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Q: How to avoid a large tax bill in china
I'm a Swiss citizen and about live and work in China for a German company. The average tax rate in Switzerland for a salary of 100'000 $US is about 10%. However in China the tax rate for this kind of salary is 35%!!! While I'm happy to pay taxes I certainly don't want to pay 35%. Any suggestions on how to avoid paying that much? Thank you for any helpful advice.
13 years 34 weeks ago in Business & Jobs - China
You should have pushed for that to be included in your contract with your company. Make them responsible for any and all work related expenses while you're in China (income tax included!).
Otherwise, and this is based on US tax law (no idea about Swiss tax law), all you can do is deduct the taxes paid to the Chinese gov't from the income you report in Switzerland. Of course, option 1 above is much more preferable.
All the Swiss I know only work in China for 6 months every year, then from Switzerland for 6 months. If you stay in China for more than 6 months, then you will unfortunately need to pay Chinese taxes.
If your salary is paid by bank transfer, then you need to paid the full amount. Or you talk to your employer to reduce the salary showed on the contract, and pay this part by transfer, the rest should be paid by cash or somehow.
