Job Discussion Forums

xjgirl · Joined: 02 Feb 2010 Posts: 242

As above, who gets taxed on their airfare bonus?
I do, last year July's salary was paid in july, together with a 9000 bonus(airfare) and
junes salary, all taxed.
Now, I wasn't around back then, but I definitely want to avoid this bloody tax massacre. Surely this bonus can be called as an airfare expense and be non-tax deductable?

Edit, i was checking stuff out, and it appears that in the 20000-40000 income bracket, the maximum tax deductable amount would only be 1350rmb

petebeatstreet · Posted: Mon May 23, 2011 3:39 am Post subject:

I aint taxed. 8K cash in hand, but I do have to provide receipt, boarding passes and E-ticket to the HR lady.

Steve_McQueen · Joined: 04 Dec 2009 Posts: 37

OP, are you talking about Chinese income tax or filing with the IRS in the States?

xjgirl · Joined: 02 Feb 2010 Posts: 242

sorry, i mean your local chinese tax bureau

Silent Shadow

xjgirl · Joined: 02 Feb 2010 Posts: 242

yes, thats what happened, it was all paid together in july
so got taxed very heavily

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

I think all of us need to make sure we are asking the right questions these days before signing a contract. To date, I have never been taxed on airfare. However, my school's accounting department has made a new policy that, in order to get a full airfare refund (up to 10,000 rmb), that we must provide a CHINESE red-stamped receipt. Nevermind that most of us do our bookings online using our foreign credit cards, get e-tickets and e-receipts and often fly via non-Chinese air carriers. During the winter holiday, I actually did fly on China Southern, asked the help desk for a receipt as my school required it, and then had to call someone at the school (woke him up on a Sunday morning, poor guy) and he explained it all in Chinese . . . . never got the receipt. However, my school somehow managed to cover all my airfare refund regardless.

I asked someone who delivered the message that how, exactly, were all the teachers at this school (we have 28 currently) were supposed to get Chinese-made receipts with the red chop. This was, after all, 2011 and most of us use the convenient new-fangled way of purchasing tickets. I was told that they would help us through a trusted travel agency. When I found my round trip flight home this summer on Delta airlines' website for the ridiculously low price of 5400 rmb, I called the office and was advised to buy it and they'd, somehow, cover my total cost. ????? I guess rules are always made to be broken or at least circumvented.

7969 · Joined: 26 Mar 2003 Posts: 5782 Location: Coastal Guangdong

I claimed airfare at my school for the first four years, ranged between RMB11000-15000 per year. Never taxed on that, just submit the e-ticket and they deposit to my account a week later.

However our school no longer reimburses for airfare starting this year. Instead they've increased the monthly salaries ~1500, which in my opinion, is better. Same money overall, but no hassles at year's end and you get the money up front.

mat chen · Joined: 01 Nov 2009 Posts: 494 Location: xiangtan hunan

Wage slaves.

tributary · Joined: 04 Apr 2011 Posts: 28

If you don't stand up then you'll get screwed... deservedly so

First of all

Taxes are to be applied to EACH individual monthly salary and not a combined single cash payment for more than one pay period - the math works out differently if combined

Technically speaking, airfare is not a reimbursement in all cases. If you are reimbursed, then it's non-taxed. If you are given some payment in lieu of an air ticket, then it's taxable.

You need to be smart on how to obtain this money. Have your contract clear - you get this XXX amount in cash - you need to have that amount whether they take taxes out or not.

It's all in the wording and your employers so-called "policy" as they always claim.

It's screwy to think anyone would allow them to combine multiple money payments into one lump sum and apply the tax to the total.

Make it clear to the powers-that-be ... you "should" in most cases get a flat-sum of cash - not taxed - unless you allowed that to happen in the first place. If you aren't willing to fight them for it, then don't ask the question in the first place.

Silent Shadow

ymmv · Joined: 14 Jul 2004 Posts: 387

xjgirl · Joined: 02 Feb 2010 Posts: 242

yeah I know all about the tax calculator,

And where did you get this 14000rmb figure from?

Like I said already, in the 20000-40000 bracket
the most you can claim as a tax deductable is 1350

Silent Shadow · Posted: Tue May 24, 2011 1:12 am Post subject:

xjgirl · Joined: 02 Feb 2010 Posts: 242

My fault, I phrased it badly.

Is there any real difference between a cash payment or a cash reimbursement in the end anyway?
I can easily provide a receipt, does this then make it a reimbursement?

From what I can tell, unless your airfare bonus is paid in monthly installments, it would be difficult to claim it as a tax deductable, as the maximum amounts exempt from tax are very low

". Foreigners' housing allowance, meal allowance, removal expenses and laundry fees in non-cash forms or in the form of cash reimbursement; and business travel allowance, home visit allowance, language training expenses and children's tuition fees at reasonable levels;"

"The portion of income in excess of RMB 5,000 to RMB 20,000
375

The portion of income in excess of RMB 20,000 to RMB 40,000
1375

The portion of income in excess of RMB 40,000 to RMB 60,000
3375"