Search found 16 matches

by inchinanow
Tue Oct 19, 2021 8:28 am
Forum: Forum 1. From Questions About ISS & Search to Anything and Everything About International Teaching
Topic: China New Tax Law
Replies: 25
Views: 34078

Re: China New Tax Law

No expats know what is going to happen in January, the only official sources of information are the government websites.

Any other rumors are just speculation unless its posted by the national government on their website. These changes where posted three years ago so not a sudden change overnight. The changes where implemented to make it easier for Chinese nationals to take well paid and responsible jobs from what appears to be an "only employing foreigners" situation.

I don't see the Chinese government changing or delaying the full implementation of the tax regulations just because some foreigners may be out of pocket.

The only confirmation that something is going to happen are changes to your income details on your individual tax app. This is in the form of none taxable income of children's tuition fees been added to your gross income. So I know someone with two kids at a rent-a-name school have 700k rmb added to their income. Apparently the tax department do know how much tuition a school charges and have added that to a teachers earnings,as yet markef untaxed.

No details on how this will be taxed. Will the tax bureau simply add up everything as one income stream and deduct tax according to regulations, this woul mean some teachers moving into the 45% tax band and therefore be subject to a 100% reduction in earnings! The tuition fees in total are greater than the money earnings of the teacher.

So the two biggest tax loopholes that seem to be going are tuition fees and housing allowances. We can still look forward to a tax free flight allowance, but we cant leave the country at the moment!