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Q: Can you work for a foreign company in China & get paid into an account abroad?
So for example, if I'm an expat living in China and I'm employed by a Chinese office of a UK registered company, could I have part of my salary paid into my Chinese account and part into a UK account? I know I would obviously need the agreement of my employer, but I'm asking if anyone knows of:
a) The legal implications/conditions, and
b) How tax would work out in this circumstance?
Thanks for any advice!
11 years 25 weeks ago in Visa & Legalities - China
I suppose it all depends on the company.
I work in china, and my company pay straight into my uk account.
If im running short of money, i ask them to pay me what i need in cash, and the rest into my account.
So do you pay tax in the UK, or China?
littlemick:
My salary was negotiated after tax, so my company pay all my tax
There is a fee for them transferring my wages into my account, and this works out £70 month for me.
Whatever you arrange with your company, make sure it is written into your contract, if it is not written, they can conveniently forget your conversation when it suits.u cant get paid...but u can transfer yr money from yr chinese account to your bank account in china...there is some minor deductions ...around 3%.
If u have a VISA card in your country..its easier.
It really depends on your company, the country you come from and several other factors.
If you are working for a Chinese employer in a Chinese company and you are hired as a direct (not consultant) employee, then you can only receive pay in the official payroll bank account setup by your employer.
If you are working as a consultant, or as an employee of an international company, then the rules can vary.
Technically, the rule of thumb is that if you are working for an international company and you are inside china for more than 180 days in any 365 day period, then your pay should be received in China and is subject to Chinese taxes.
However, a lot of companies play in the grey areas, which for the most part is fine and will cause your companies more headaches than they will you should their practices get officially questioned.
80% of my salary is paid into my U S account every month. If you for a large company it should not be a problem. (other than lazy HR people)
urbanina:
Thanks, so do you pay tax in CN or US? And does it affect your visa?
CharlieB:
Sorry for the late reply, I pay taxes in China. Any amount over 92,000 USD you must also pay tax on in the US. But you must claim all of the income on your US tax return. There is a treaty between the US and China about the taxes that exempts you from paying taxes to the US on any income taxed in China below the 92,000 USD threshold.
"Chinese office of a UK registered company" if i understand correct ... its not WOFE... that means your company doesnt submit accounts to chinese govt... ur company will not have an official bank account in company name in china...which means chinese govt dont know your salary... so u / ur company may no need pay tax if the salary is not coming to china ... theoratically should if u r on Z visa-Work permit... but since the company is not registered in China ... believe u r on business visa then? They could then easily pay your full or part salary to UK account... no problem 
Really depends on the company, but very few companies will do this. It's just extra work for them so unless your someone/something really important that they need most places wouldn't do this for you....that applies not only to China but to most companies across the globe.
As far as taxes in the UK, that would depend on UK tax laws and you'd have to check with them. You very could end up having to pay taxes in both countries though on the same paycheck so even if a company did this request for you it might not be finincally worth it. It might be cheaper just to transfer money on your own.
I work in China, for European company (registered in Europe, with no Chinese branch), and I'm paid to my European account.
Possible, legal, works well...
Some inconveniences however...
A little more visa-runs maybe, because I have to be on business visa, that are "shorter", and have limited entry number (usually 2-entry).
Some says, that after two 6-months visas - next one can be for a year, but it all depends on Chinese embassy in my homeland.
More convenient because I'm still in my "homeland's" retirement and healthcare systems.
Scandinavian:
re business visa. My expirience is that you can get the one year/multi entry business visa if you have an invitation from a sufficiently large Chinese company (you need to present documentation for this, from your inviter) alternatively when you get the business visa in your home country they are more lax with this requirement. Also you must apply at the PSB where your inviter is.
My first business visa, applied for back home, was 1 year multi entry, when it expired I tried PSB in Shenzhen, but as my inviter is a Hong Kong company with just a small sales office in Shenzhen, the PSB said I could only get 30 days one entry there, my passport was sent back to my employer, a secretary went to the Chinese visa office, and I got a new multi entry visa without problems. Having DHL and a secretary do the visa runs is also very easy. Just sit back and relax. It is however problematic as you as a foreigner in China must always have your ID on you.
All of you are lucky to work for foreign company to get well paid...
Congratulation to all of you...
I am the bad lucky one who is working for a HK company and get paid not enough ...
Hmm, sounds complicated.
It's a UK based company with a CN office. I will have a normal work permit and multiple entry visa.
Whitebear, my job will involve a lot of international travel so I need that multiple entry visa, unfortunately.
ExpatJohn your answers are always helpful, so thanks. I'm happy to pay tax in china and follow all the legal rules I should do, my issue is then how to move that remaining net salary out of CN (see below!)
AdamE, noted about transferring money myself.
In my current job I'm only allowed to pay around 50% of my salary back to the UK, and to do so I have to present my tax receipts in person at the bank (ICBC) every month. It's very time consuming. When I start my new job I want to make some more substantial savings in the UK, i.e. more than 50% of my salary. Besides, there are no restrictions on moving money from the UK to CN so I can choose what I want to spend and save, rather than being tied to <50%.
Any ideas how I can do this in a more streamlined way?
Is there a way to pay tax in CN but divert all the remaining money to the UK?
Thanks for your answers!
