Taxes in China

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higgsboson
Posts: 150
Joined: Mon Jun 14, 2010 1:13 am

Taxes in China

Post by higgsboson »

I have three job offers in China in three completely different provinces.
I'm getting three different quotes on tax rate, each one different from what I had paid in taxes when I last taught in China.

I'm being quoted 14% at the low end and 25% at the high end.
As I recall, I was paying 18% - 20%

What is up with taxes in China?
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Response

Post by PsyGuy »

1) Different provinces have different local tax rates.
2) Your IS may have an agreement with the local taxing authority that reduces or alleviates your tax liability.
3) Your IS may be directly absorbing some of your tax costs as part of your package.
4) Your IS doesnt really know what your tax rate will be and is estimating.
5) Your IS plans to create a "kickback" on your salary by collecting higher taxes than you actually owe.
senator
Posts: 384
Joined: Tue Sep 19, 2006 1:53 am

Re: Taxes in China

Post by senator »

Yeah. I taught for years at an IS in Fujian Province. All the other expat business people were paying 10% or so and I was paying 24%. Whenever we asked why at a board meeting, the Chinese board members just got up and walked out. Meeting over.

AHHHHH, China.
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