Job Discussion Forums

[igorG]

This week, i was about to ink a new employment contract, which required me to pay a tax unmentioned in the agreement. The party A rep negotiating with me told me the tax would be 10 % on the whole monthly salary instead of the part over 5,000. Are any of you paying taxes and taxes out of your full monthly salaries? And, do you get receipts for your taxes paid?

[shoulderdocca]

4500 is the taxable threshold, not 5000. Or is it 4800 now?

Either way, you have neglected to actually tell us what this so-called tax even is. Therefore, you aren't likely to receive much input here, since a phantom tax is suspect. Few, if any people get tax receipts. Those who do, likely get a single lump tax paid at the end of the year or employment.

You need to provide more details. If you don't have them, then you are burying yourself by not having the knowledge or inquiring.

[tianfuoe]

Income Taxation in PRC

Tax % Monthly Income (CNY)
5% 1 - 500
10% 501 - 2,000
15% 2,001 - 5,000
20% 5,001 - 20,000
25% 20,001 - 40,000
30% 40,001 - 60,000
35% 60,001 - 80,000
40% 80,001 - 100,000
45% 100,001 and above

The first 4,800 of your salary is exempt from taxes. After that, assume the amount remaining is all the income you receive and then use the chart above to calulate your taxes.

Example: Your salary is 10,000 a month. The first 4,800 is exempt. That leaves 5,200 as taxable income. Looking at this chart, your tax rate on the 5,200 is 20%. This tax table became effective as of April 2011.

Any money you get is taxable. If you receive a housing stipend, that is taxable income. If you receive an apartment as part of your contract, the "value" of that is not taxable. Regular salary, overtime, travel bonuses (unless you provide a receipt for the amount spend on travel over the amount of the bonus), food allowances, Xmas bonus is all taxable if they want it to be.

At my school, they only apply tax to the salary and overtime. Everything else, they "help" you have a receipt so they don't have to calculate taxes.

You can get a copy of this table at any Department of Taxation Office. Your school is required to give you a receipt for taxes paid each month. Whether they do or not depends on how much you insist on it.

[JamesD]

Minus the deductible:

Under 500 - 0
500-2000 -25
2000-5000 -125
5000-20000 -375
20000-40000 -1375
40000-60000 -3375
60000-80000 -6375
80000-100000 -10375
>100000 -15375

Edit: Clarification - Figure the tax first and then take the deductible. So take that 20% of 5,200 (1,040 RMB) then subtract 375 to get 665; that's your tax.

[igorG]

Thank you all for the posts.

Now, i've heard you can get the taxes you pay back. It is true? If so, how do you go about it really? Is it that i claim this with my country's government? And, what kind of slips or receipts from the employer do i need?