Job Discussion Forums

Bethan · Joined: 10 Apr 2004 Posts: 23 Location: UK

Does anyone know what the rate of tax on pay is?

Do many of you get taxed on your pay?

pandasteak · Joined: 01 Apr 2004 Posts: 166

I think this is how it goes for foreign teachers (this is a cut and paste from an earlier post, so I'm not sure of the source):

Chinese law provides that the first 4,000 (four thousand) RMB of salary is exempt from taxation (Base Exemption). China income tax is due on any amount above this 4,000 RMB.

If the remainder is:
Below 500 RMB 5% minus 0
500 to 2,000 RMB 10% minus 25 RMB
2000 to 5,000 RMB 15% minus 125 RMB
5,000 to 20,000 RMB 20% minus 375 RMB

Bethan · Joined: 10 Apr 2004 Posts: 23 Location: UK

oh right, that's not too bad then is it. Why do some jobs say tax free salary - does this mean that the school is paying the tax or are they just breaking the law??

Roger · Joined: 19 Jan 2003 Posts: 9138

Have you tried the archives, mate?

Most of us don't pay tax, though it does kick in at the cut-off income of RMB 4000, and some say this includes airfare aZnd housing benefits.
Usually, government-owned enterprises don't tax their employees, but private schools and businesses do have to file tax declarations to the local authorities.
I once paid 25% on a side income of a RMB 150 an hour job which earned me anywhere from 3000 to 6000 a month.
You get a receipt and this receipt may be vital for you when crossing the border.

Guest · Posted: Wed Apr 21, 2004 9:57 pm Post subject:

I have heard that you do not pay tax if you earn under 4,000 Yuan per month. As I only get 3,500 per month, nobody has mentioned the word tax to me here at the School

cimarch · Joined: 12 Jun 2003 Posts: 358 Location: Dalian

I've noticed that almost all of the ads that say tax-free are ones that offer less than 4000 a month, but it looks sooooooo good on the ad they neglect to tell you that it's tax free because it's such a small amount, not because they're so nice or have special exemption... Wink

NateM · Joined: 19 Apr 2004 Posts: 358

If anyone here has had to pay taxes in China, I was wondering how there tax system works. Do they just take it directly out of your pay? Do you have to file a tax return at the end of the year? If so, how confusing is it in comparison to American taxes? I can't imagine filling out an American-Style tax form written in Chinese.

Roger · Joined: 19 Jan 2003 Posts: 9138

Your employer is supposed to withhold the tax and give you a receipt. The receipt must be stamped by the tax bureau.
Admitted it is a wee bit arbitrary as some localities don't require their employers to withhold taxes from foreigners' incomes.

garbotara · Joined: 15 Sep 2003 Posts: 529 Location: China

My school has never given a stamped receipt.They deduct the money and pocket it .That is what all the foreign teachers believe.Not one foreign teacher has received a tax paper at the school.This has lead to headaches for one teacher who could never send money home no matter how many times he begged for the paper.

NateM · Joined: 19 Apr 2004 Posts: 358

Interesting. Is it this way even with the good schools? Has anyone here ever recieved their tax statement from their employer?

Volodiya · Posted: Wed May 05, 2004 2:42 am Post subject: tax in china

I would like to add, and I hope some of you find this helpful, that many countries have entered into bilateral tax treaties with China that EXEMPT Very Happy

foreign resident teachers from payment of income tax for a period of years, typically two or three.

To get the details that would apply in your case, you could do a search, like- "tax treaties china [and name of your country of origin]".