| Oct 26, 2009 06:01 GMT-6 |
#1
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SALSAFONDER
- Points: 59
- Join Date: Jul 27, 2009
- Status:
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About your questions, i can give you anwser accordingly.
1) you do not need to pay tax for your rent and personal expenses occured in China,
2) There are some regulations about if you have to pay income tax in China or not.
Remuneration derived by a resident of a contracting state in respect of an employment exerised in the other contracting state should be taxable only in the first mentioned contracting state, if:
a) the recipient is present in that other contracting state for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned and:
b) the remuneration is paid by, on the behalf of, an employee who is not a resident of that other contracting state, and;
c) the remuneration is not borne by a permament establishment or a fixed base which the employer has in that other contracting state.
3) If you pay personal income tax in China, i can give you a formular to calculate actual tax you have to pay.
Where is employer is responsible for the IIT reliability
Net Income – Monthly Deduction – Quick Deduction
IIT = (Gross Taxable Income – Monthly Deduction) x Tax rate – Quick Deduction
When calculating taxable income for IIT purposes, a monthly
deduction of RMB4,800 is available to expatriates.
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| Oct 27, 2009 05:44 GMT-6 |
#2
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GUEST83243 |
Dear Gearbox:
Have you checked with your local accountant? I believe that there is a tax break for Americans working and staying overseas but the catch is that your stay in US for the year cannot exceed 30 days in total. I had encountered a problem a couple of months back when I tried to convert RMBs to US Dollars(please note that each province is different) in Shandong province, foreigners are NOT allowed to convert RMB to any foreign currencies. The banking system here is totally different than what we are used to.
Good Luck,
Jo.
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| Oct 27, 2009 23:34 GMT-6 |
#3
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FREESPIRIT
- Points: 2
- Join Date: Aug 26, 2009
- Status:
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I don't know about China, but Taxes are still voluntary for the United States (which is a foreign corporation). Although if you claim to be a US citizen then you are considered to be their chattel or slave. Personally I adhere to to the American concepts of self governing and freedom from being imposed upon but to each their own choice. all powers reserved, Colin
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| Nov 1, 2009 04:17 GMT-6 |
#4
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PYGRANT
- Points: 26
- Join Date: Nov 15, 2007
- Status:
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Are you a citizen of the US or China? If a citizen of China, you will have to pay taxes on your earnings whether the money is paid to you in the US or China. If a citizen of the US, you are still liable for taxes: However, if you are out of the US for 330 of the 365 days of the year, you qualify for the foreign income exclusion. That means that for this tax year (2009) you can exclude aprox. $90,000 from federal taxation (the amount is really $89,000 and some dollars, and is adjusted by the IRS annually b/c of inflation). Therefore, your best bet is to be paid in the US in US dollars, and transfer the money to a bank in China for your living expenses. If your income will be substantially more than $90,000, I would suggest that you get part of it paid as a housing expense, as there is also a foreign housing expense exclusion. Most states, b/c they begin with the federal AGI, will also exclude the same amount from income taxation. It's a little more complicated than that, but not substantially so (Turbo Tax allows you to use these exclusions). You can probably do your taxes yourself, but if that's intimidating, consult a tax attorney who does this stuff for a living. If you are in the US for more than 330 days, all of your income is subject to taxation. Send me a message if you need any more info.
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| Nov 10, 2009 05:58 GMT-6 |
#5
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GUESTDAVE |
I am an American with an opportunity to work in China for the next 4 years. My salary would be $11800/month. So how much of that would I actually get after taxes?
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