Schools in China and Taxes

[gengrant]

Just a question of curiosity for those who live/work in China:

Are most IS still paying all taxes for foreign staff (as most know the tax laws changed within the last year or so) or are more IS starting to ask staff to pay tax themselves?

I have seen some large pay increases in some IS in China. For example the foreign hire is offered upwards of $70k but then are asked to pay the taxes, which I've seen advertised at around 30%, which then translates to an after-tax income of $49k - still pretty decent by most China standards.

Anyone else seen this, heard of this, or is otherwise aware if this is a trend or an anomaly?

Thanks.

[Briz]

Taxes in Beijing range fromm low 20's to high teens unless it is paid by the school. Things like rent are not taxed. School tuition for students is also not taxes like it is in Europe. China is a good deal right now if you can pay to filter the air in your apartment and the school is filtered.

[gengrant]

Right. From my understanding the tax is only on income - if you provide official receipts on items like rent, etc., then you do not pay any tax on those items.

What I am wondering however is it the experience of those people who are in the know that more schools are asking FT to pay the tax on their income or is it still prevailing policy for the school to pay this tax? I've run into a couple of schools where they are offering higher salaries, but asking the teacher to pay the tax.

Just wondering...

[mysharona]

SAS still pays the tax, though I don't think Shanghai is collecting the new tax yet.

[tdaley26]

My school in Shanghai quoted a salary that was after tax.

[IAMBOG]

That's interesting, that quoted me gross.

[DeDee]

The school where I accepted a contract in Shanghai stated the salary and told me the approximate tax amount that would be taken out of that salary. They said they would be paying the taxes for me.

[tdaley26]

Iambog…. Just checked my most recent contract, and it stated the gross and net amount. Are we talking about the same school? I thought you had accepted a post elsewhere?

[tdaley26]

De Dee…… will we be neighbors? I am at YCIS Pudong.

[IAMBOG]

Yes, tdaley, we are talking about the same school. We got as far as having the salary written down, and talking about benefits.

Unfortunately, as you know, we ended up somewhere else.