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maxand
Joined: 04 Jan 2012
Posts: 318
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 Posted: Wed Feb 08, 2012 11:41 pm Post subject: new tax on foreign emplyees...any news? |
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| I have not heard any news about the new tax on foreign employees - 11% for the employee, 37% for employer. What is happening with this new tax? Any new developments? |
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The Great Wall of Whiner
Joined: 29 Jan 2003
Posts: 4946
Location: Blabbing
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| Posted: Wed Feb 08, 2012 11:47 pm Post subject: |
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| I heard it is being tackled after the new year, and Canadian Prime Minister Stephen Harper plans to bring it up while visiting China. |
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igorG
Joined: 10 Aug 2010
Posts: 1473
Location: asia
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| Posted: Thu Feb 09, 2012 4:09 am Post subject: |
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| The Canadian PM's visit may get interesting then. Perhaps, it'll be about the Alberta oil for this tax. |
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7969
Joined: 26 Mar 2003
Posts: 5782
Location: Coastal Guangdong
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| Posted: Thu Feb 09, 2012 4:47 am Post subject: |
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| The Great Wall of Whiner wrote: |
| I heard it is being tackled after the new year, and Canadian Prime Minister Stephen Harper plans to bring it up while visiting China. |
Source?
What Harper has been discussing is the following: trade relations, increasing business between the two countries, oil exports, increasing protection for Canadians investing in China , and more privately, human rights. That's the extent of it. Harper couldn't give a rats a$$ about the Chinese taxation system. Why would he be interested in discussing this? It's an internal Chinese matter and is of no concern to him or Canada.
PM lands investor protection deal, raises human rights in China |
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MisterButtkins
Joined: 03 Oct 2009
Posts: 1221
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| Posted: Thu Feb 09, 2012 6:06 am Post subject: |
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| seems like it kind of faded away and was forgotten about, as many said it would be |
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igorG
Joined: 10 Aug 2010
Posts: 1473
Location: asia
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| Posted: Thu Feb 09, 2012 6:39 am Post subject: |
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| Quote: |
Harper couldn't give a rats a$$ about the Chinese taxation system. Why would he be interested in discussing this? It's an internal Chinese matter and is of no concern to him or Canada.
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I wouldn't claim this with such a certainty. If Canadians are to protect their investments on mainland China, they'll have to worry about the local taxation system there. Moreover, if Canadian workers are to make the effort in the foreign country, they may not be able to contribute well enough to their homeland. Shouldn't it concern Canada/Canadians whether they are/will be able to pay their dues at home? But you may correct me if i am wrong.
I apologize for not having it linked  |
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7969
Joined: 26 Mar 2003
Posts: 5782
Location: Coastal Guangdong
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| Posted: Thu Feb 09, 2012 7:12 am Post subject: |
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| igorG wrote: |
| If Canadians are to protect their investments on mainland China, they'll have to worry about the local taxation system there. |
I don't think so. The people who work for Canadian owned companies in China are overwhelmingly Chinese (that's why the businesses are here to begin with - far cheaper labour costs) and the new tax on foreigners will have no bearing on them or the companies. Corporate taxes are another matter but that's not what this thread is about.
| igorG wrote: |
| Moreover, if Canadian workers are to make the effort in the foreign country, they may not be able to contribute well enough to their homeland. Shouldn't it concern Canada/Canadians whether they are/will be able to pay their dues at home? But you may correct me if i am wrong. I apologize for not having it linked. |
Which "dues" back home are Canadian expats in China supposed to remitting to Canada? I'm certainly not contributing anything to the Canadian govt or economy by being here. This new tax is a non-issue for the Prime Minister.
What is of concern to the Prime Minister is this:
| Quote: |
| Trade Minister Ed Fast said it would include a dispute-resolution mechanism that would provide third-party judgments in cases where an investor from one country feels unfairly treated in the other. |
In other words, a Foreign Investment Protection Agreement. |
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Zero
Joined: 08 Sep 2004
Posts: 1402
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| Posted: Thu Feb 09, 2012 2:26 pm Post subject: |
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I have some inside information that things are going to get pretty darn interesting regarding this tax. Get prepared.
One word: plastics. |
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kjkrause
Joined: 03 Nov 2005
Posts: 17
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| Posted: Fri Feb 10, 2012 7:07 am Post subject: social security tax |
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| has anybody contacted the Canadian tax dept regarding this tax ...half a dozen countries have signed a Totalization Agreement with China... on most websites it refer just to South Korea and Germany. But on one or two it refers to France and Canada also being signatories. Has anybody confirmed this if so what is required for a certificate of coverage---last years tax return with proof of RRSP, CCP deductions? |
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The Great Wall of Whiner
Joined: 29 Jan 2003
Posts: 4946
Location: Blabbing
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| Posted: Fri Feb 10, 2012 12:47 pm Post subject: |
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| 7969 wrote: |
I don't think so. The people who work for Canadian owned companies in China are overwhelmingly Chinese (that's why the businesses are here to begin with - far cheaper labour costs) and the new tax on foreigners will have no bearing on them or the companies. Corporate taxes are another matter but that's not what this thread is about. |
Source?
| Quote: |
Which "dues" back home are Canadian expats in China supposed to remitting to Canada? I'm certainly not contributing anything to the Canadian govt or economy by being here. This new tax is a non-issue for the Prime Minister. |
Source?
| Quote: |
What is of concern to the Prime Minister is this:
Trade Minister Ed Fast said it would include a dispute-resolution mechanism that would provide third-party judgments in cases where an investor from one country feels unfairly treated in the other.
In other words, a Foreign Investment Protection Agreement. |
Source? |
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hochhasd
Joined: 03 Jul 2008
Posts: 422
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| Posted: Fri Feb 10, 2012 12:58 pm Post subject: |
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| Zero wrote: |
I have some inside information that things are going to get pretty darn interesting regarding this tax. Get prepared.
One word: plastics. |
What do you mean by that? |
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The Great Wall of Whiner
Joined: 29 Jan 2003
Posts: 4946
Location: Blabbing
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| Posted: Fri Feb 10, 2012 1:06 pm Post subject: |
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| Quote: |
| the new tax on foreigners will have no bearing on them or the companies. |
Really?
Didn't you say somewhere earlier that it was the businesses and not the workers that would assume the lion's share of any tax hike?
At any rate, moot point because the Prime Minister just signed a treaty to ensure that it did not. So, now Canadian companies will have a distinct advantage over the rest of the world when investing in China.
| Quote: |
| The countries also announced the conclusion of talks on a pact aimed at shielding companies from discriminatory practices and enhancing mechanisms for settling disputes. |
Source: Business Week Magazine
http://www.businessweek.com/news/2012-02-10/harper-s-courting-of-china-wins-praise-from-canada-companies.html
| Quote: |
More specifically, the updated Tax Treaty will:
eliminate double taxation for individuals and companies doing business or earning income in the other country. |
Source: the Government of Canada
http://pm.gc.ca/eng/media.asp?id=4637
Meanwhile....
| Quote: |
| the new tax on foreigners will have no bearing on them or the companies. |
The Prime Minister didn't agree with you, and that is why he made sure that the treaty would include the elimination of double taxation for individuals and companies doing business or earning income in China.
This means that Canadians that earn income in China can pay either Chinese taxes or Canadian taxes-- their choice. Which is great news for me... maybe I'll opt out and pay the Canadian taxes. certainly I will benefit more. |
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Lobster
Joined: 20 Jun 2006
Posts: 2040
Location: Somewhere under the Sea
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| Posted: Fri Feb 10, 2012 3:36 pm Post subject: |
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You only pay Canadian taxes here if you are a Canadian citizen (or deemed resident) and are employed by a Canadian company. The tax treaty states that if you work for a Chinese company and pay taxes in China, you don't have to pay tax in Canada. Americans, however, must file a tax return on overseas earnings. For most Canadians working here as FTs, there will be no change as a result of these dialogues.
RED |
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twilothunder
Joined: 09 Dec 2011
Posts: 442
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| Posted: Fri Feb 10, 2012 7:49 pm Post subject: |
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| hochhasd wrote: |
| Zero wrote: |
I have some inside information that things are going to get pretty darn interesting regarding this tax. Get prepared.
One word: plastics. |
What do you mean by that? |
Ignore it. Pointless, attention seeking post. |
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Miles Smiles
Joined: 07 Jun 2010
Posts: 1294
Location: Heebee Jeebee
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| Posted: Fri Feb 10, 2012 7:51 pm Post subject: |
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| twilothunder wrote: |
| hochhasd wrote: |
| Zero wrote: |
I have some inside information that things are going to get pretty darn interesting regarding this tax. Get prepared.
One word: plastics. |
What do you mean by that? |
Ignore it. Pointless, attention seeking post. |
It's a reference to advice given to Dustin Hoffman in the movie "The Graduate". |
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