Job Discussion Forums

wailing_imam · Joined: 31 Mar 2006 Posts: 580 Location: Malaya

If I am waiting for the company to get me a Z visa and am working on an L visa, do I still have to pay tax or am I exempt until I have the correct documentation? Does the tax that I do pay in this period go to the company and NOT the government?

Question

Steppenwolf · Joined: 30 Jul 2006 Posts: 1769

What happens in your case can only be speculatively arrived at.

mike w · Posted: Sat Nov 25, 2006 5:28 pm Post subject:

You shouldn't be paying any tax, because on an 'L' visa you are working illegally, which means that your employer cannot register you as an employee.

cj750 · Joined: 27 Apr 2004 Posts: 3081 Location: Beijing

the obligation of tax transcends the legality of visa or work situations...
A hooker is still obligated to pay tax...
whether the school is paying is doubtful..even if you are legal...
like I have reported before ..Beanstalk (BIBS) didn't pay my tax until I went to the Tax office and reported them..and what a sh@t storm that brought forth...they had their finances so tied up that they had to hire another accountant to do the work..the accountant that ran the office has and continues to strip the foreigners of taxes supposedly paid and to purchase luxury items..such as autos...
The funny thing is if you look at the structure..you will find family members in organizations that will aid in the "shakedown"
In the case of Beanstalk..the admin. person in charge of the "housekeepers' was also the accountants mother..moneys that was suppose to be directed at the classroom was diverted..

The only way to tell if the school is actually paying your tax is to go to the local tax office and present your passport.....

clark.w.griswald · Joined: 06 Dec 2004 Posts: 2056

This is one of the difficulties to be faced when working illegally here. I understand that your intention is to be working legally which is great, but until that time you will be vulnerable. Not so much to unscrupulous companies, but more so to the pitfalls of being an illegal worker.

My advice would be to let this issue slide and instead concentrate on ensuring that your legal work documents come through as soon as possible. Once you are working legally you will find yourself in a much better position to be able to follow up on these sorts of things.

WordUp · Joined: 05 Jan 2006 Posts: 131

If they are in the process of obtaining your Z-visa (should not take more than 30 days) than you should pay tax if the amount is above 4800 RMB per month.

tofit · Joined: 22 Oct 2006 Posts: 47

I understand that your taxed for the amount above 4800 RMB , what is the tax rate for foreigners? Does it depend on where you are?

wailing_imam · Joined: 31 Mar 2006 Posts: 580 Location: Malaya

Yes, from what I understand you are taxed on what you make above 4800RMB. I think the tax rate is around 20. However, HOUSING and UTILITIES are NOT TAXABLE.

Would I be right in thinking that you can get your landlord to write out a receipt for 5000RMB each month (even if your rent is only 2000RMB) so that less of your salary is taxable?

Is this common practice amongst TEFLers in Shanghai?

Lobster · Posted: Mon Nov 27, 2006 2:06 pm Post subject:

In my case, in order to get the tax deduction for housing, I need to provide a receipt from the tax bureau. Because the rent is income for the landlord, they are supposed to be paying tax on it. In our case, we pay the tax ourselves and get the receipt. For a 2k/mo. apartment, the tax is just over 100 rmb, but it saves me about 400 in income tax so it's worth it. They wouldn't accept a handwritten receipt from my landlord. It's easy enough to gather taxi receipts to cover the transportation allowance.

RED

cj750 · Joined: 27 Apr 2004 Posts: 3081 Location: Beijing

taxes are based on a ban system starting with income over the deductible..and progressing in amount in ratio to your total taxable income...to be in the 20% bracket..you would have to make a good wage..more than most FTs make...

jeffinflorida · Posted: Thu Mar 15, 2007 12:49 pm Post subject: TAX RATES IN CHINA

I am having a discussion with my employer now about tax rates.

They really have no clue how much to take out.

I am working on an F visa which they sponsored...

I tried to search Dave's for the tax rate info but every time I search nothing ever happens ( just a blank screen).

Can someone provide this info or a link please.

upchuckles · Joined: 11 Jan 2007 Posts: 111

You're tax exempt for the first 90-days if you are a US Citizen.. By way of treaty..

I saw the rate table somewhere but I wasn't able to find it again, maybe you'll have better luck. Its something like 15% on only the amount above 4800 RMB. So if you make 5,000, you're only taxed on 200 RMB at 15% and its a sliding scale the more money you make..

http://z-visa.com China Visa Service for ESL Teachers

ymmv · Joined: 14 Jul 2004 Posts: 387

cheekygal · Joined: 04 Mar 2003 Posts: 1987 Location: China, Zhuhai

Actually, it is more like 16% in most of the places. And in some cases - companies - it might be more (depending on the type of business you do).

kev7161 · Joined: 06 Feb 2004 Posts: 5880 Location: Suzhou, China

The first year I worked for this school, I pled ignornance to tax and stirred up a little fuss about it. The school manipulated their books somehow and I received my full salary (10000rmb at the time). This year, I couldn't play dumb again, so they started yanking out tax every month from my 11000 salary. Now I take home just under 10,200 every month! They too were confused on how to take it out and had to do some major research. "We've never paid anyone this much money so we are unsure about how to do this," was what I was told.

I'm not quite sure how it works, but 11000-4800 is 6200 left over. 15% of that would be 930 rmb and they only take out 800 and change. I don't know the exact amount and I don't want to shuffle through the mess in my desk to find my receipts. So, it seems to be around 12 or 13%. I'm sure the amount withheld varies based on amount earned.