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Taxes in China

Posted: Fri Jun 10, 2016 5:41 pm
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?

Response

Posted: Sat Jun 11, 2016 9:26 pm
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.

Re: Taxes in China

Posted: Sun Jun 12, 2016 8:01 pm
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.