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What Impact?-New Social Welfare Tax Law for Foreign Workers
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steve b



Joined: 31 May 2011
Posts: 293
Location: China

PostPosted: Tue Nov 08, 2011 10:43 am    Post subject: Reply with quote

Despite reports that this has been rolled out in the large cities, I have information that nobody in Shanghai is yet paying the tax as even if employers deduct it there is nowhere for companies to pay it to. There is a meeting this Friday between major foreign business owners and the government to argue against it. Opinion seems to be that the tax will go ahead and that foreign workers will simply be given a pay increase by employers to cover it. It is highly unlikely the latter will apply to teachers though!

If and when I get further news following the meeting I will post.
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jayjjasper



Joined: 27 Aug 2011
Posts: 344

PostPosted: Tue Nov 08, 2011 12:48 pm    Post subject: Reply with quote

One school at least I spoke too is collecting the revenue but has no place to put it as the instrument to collect and account hasn't been implemented yet...
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Miles Smiles



Joined: 07 Jun 2010
Posts: 1294
Location: Heebee Jeebee

PostPosted: Tue Nov 08, 2011 1:11 pm    Post subject: Reply with quote

jayjjasper wrote:
One school at least I spoke too is collecting the revenue but has no place to put it as the instrument to collect and account hasn't been implemented yet...


That sounds probable.

Mine is collecting nothing, including taxes.


Last edited by Miles Smiles on Wed Nov 09, 2011 2:03 am; edited 1 time in total
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jayjjasper



Joined: 27 Aug 2011
Posts: 344

PostPosted: Wed Nov 09, 2011 12:25 am    Post subject: Reply with quote

Back Payments will be collected ...... maybe
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Opiate



Joined: 10 Aug 2011
Posts: 630
Location: Qingdao

PostPosted: Wed Nov 09, 2011 3:14 am    Post subject: Reply with quote

jayjjasper wrote:
One school at least I spoke too is collecting the revenue but has no place to put it as the instrument to collect and account hasn't been implemented yet...


You seem very trusting. I hope your school earned that trust with you.
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lionheartuk



Joined: 03 Jun 2005
Posts: 173
Location: Guangdong

PostPosted: Thu Nov 10, 2011 3:34 am    Post subject: Reply with quote

One teacher at the school here said that there was a report in the newspaper, probably the China daily, that only those earning 12000 and above per month will have the deductions. I haven't seen it so can't confirm. Will ask again when I get the chance.

This is one link that mentions the cap

http://www.chinadaily.com.cn/bizchina/2011-11/04/content_14035387.htm


Last edited by lionheartuk on Thu Nov 10, 2011 5:58 am; edited 1 time in total
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dean_a_jones



Joined: 03 Jul 2009
Posts: 1151
Location: Wuhan, China

PostPosted: Thu Nov 10, 2011 3:44 am    Post subject: Reply with quote

I have seen the opposite, and that the collections will be capped at around that amount.

Quote:
The salary open to taxation will be capped at no more than three times the average salary in any given city, meaning that the ultimate burden will be lower for expats whose salaries exceed that that amount. http://www.forbes.com/sites/russellflannery/2011/09/10/china-hits-foreigners-and-their-employers-with-new-social-benefits-tax-2/


Talk about squeezing the little guy.
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choudoufu



Joined: 25 May 2010
Posts: 3325
Location: Mao-berry, PRC

PostPosted: Thu Nov 10, 2011 4:04 am    Post subject: Reply with quote

dean_a_jones wrote:
.....The salary open to taxation will be capped at no more than three times the average salary in any given city....



what is the average salary in your city? how will it be computed?
will it include all salaries? or only expat salaries? or would ft's be
taxed according to the average local educators' salaries? will the
base salaries include items such as housing allowances? will it be
re-calculated annually?

consider salaries in kunming for example. would this include only
salaries within the metro area (2 million people)? or would it also
include the additional 2 million farmers living within the kunming
city administrative region? what about the 70% of total income in
any area that goes unreported?
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tomhume89



Joined: 15 Feb 2011
Posts: 103
Location: Changsha

PostPosted: Sat Nov 12, 2011 7:41 am    Post subject: Reply with quote

Anyone seen a difference in their salaries yet? One paypacket so far and no change Very Happy
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igorG



Joined: 10 Aug 2010
Posts: 1473
Location: asia

PostPosted: Sat Nov 12, 2011 8:11 am    Post subject: Reply with quote

I have just got paid fully, no other taxes than before. And, I make a bit more monthly than that set limit here above. No, i am not happy but worried that on the exit out of this country i'll be turned back to re-pay my dues. Sure it's my money that is put in the system and then returned to me..just like an investment without any interest rate on. Really, i don't know and it seems few know, even in Beijing. Of course, this is a country that usually opens the doors wide to abuse.
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7969



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

PostPosted: Sat Nov 12, 2011 8:43 am    Post subject: Reply with quote

Stop worrying and start living Very Happy
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SahanRiddhi



Joined: 18 Sep 2010
Posts: 267

PostPosted: Sat Nov 12, 2011 8:15 pm    Post subject: Reply with quote

igorG wrote:
No, i am not happy but worried that on the exit out of this country i'll be turned back to re-pay my dues.


No need to worry about that, as there is no exit from China!
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jayjjasper



Joined: 27 Aug 2011
Posts: 344

PostPosted: Sun Nov 13, 2011 1:40 am    Post subject: Reply with quote

Just like the redundant playing of the Eagles' song, that still seems to gain popularity as it is repeated countless times in cloudy KTVs by willowy Chinese girls smelling of cheap perfume and stale smoke, you can check out but you can never leave.....
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JoeThePlumber



Joined: 11 Apr 2010
Posts: 90

PostPosted: Sun Nov 13, 2011 5:11 am    Post subject: Reply with quote

jayjjasper wrote:
Back Payments will be collected ...... maybe

I lol'd. Laughing
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jayjjasper



Joined: 27 Aug 2011
Posts: 344

PostPosted: Mon Nov 14, 2011 1:06 am    Post subject: Reply with quote

Quote:
jayjjasper wrote:
Back Payments will be collected ...... maybe

I lol'd. Laughing


I hope we can keep lol'ing
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