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.
1
0
You must be a registered user to vote!
You must be a registered user to vote!
1

Q: How can I avoid Chinese income tax?

I have been living/working in China for a Chinese owned manufacturing company.   I am paid in RMB by direct to deposit to my ABC account.   The company taxes 35% income tax from my salary.  Is there any way around this or to make it less or recoverable at the end of the year?   

4 years 15 weeks ago in  Money & Banking - Ningbo

 
Highest Voted
Posts: 1893

Emperor

6
6
You must be a registered user to vote!
You must be a registered user to vote!
0

Take your passport to the tax office nearest your place of employment and ask for a receipt (to see if, indeed, the full amount deducted is going to the tax office). There are several websites that have Chinese income tax calculators as well.

 

Please don't ask about dodging the system or for illegal advice...it makes us all look bad.

Report Abuse
4 years 15 weeks ago
 
Answers (8)
Comments (15)
Posts: 1893

Emperor

6
6
You must be a registered user to vote!
You must be a registered user to vote!
0

Take your passport to the tax office nearest your place of employment and ask for a receipt (to see if, indeed, the full amount deducted is going to the tax office). There are several websites that have Chinese income tax calculators as well.

 

Please don't ask about dodging the system or for illegal advice...it makes us all look bad.

Report Abuse
4 years 15 weeks ago
 
Posts: 1101

Governor

2
0
You must be a registered user to vote!
You must be a registered user to vote!
2

Brace yourself.

Report Abuse
4 years 15 weeks ago
 
Posts: 1308

Shifu

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

35% is way too much, definitely check the tax bureau as suggested and find out how much your company is keeping from your paycheck. 

Report Abuse
4 years 15 weeks ago
 
Posts: 3867

Emperor

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

Chinese income tax calculator:

 

http://www.sjgrand.cn/individual-income-tax-calculator

 

it opened the other day without VPN...now won't open. But lists the tax bands and calculates your tax if you can open it. 

Report Abuse
4 years 15 weeks ago
 
Posts: 3867

Emperor

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

If you're paying 35% tax then you should be earning 55000-80000/ month!

Report Abuse
4 years 15 weeks ago
 
Posts: 2535

Emperor

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

35% of your income goes to paying the Chinese government taxes?

 

What?!

 

That's insane dude... you need to talk to your embassy or something.

Report Abuse
4 years 15 weeks ago
 
1
2
You must be a registered user to vote!
You must be a registered user to vote!
1

How can I avoid Chinese income tax?

 

Easy - quit your job! Once you don't earn any income, you'll no longer have to pay income tax!!

 

Oh... so you do want some money? In that case, beg plead and grovel to have your pay reduced to about 4800RMb/month!

 

 

Sheesh - that was a no-brainer!

 

Glad I could help... Smile

Report Abuse
4 years 15 weeks ago
 
Posts: 696

Governor

2
2
You must be a registered user to vote!
You must be a registered user to vote!
0

INCOME TAX FOR FOREIGNERS IN CHINA
外国人在中国所得税(英文版)

Taxable Income = ( Total Income – Initial Deduction* – Tax Deductible Allowance** )
Tax Payable = ( Taxable Income x Tax Rate ) – Deduction

* Initial deduction is RMB 3,500 for PRC residents and 4,800 for foreigners.
** Tax Deductible Allowance includes rental, food and travel expenses, etc. as determined by your company’s Finance/HR department. You will need to get fapiao (发票) (official invoices) for these figures to qualify as your Tax Deductible Allowance.

Tax Examples
Example 1: Gross Salary of 10K RMB/month
Gross Salary = 10,000
Taxable Income = 10,000 – 4,800 = 5,200
Tax Rate = 20%
Deduction = 555
Tax = 5,200 * .2 –555 = 485 RMB

Example 2: Gross Salary of 10K RMB/month, Tax Deductible Allowance of 2,000 RMB/month
Gross Salary = 10,000
Tax Deductible Allowance = 2,000
Taxable Income = 10,000 – 4,800 – 2,000 = 3,200
Tax Rate = 10%
Deduction = 105
Tax = 3,200 * .1 –105 = 215 RMB

Example 3: Gross Salary of 30K RMB/month
Gross Salary = 30,000
Taxable Income = 30,000 – 4,800 = 25,200
Tax Rate = 25%
Deduction = 1,005
Tax = 25,200 * .25 –1,005 = 5,295 RMB

Example 4: Gross Salary of 30K RMB/month, Tax Deductible Allowance of 15K
Salary = 30,000
Tax Reimbursable Expenses = 15,000
Taxable Income = 30,000 – 4,800 –15,000 = 10,200
Tax Rate = 25%
Deduction = 1,005
Tax = 10,200 * .25 – 1,005 = 1,545 RMB

Naturally, the more your tax deductible allowance, the lower your taxable income and the lesser taxes you pay. So be sure you work out your sums thoroughly before negotiating your next raise or paycheck!

Report Abuse
4 years 14 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: Going to HK would be the best bet I reckon, especially if you were loo
A:Going to HK would be the best bet I reckon, especially if you were looking for a church wedding. Chinese weddings are pretty grim IMO - you go to a barren govt dept with souless officials and navigate red tape so some guy can give you a red stamp and a marriage book. You get expensive pictures taken of you both posing in places you'd never go to in everyday life that is somehow supposed to represent your wedding, then a while later it's off to a restaurant where a game show host kind of guy makes sure it's as tacky as possible while the guests eat as fast as they can so they can leave as soon as they finish eating and gave you money. Hell, I'd go to Thailand or the Philippines and get married in Paradise.   -- Stiggs