Job Discussion Forums

[kev7161]

Well, I know I've seen this topic, but after doing a half-assed search, I yield and will ask my questions here.

Chinese taxes - - a thread, a website link, etc. that I can be directed to?

Last September, upon my first pay, my school informed me that they would be taking out about 900rmb per month to cover taxes. "What?" I cried. "Taxes? I've never paid taxes before!" (which is true) "I'm going to have to rethink this position if I'm going to lose almost a thousand yuan a month." The school obliged me and shuffled around paperwork and took care of it (good school, gooooood school!).

Well, IF I stay next year, I won't be so lucky. Now I'm no longer dumb and naive and I'll be responsible. So, who can tell me the lowdown on taxes. I know the first, uhm, ??? is exempt and then after that it's, uhm, a certain % per thousand or, uhm, something . . . ??? I just don't know. Some help please.

[Roger]

In the past, www.dezshira.com used to be very informative on this matter; they may have changed their website name but you should still be able to access some database run by them; alternatively, you can informally enquire at one of their email addresses. Such queries are usually answered free of charge.

Last time they took up this issue was about two months ago in their printed newsletter.

[kev7161]

Thanks Roger. According to their website, the first 4000 is tax free, then everything beyond that is taxed at 20% less a "Quick Deduction Figure".

So, if I make 10,000 per month, then I need to take a 4000:

6000 x 20% - 375 = 825rmb per month.

Does that sound about right? (Roger or others in the know)

Does China have a yearly income tax thingie like we do in the US (April 15th)? Are there other deductions I could/should be taking (like transportation costs to and from school for example)?

[7969]

[Roger]

If their old websites says "4000 is tax-free", then it is a bit out of date; they actually printed an update (flyer) that clarified the Central Government's new policy: 4800 is now the threshold.

[kev7161]

Okay, so that's a little better.

(10,000 - 4800) x 20% - 375rmb = 665

That sounds a lot better!


Actually, I do have to worry about because I know the school won't manipulate their books a second year in a row to cover me. They'll need to legally take out the proper amount every month, but I just want to make sure they don't take too much.

(By the way, although not formal yet, it seems my school will want to keep me on next year with a 10% salary increase to boot! More taxes but I requested the raise to cover just that. Now, if I can get past my boredom . . . )

[clomper]

Roger,

Can you post the website where it was stated it's updated???

Claudine

[boxcarwilly]

I deduct my rent, amortized finders fee, and monthly apartment maintenance from my gross pay to arrive at my taxable income. Saves me about 2,500 RMB per year in taxes. Of course the landlord is supposed to report the rent as taxable income and those receipts are a little difficult to come by for me. I wonder if they pay taxes?

[boxcarwilly]

Oh, by the way, there is a greater than 50/50 chance that even though the school deducts taxes from your paycheck, all or only a part is actually reaching the tax authorities. There is a good chance that it goes into the pocket of the owner. I wonder if tax avoidence could be considered a national pastime here? If you are not getting the official receipt every month, your money is probably not going where you think it going.

[Roger]

Hello, Claudine,

I cannot supply a new link to that website; my info was gleaned from one of their monthly newsletters (published sometime last year).

[clomper]

hey guys,

here's the link.. was able to google it.

http://en.chinabroadcast.cn/2238/2006-2-9/[email protected]

http://www.china-embassy.org/eng/gyzg/t234297.htm

[tarzaninchina]

Seems to be only in effect in Beijing....