntpartee
Joined: 02 Mar 2010
Posts: 3258
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 Posted: Sun Oct 24, 2010 3:03 am Post subject: Income Tax |
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| I can't find this addressed anywhere. Is income tax in China pro-rated for the year? 4800 per month is the cut-off for income tax. Is that 4800 AVERAGE per month? If the expat earns 5000 per month for 10 months does he owe any tax? |
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xiao51
Joined: 06 Feb 2009
Posts: 208
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| Posted: Sun Oct 24, 2010 12:23 pm Post subject: Re: Income Tax |
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| johntpartee wrote: |
| I can't find this addressed anywhere. Is income tax in China pro-rated for the year? 4800 per month is the cut-off for income tax. Is that 4800 AVERAGE per month? If the expat earns 5000 per month for 10 months does he owe any tax? |
It is not pro-rated or averaged at all. It is a progressive tax that kicks in in various increments beginning at RMB 4,800 (or somewhere around there) and then the calculation on how much tax is owed are incredibly arcane.
If your employer collects income tax from you, you should absolutely insist upon a stamped, official tax receipt from the Foreigner Tax Department of the local Taxation Department for many reasons. |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Mon Oct 25, 2010 3:10 pm Post subject: |
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Taxes are calculated and assessed per MONTH in China, so figure out your tax per month-not spread over a year or pro-rated or averaged.
Here's the thread that explains how taxes work here:
http://forums.eslcafe.com/job/viewtopic.php?t=66479
For an easy way to calculate your taxes on a monthly basis, go here and run your months' earnings through its calculator:
http://chinajobline.com/index.php/tax-calculator.html
This is issue is no longer arcane, so you can ignore the noise from the previous poster. |
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kev7161
Joined: 06 Feb 2004
Posts: 5880
Location: Suzhou, China
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| Posted: Mon Oct 25, 2010 9:55 pm Post subject: |
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I've always negotiated for a NET salary on my contract - - what I'd like to be taking home in my pocket every pay day. The school gives me a receipt with my pay that shows a gross pay, the taxes they took out, and the money I'm receiving. I don't do the calculations to make sure everything is as it should be because I'm getting what I'm expecting, every month, down to the jiao. In 5+ years at the same school, I've never had a problem to date.
BTW: The same deal goes for any bonuses or extra pay. I automatically get the amount they've told me I'll receive (I get a monthly bonus for an extra job I do, plus a semester bonus for job performance and consistency). If there is a tax to be levied, I don't need to worry about it. |
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7969
Joined: 26 Mar 2003
Posts: 5782
Location: Coastal Guangdong
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| Posted: Tue Oct 26, 2010 4:08 am Post subject: |
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actually "the noise" from xiao51 is correct. its a progressive tax that, according to your very own link above, kicks in at 4800. and much of the tax law in china is arcane to most of us. hence, the reason for this thread. |
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auchtermuchty
Joined: 05 Dec 2009
Posts: 344
Location: Beijing
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| Posted: Sat Nov 06, 2010 2:10 pm Post subject: Re: Income Tax |
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| xiao51 wrote: |
.. the calculation on how much tax is owed are incredibly arcane.
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I'd have to agree with ymmv. It's not "incredibly arcane" at all. Very simple (some might say overly simple) system, based on widely-published regulations. Contrast it with the situation over visas. Now that's arcane.
If you really do find it all too difficult, just use the link provided. |
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7969
Joined: 26 Mar 2003
Posts: 5782
Location: Coastal Guangdong
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| Posted: Sat Nov 06, 2010 11:51 pm Post subject: |
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| i guess some people never learned the definition of arcane, including the above poster. if everyone knew the tax laws of china (who even knows the tax laws of their own country?) then these laws wouldn't be so arcane. |
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auchtermuchty
Joined: 05 Dec 2009
Posts: 344
Location: Beijing
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| Posted: Sun Nov 07, 2010 1:27 pm Post subject: |
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| 7969 wrote: |
| i guess some people never learned the definition of arcane, |
Yes, that seems apparent.
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.. if everyone knew the tax laws of china (who even knows the tax laws of their own country?) then these laws wouldn't be so arcane. |
No, if everyone wanted to know the tax laws of China but they were too difficult to understand, or too difficult to find, or ever-changing, then they would be arcane. In fact, they're readily available for everyone to see (just use Google), haven't changed for a long time, are applied properly by the tax department (but maybe not your employer), and (for personal income tax, at least) are very easy to understand due to their relative simplicity.
You can't (accurately) describe something as arcane simply because people aren't interested in it. |
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ymmv
Joined: 14 Jul 2004
Posts: 387
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| Posted: Sun Nov 07, 2010 1:44 pm Post subject: |
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The issue here is Income Tax. My third post deals with/has dealt with that issue. Go to that link. It hasn't changed in well nigh 4 years.
If you want to argue about the definition and usage of arcane and so forth, start a new thread.
To quote Oxford Dictionary entry on "arcane":
ORIGIN mid 16th cent.: from Latin arcanus, from arcere �to shut up,�
Which is what all of us need to do on this thread and go to the thread that answers the questions. |
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