China Expat Forum - Taxes in China?

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From: Canada
7/20/2004 13:02    
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I'm just considering an offer to teach in Changzhou. One of my MANY questions is what are taxes in China? I'm being paid in RMB (which an earlier posting from Canadian Guy recommended against), but I have no idea how much I have to pay in taxes. Would appreciate either a straight answer or a website recommendation.

Also, love to hear from anybody with information on Changzhou.

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From: China
7/22/2004 05:30    
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Taxes depend on a LOT of different things.

What kind of job? If you're teaching in a university, taxes are paid by the university, so you don't have to worry about that (at least in regard to Chinese gov't). If you're working in a foreign company, you are responsible to pay taxes yourself (although some companies will also do this for you, or at least help).

How much do you make? The tax rate depends on your level of income.

Where are you from? Americans have to pay taxes in both China AND the U.S.; Canadians have an agreement that Canadian citizens working in China, who pay taxes there, don't have to pay taxes to Canada (and vice versa). Other countries have differing arrangements in this regard.

In general, you can probably expect to pay around 20-25% rate; is probably best to contact your country's chamber of commerce in China to get more specific info.

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From: Canada
7/22/2004 13:00    
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Hi Canadian Guy. Thanks for the response.

It's in the contract that I have to look after taxes. Their offer is 22,000 RMB/month, which I wasn't happy with, and now with the tax info you've given me, I think I will refuse. I know it's cheap to live there, but I'm still saving Canadian dollars to bring back to Canada, and that doesn't add up to much.

I also read another posting that China was thinking about putting laws into place that required companies to pay foreign nationals the same rate they'd get at home. That was from 2002, so I guess it didn't go through! This would be close to poverty level here with taxes at 25%.

Anyway, I'm concerned about retirement and losing opportunities here too, so all in all this is not looking like a good deal.

Where are you? What are you doing there (for 10 years?), and where in Canada are you from?

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From: Canada
7/29/2004 19:37    
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I too was considering a teaching position in China (Math/Physics in this case), and thought the pay was decent (comparatively) at 13000 RMB a month. May I ask what/where you were considering teaching for that much higher salary?

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