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Bounder
Joined: 06 Apr 2005
Posts: 21
Location: Nanjing, China
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 Posted: Wed Jun 08, 2005 2:27 am Post subject: Taxes on flight reimbursements |
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Hi. Has anyone heard of a new law or rule in China which states that reimbursements for cost of flight must now be taxed? My employer is stating that this is now the case. I wasn't taxed for this last year.
Thanks, Bounder |
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tw
Joined: 04 Jun 2005
Posts: 3898
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| Posted: Wed Jun 08, 2005 3:03 am Post subject: |
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| Who knows, could be one of the new laws that came into effect as of 2005. Ask your employer to give you the web site he/she saw this and I will look into it as I can read Chinese. Keep in mind that they MAY be SUPPOSED to but not necessarily mean MUST, i.e. they can find ways to help you skip the tax loophole. It can be done and it's easy. For all we know this is the employer's way of trying to scam money off you. |
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Babala
Joined: 28 Jan 2005
Posts: 1303
Location: Henan
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| Posted: Wed Jun 08, 2005 3:27 am Post subject: |
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| I am in Jiangsu also. I just received my airfare and it was not taxed. At my school, the rule is if you can present an airplane ticket (doesn't matter from how long ago or even if it's yours), your airfare will not be taxed. If you don't have the ticket, then you will be taxed. |
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millie
Joined: 29 Oct 2003
Posts: 413
Location: HK
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| Posted: Wed Jun 08, 2005 4:20 am Post subject: |
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Sounds like an obvious scam and complete nonsense to me.
Can the employer provide a chopped tax receipt?
It is not earned income but repayment of a direct cost of your employment. It is not a “fringe benefit”.
M |
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brsmith15
Joined: 12 May 2003
Posts: 1142
Location: New Hampshire USA
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| Posted: Wed Jun 08, 2005 6:35 am Post subject: |
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| They're hustling you. |
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Spiderman Too
Joined: 15 Aug 2004
Posts: 732
Location: Caught in my own web
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| Posted: Wed Jun 08, 2005 7:47 am Post subject: |
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At my current university they reimburse airfares upon submission of copies of receipts and tickets. No receipts and tickets, no payment. But with receipts and tickets full payment is made; no tax deduction.
The contract that I have signed for next term contains the clauses transcribed below. So, I'll have to pay tax if I don't submit receipts for both the annual airfare and the Spring Festival traveling allowance. Not a problem for me because I travel overseas twice each year regardless.
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2.4 After Party B�s completion of the teaching service portion of the fall semester, Party A will pay Party B 2000.00RMB Yuan as a traveling allowance.（See also 2.6）
2.5 When Party B completes the teaching portion of this one-year contract, Party A will pay 8000.00rmb Yuan as the equivalent of an end-of -contract international traveling allowance. (See also 2.6)
2.6 Party A shall pay Party B the expenses mentioned in section 2.4 and section 2.5 upon receipts provided by Party B. If Party B fails to do so, Party B is still entitled to receive the money in section 2.4, section 2.5 and the income tax is applicable.
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dalong
Joined: 11 May 2005
Posts: 116
Location: China
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| Posted: Wed Jun 08, 2005 10:01 am Post subject: |
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And I insist on the following clause in my contract:
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| Party B will take responsibility for his own financial affairs and Party A shall not, under any circumstances, deduct from Party B's contracted remuneration for any reason whatsoever. |
In fact, I have two appendices to my contract, both written by myself, full of clauses like this. Appendix 1 refers to general conditions, Appendix 2 to salary/remuneration. I update these appendices every year to cover any other potential loopholes I learn of either through my own experiences or the experiences of others.
Sorry if I sound harsh, but any FT who has been here a while only has themselves to blame if they run into simple problems like this (especially if they often read about the potential problems in forums like this). Get organised and cover your bases, otherwise you create problems for yourself and, at the same time, everyone else.
I'm not directing this at the OP or anyone else in particular, I'm just having my say. I'm tired of reading about all these attempted rip-offs and I get annoyed that our Chinese hosts just consider us as stupid laowai who are easy to cheat and even easier to make a buck (/dollar/yuan) from. But then, who can blame them - we allow it! |
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tony lee
Joined: 03 Apr 2004
Posts: 79
Location: Australia
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| Posted: Sun Jun 12, 2005 5:31 am Post subject: |
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[quote]In fact, I have two appendices to my contract, both written by myself, full of clauses like this. Appendix 1 refers to general conditions, Appendix 2 to salary/remuneration. I update these appendices every year to cover any other potential loopholes I learn of either through my own experiences or the experiences of others. [/quote]
Might be worth posting them here to give others an idea of what to look out for |
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