Job Discussion Forums

[Canuck Gal]

My uni has just paid the travel and baggage allowance. Apparently these amounts were taxed. Is this normal procedure? Has anyone else had these amounts taxed?

[China.Pete]

Only your salary should be taxable, and only on the amount you earn over �4,800 a month (this amount may be adjusted from time to time). You should not be taxed on benefits such as your housing allowance, travel allowance, reimbursement for medical expenses, etc.

[ymmv]

Which travel allowance? The 2200 RMB per year to that many schools pay or the airline ticket reimbursement? If the latter, if you provided them with an airline ticket and baggage receipts from when you came to the job, or if you have booked a flight home and provide them with a copy of the ticket and receipt, it shouldn't be taxed. If this is an allowance in lieu of booking a flight home, it's considered a bonus for services and taxed at 20%.

Madge in accounting handles all this, not the FAO, and if you give her receipts, she won't withhold the tax.