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anonymous
Q: If I work for an American company with a China entity, how are my taxes paid?
I would like to understand my tax situation for two potential situations:
What taxes I would need to pay if I am employed by an American company
with a China entity, as a US Citizen 1) working and living in China or 2)
working but not living in China, but Taiwan or Hong Kong?
I believe regardless I have to pay China taxes? What if my salary is
going to my US bank or a HK bank?
If my salary is below $95,100 USD, and I am 1) working and living in
China or 2) working but not living in China, but Taiwan or Hong Kong, am
I still exempt from paying US taxes (although I still report my taxes)?
I appreciate your assistance. Thanks!
12 years 25 weeks ago in Money & Banking - China
Since you will be working for a Chinese Registered Company. You are going to need a Work Permit and Residence Permit and you are liable for US taxes. The first $93,000 is tax exempt but you still have to file even if under that.
If you work in China (over 180 days), you need to pay 25-40% Chinese taxes here. That's the law! You can always receive one part of the salary in China, and another in the US. And only declare each portion on the respective countries for tax purposes. This is ILLEGAL and only a few companies will take the risk of pissing off the Chinese government to help an employee illegally evade taxes... (just saying)
Get yourself a good international tax guy to look over it. 
Good Luck!!
And just for fun...If you stay in China more than 5 years, they tax not just your salary, but all your global income.
Just the way the Tax Law works in China.
If you are working for an American company that has a WFOE (Wholly Foreign Owned Enterprise) in China, but you are not living or working in mainland China, then you should be exempt from China taxes because the China entity only covers mainland China in most cases.
However, you would still have to pay American taxes and that amount would depend on the tax treaty in place between the country you are working in and the US.
Other factors that will need to be considered are how long you will stay in the country you are working in during any 365 day period and how the money from the American company is paid to you.
As Benny said, you will probably want to consult a good international tax guy.
bennyfulltrack:
This he only can realize with a F-Visa as consultant with a max. Stay of 90 days. Then he will be seen here as a US citizen. And is only taxable in the US.
