Job Discussion Forums

[Gtomas]

Found two good articles on the new taxes which are supposed to come in force beginning next year (including retro-active payments going back to Oct. 15, 2011).

If these new laws are enforced, up to 40% of our wages now start going to government programs we will never use.

The first article explains the basics:
http://blogs.wsj.com/chinarealtime/2011/10/28/cough-it-up-a-guide-to-chinas-new-foreigner-social-security-tax
The second article answers the obvious objections foreigners would have to these new taxes:
http://ph.news.yahoo.com/china-media-slams-complaints-over-foreigners-tax-060319766.html

[Gtomas]

Frankly, I think these new taxes would make me stop teaching here. The new taxes also mean the employer will have to pay 10% of the employees wages into a program.

Strange... if you lose your job, you lose your visa, you need to leave. How would you ever collect unemployment insurance?

Does anyone think this will actually be enforced? What are you going to do about it?

[Cyberkada]

Any new taxes will be a definite deal killer as my contract salary here is NET of taxes. The Yahoo article was wrong at least in one respect - At least in the Netherlands, foreign experts had a 30% rule - exempting them from 30% of Dutch Taxes, but EU benefits such as insurance were real, not like the scam medical insurance most of us are provided here.

Oh well, back to the Philippines.

[Gtomas]

[Guerciotti]

[w.melon56]

I'm curious as to why these posters, who are so DESPERATE for money (clearly) would even, ever come to a foreign country, let alone China. Why? Certainly in America you could make much more money and not be in such a desperate situation that the equivalent of a hundred buck or more forces you to ditch the country and find another. I find it sort of interesting really in the big picture sort of way.

[Cyberkada]

A contract should be a contract. A few hundred bucks off an already low salary along with all the other bullsh we put up with on a daily basis here would make paying an additional 10% is a show-stopper.

Not all FTs are here teaching on retirement or pensions.

An additional example, while my contract stipulates that the company/ school would pay the apartment rent, I was told to pay the landlord 800+ RMB in miscellaneous fees. No accounting/ bill at all, I was expected just to pay for management and security fees - and given that day to pay it. I do understand consumables such as water, gas and power are my responsibility but miscellaneous fees should be part of the rent Another FT was told to pay 829 RMB for the same thing - THE DAY SHE ARRIVED.

[askiptochina]

Please explain how this will be enforced. The school has to be affected in some way compared to the way they are paying now.

[roadwalker]

Don't be surprised if 50 EFL teachers get 50 explanations of what the law means by their school FAOs. And don't be surprised if teachers A & B, earning the same salary, get a different monthly pay net of the new law's withholding. Even in the same department in the same school.

It will come down to an economic decision: is it worth teaching in China for the new amount? Will it be a new amount? One could certainly argue with their employer that it appears very unlikely that a foreign teacher would be able to collect their benefits either at retirement or before retirement. One could argue....and if they really want you at that school they might listen.

Unless it becomes somehow easier to retire in China, or possible to collect Chinese Social Security/other benefits from abroad, this move might put off a lot of teachers. I don't have any plans to retire in China, so unless those questions are answered to my satisfaction, I would likely leave if I couldn't make a reasonable net salary. I don't care whether it is fair or not, I care whether I receive a reasonable net salary.

[roadwalker]

[Cyberkada]

11% + 37% in new taxes might errr.... will... change the hiring landscape around here.

[Cyberkada]

[Cyberkada]

ABC News article... more in detail than most.
http://abcnews.go.com/Business/wireStory/foreigners-china-squeezed-pensions-taxes-15102055#.TuNYcUoipMM

[Miles Smiles]

From: http://ph.news.yahoo.com/china-media-slams-complaints-over-foreigners-tax-060319766.html

" '...Ample opportunities exist for foreign investors who are eyeing China for future growth. Rather than airing grievances, they should simply change their China strategy and share more knowledge with their Chinese partners," it wrote...' ".

Translation: The west has given us all of their technology, so why don't they tell us how to implement government policies too.

"...The age of ultra-low labour costs is nearing its end," the Xinhua report said...."

Translation: This is the dawn of extra-low labor costs.

" '...It is likely that what foreign companies care about most are China's 1 billion consumers and stable long-term growth prospects. Regardless of their motivation, it is in their best interest to change their mentality and embrace new conditions in order to avoid missing the boat... ' "


Translation: We want you to believe that China actually engages in fair free trade with the west. The west better become accustomed to getting the ever-shortening end of the stick, because pretty soon, that stick is going to be gone, and we're going to have our hands out asking for the west's help in getting us out of the mess we're creating for ourselves.



"...China is following international norms by including foreigners in its social security net, Xinhua said. Such commentaries are a reflection of government thinking rather than an official statement of policy..."


Translation: We don't know what we're doing.

[Gtomas]