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naturegirl321
Joined: 04 May 2003
Posts: 9041
Location: home sweet home
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 Posted: Sun Apr 15, 2012 11:32 am Post subject: Getting out of Chinese taxes for 3 years? |
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| I've been told that US and UK citizens can get out of Chinese taxes for the first three years. Anyone done this? What docs do you need? |
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creeper1
Joined: 24 Aug 2010
Posts: 481
Location: New Taipei City, Taiwan
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| Posted: Sun Apr 15, 2012 2:37 pm Post subject: |
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I'm from the UK
I'm pretty sure you heard wrong about that. There was a new tax introduced here recently and I am getting rental receipts for my apartment in order to reduce the burden of it (I guess my net pay appear less).
I think you will have to pay some tax here. |
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naturegirl321
Joined: 04 May 2003
Posts: 9041
Location: home sweet home
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| Posted: Sun Apr 15, 2012 11:11 pm Post subject: |
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| creeper1 wrote: |
I'm pretty sure you heard wrong about that. There was a new tax introduced here recently and I am getting rental receipts for my apartment in order to reduce the burden of it (I guess my net pay appear less).
I think you will have to pay some tax here. |
No, my new job told me that US and UK citizens can avoid taxes for 3 years. Some type of govt agreement. |
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Javelin of Radiance
Joined: 01 Jul 2009
Posts: 1187
Location: The West
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| Posted: Mon Apr 16, 2012 1:04 am Post subject: |
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| If they told you that then the logical next step is to ask them for something in print to back up what they said. A contract or appendix stating such or a regulation? If they say there's a government agreement ask them to produce it. |
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naturegirl321
Joined: 04 May 2003
Posts: 9041
Location: home sweet home
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| Posted: Mon Apr 16, 2012 1:16 am Post subject: |
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| Javelin of Radiance wrote: |
| If they told you that then the logical next step is to ask them for something in print to back up what they said. A contract or appendix stating such or a regulation? If they say there's a government agreement ask them to produce it. |
All I know is that I'm in contact with one guy there and HE's getting out of taxes, as an American who worked abroad before he went to work in China. |
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Javelin of Radiance
Joined: 01 Jul 2009
Posts: 1187
Location: The West
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| Posted: Mon Apr 16, 2012 1:21 am Post subject: |
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| That's nothing more than unreliable hearsay and there are a few reasons why he may not be paying taxes, none of them have anything to do with government agreements. If I'm in your shoes I'm asking the employer for verifiable proof that I won't pay taxes while working there. Otherwise expect to pay taxes. |
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shadowrider
Joined: 05 Feb 2012
Posts: 208
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| Posted: Mon Apr 16, 2012 1:24 am Post subject: |
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sure he is not referring to the $95K or so foreign-exclusion income? IRS 2555 form stuff? You still have to file. You won't come anywhere near that income in China. BUT, if you were in the US more than 35 days in on fiscal or calendar year you don't get it.
http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html
Last edited by shadowrider on Mon Apr 16, 2012 5:18 am; edited 1 time in total |
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naturegirl321
Joined: 04 May 2003
Posts: 9041
Location: home sweet home
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| Posted: Mon Apr 16, 2012 2:38 am Post subject: |
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| Javelin of Radiance wrote: |
| That's nothing more than unreliable hearsay and there are a few reasons why he may not be paying taxes, none of them have anything to do with government agreements. If I'm in your shoes I'm asking the employer for verifiable proof that I won't pay taxes while working there. Otherwise expect to pay taxes. |
The employer was the one who told me about it.
| shadowrider wrote: |
| sure he is not referring to the $95K or so foreign-excusion income? IRS 2555 form stuff? You still have to file. You won't come anywhere near that income in China. BUT, if you were in the US more than 35 days in on fiscal or calendar year you don't get it. |
Nope, because they said that UK citizens get out of it as well. 95K, I don't know. I think you could do it if you get a good job, have privates and do exams, or at least come close.
I'll be cutting it close next year with the 35 days though. |
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tomhume89
Joined: 15 Feb 2011
Posts: 103
Location: Changsha
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| Posted: Mon Apr 16, 2012 3:15 am Post subject: |
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| Never heard that, and certainly have never benefited from that! |
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mike w
Joined: 26 May 2004
Posts: 1071
Location: Beijing building site
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| Posted: Mon Apr 16, 2012 4:53 am Post subject: |
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| Your employer is pulling your strings. There is no such agreement between UK and China. He will not be able to produce any sort of authoritative documentation, because it doesn't exist. |
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shadowrider
Joined: 05 Feb 2012
Posts: 208
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| Posted: Mon Apr 16, 2012 5:20 am Post subject: |
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| naturegirl321 wrote: |
| Javelin of Radiance wrote: |
| That's nothing more than unreliable hearsay and there are a few reasons why he may not be paying taxes, none of them have anything to do with government agreements. If I'm in your shoes I'm asking the employer for verifiable proof that I won't pay taxes while working there. Otherwise expect to pay taxes. |
The employer was the one who told me about it.
| shadowrider wrote: |
| sure he is not referring to the $95K or so foreign-excusion income? IRS 2555 form stuff? You still have to file. You won't come anywhere near that income in China. BUT, if you were in the US more than 35 days in on fiscal or calendar year you don't get it. |
Nope, because they said that UK citizens get out of it as well. 95K, I don't know. I think you could do it if you get a good job, have privates and do exams, or at least come close.
only it you make 47.5K RMB+ a month here will you come close...
I'll be cutting it close next year with the 35 days though. |
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naturegirl321
Joined: 04 May 2003
Posts: 9041
Location: home sweet home
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isitts
Joined: 04 Jun 2010
Posts: 193
Location: Korea
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| Posted: Fri Apr 20, 2012 4:35 am Post subject: |
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Kinda weird that the site says nothing of the documents you need to provide to receive this benefit (like the residency certificate).
This is your new employer? Can you ask them more about it? You said you are in contact with someone there now? Maybe this is not a blanket arrangement for all US/UK expats in China but, rather, some kind of arrangement between China and this university (or others like it).
[edit]: Or maybe you do pay taxes and get reimbursed by the university? Schools in the JET Program did that if you didn't have a residency certificate.
Last edited by isitts on Tue Apr 24, 2012 1:05 pm; edited 1 time in total |
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isitts
Joined: 04 Jun 2010
Posts: 193
Location: Korea
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| Posted: Fri Apr 20, 2012 4:42 am Post subject: |
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Naw. She knows about the 2555. And there's no "3 year limit" for that.
Last edited by isitts on Fri Apr 20, 2012 7:34 am; edited 1 time in total |
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naturegirl321
Joined: 04 May 2003
Posts: 9041
Location: home sweet home
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| Posted: Fri Apr 20, 2012 5:04 am Post subject: |
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| isitts wrote: |
Naw. She knows about the 2555. And there's no "3 year limit" for that.
...and the link you gave is for small businesses.  |
Yep, not sure WHY it's in the small business section, but it is |
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