Job Discussion Forums

inwanzhou · Joined: 20 Mar 2003 Posts: 136

Hi guys,

Looks like I'm heading back to China this summer with a new gig in Shanghai. I've been hired to work at an international school where I'll be paid in international funds 80% and 20% in RMB. As part of the contract I'll recieve a nice income minus the taxes. THis of course is different from my last experience where it was paid in cash without taxes and I didn't claim it on my Canadian taxes when I returned--as a matter of fact I just didn't claim any income. It was too little, I was only paid roughly 4500rmb a month. However, this time around it's pretty much the same income as I am making here in Canada with a school board. Different circumstance I suppose.

My question is this: for those who have had experience around pay and taxes in China, how much does one pay in taxes here in China. If you get the tax reciept can you claim it when you return to Canada? I know, why would anyone do this?? Well because I get a bit of free money from the gov't of Canada being a mom and all and really who doesn't like to get free money for being a mom!

On a more serious note though--as a good citizen I want to be able to access some of my stuff--ie educational access for my daughter via e-learning and I would feel pretty crappy using the stuff if I wasn't at least contributing. It's a moral and ethical issue for me really. I don't want to hear from those with the "who cares screw the government" people because I'm not about that.

Thank you in advance.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

A foreigner is not taxed on the first 4,800. (This was increased last Jan 1st). The school has the legal responsibnility to give you a tax receipt. It is needed if you legally change money at the bank of China. I make 4,800, so am not taxed, and my school refuses to give me the tax receipt because I don't pay taxes, thus it isn't needed. If I pushed them hard enough they would give it to me, but it's not worth it

inwanzhou · Joined: 20 Mar 2003 Posts: 136

I will be making much more that 4800 rmb a month. I'll be making close to 2500USD a month which 20% of it will be converted into rmb.....so what is the income tax rate one would have to pay--which I know my employer will pay on my behalf, it being an international school, and what are other xpat experiences with respect to returning to Canada and the tax responsibilities? DOes China and Canada have a tax agreement where if I pay so much here in China I can claim it in Canada and pay what is left owing? Anyone out there have experience with this?

Thanx