The place to ask China-related questions!
Beijing Shanghai Guangzhou Shenzhen Chengdu Xi'an Hangzhou Qingdao Dalian Suzhou Nanjing More Cities>>

Categories

Close
Welcome to eChinacities Answers! Please or register if you wish to join conversations or ask questions relating to life in China. For help, click here.
X

Verify email

Your verification code has been sent to:

Didn`t receive your code? Resend code

By continuing you agree to eChinacities's Privacy Policy .

Sign up with Google Sign up with Facebook
Sign up with Email Already have an account? .
Posts: 100

General

4
0
You must be a registered user to vote!
You must be a registered user to vote!
4

Q: Tax Question: Rent Exemption!!!

Hypothetical Tax Scenario

 

My salary is 12,000RMB which includes an 800RMB housing allowance. My rent is 2300RMB a month and my landlord provides me with a fapiao. Am I allowed a tax deduction for the entire 2300RMB? Is the school responsible for reducing my salary by this amount every month if I give them the fapiao? If the school tells me no, who should I send the fapiao to and how will I get the money back each month for the portion that is being taxed although is shouldn't? 

 

Thanks in advance for any help or advice that you may provide me.Wink

6 years 23 weeks ago in  Visa & Legalities - China

 
Answers (2)
Comments (1)
Posts: 3868

Emperor

0
0
You must be a registered user to vote!
You must be a registered user to vote!
0

If your contract only states 800 RMB rent allowance then that’s all can be deducted for tax. 

 

 

Tgiugh im sure your employer will fiddle the remaining 1500 off their tax bill...

Tami.X:

I heard that the rent allowance is taxable but the amount that you pay in rent to your landlord is deductible with a fapiao. 

 

Expatriate concessions

Are there any concessions made for expatriates in China?

Certain benefits-in-kind provided foreign national employees individuals are exempt from tax provided that the amounts are reasonable and substantiated by official invoices/receipts and other supporting documentation. These include the following:

  • rental of accommodation
  • meals and laundry
  • relocation
  • language training (for the employee only)
  • children’s education expenses in China
  • Home leave travel (up to two trips a year for the employee only).

https://home.kpmg.com/xx/en/home/insights/2011/12/china-income-tax.html

6 years 22 weeks ago
Report Abuse
Report Abuse
6 years 23 weeks ago
 
Posts: 2774

Emperor

0
0
You must be a registered user to vote!
You must be a registered user to vote!
0

If you check your salary breakdown, you will see that your rent allowance is tax exempt.

They may include other "allowances" in the tax exempt section. For example: you may see something like "teaching hours" 5400 and then a list of other stuff. This basically means they have to pay less themselves.

Since you will never lodge a tax return, it is futile to sweat it over the details. Just focus on the net amount each month.

Report Abuse
6 years 23 weeks ago
 
Know the answer ?
Please or register to post answer.

Report Abuse

Security Code: * Enter the text diplayed in the box below
Image CAPTCHA
Enter the characters shown in the image.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <img> <br> <p> <u>
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
  • Textual smileys will be replaced with graphical ones.

More information about formatting options

Forward Question

Answer of the DayMORE >>
A:  "... through ..."?  Only "through" comes to mind is "S
A: "... through ..."?  Only "through" comes to mind is "Shenzhen agent can connect you with an employer, who's authorized to hire waigouren ... and can sponsor Z visa." It's not like every 10th person you meet in Shenzhen's hood can sponsor work visa ...  The only way to change from student to labourer visa is just a regular way by: 1. Finding an employer, who'll apply for an Invitation letter; 2. Exit China and apply for Z visa in your home country's Chinese embassy; 3. Enter China in 30-days after Z visa was stamped into your travelling instrument ...As I am aware, you won't be able to switch to Working permit by remaining in China....,so make ready for a return to your home .... -- icnif77