Job Discussion Forums

[drjtrekker]

My buddy living in Zhuhai said the training school he works for has to tax him on bonuses and airfare, and that this is coming from the Gov't...and this was confirmed by the local authorities (they called them on this).

Has anyone heard of this? Is it just local to Zhuhai or Guandong? New trend in China?
After all, TIC (this is China).

[Lobster]

Airfare as an allowance is taxable. Airfare reimbursement is not. Bonuses are also taxable. This is why it's important to specify after-tax amounts in a contract.

Also beware of the conditions for airfare reimbursement. Many employer like to say they require a receipt and then tell you that the standard receipt you receive is not valid because it isn't chopped, triple-dated, written in blood etc.. They will also not accept your e-ticket or copy. This is their chance to get you at a vulnerable time, because you will be pressed to make your return arrangements.

Considering that few places actually cover the real costs of international airfare, it's best just to have the contract specify an out-of-tax amount with no receipts required. This is particularly important if you're going to stay in China and not return home.

RED

[wangdaning]

Any flight, bonus, or reimbursement should be paid in full. If there is a tax, the company or school should pay the tax. The way my employer does it is to find out how much tax and then pay the difference.

The contract says X amount, then they owe X amount. If the government wants money, it is still X amount.

[living&learning]

[dakelei]

"Return trip air fare" is one of the biggest hassles for foreign teachers in China. It's incredible how many tricks schools play to get out of actually paying it. My current contract has no provision for return airfare and pays a higher monthly salary instead and I'm just fine with that. I have taught here in China for seven years and have never once gotten the full amount promised for return airfare. One of the places to cheat me out of it was an actual public university, the sort of institution one would think wouldn't do such a thing. I battled the place for 6 or 7 months before it finally agreed to give me 5000 yuan, roughly half of what was promised.