Most of the information I've seen says that teacers do not need to pay for income tax. But, one school said that I may have to pay for taxes and health insurance. Is this legitimate or a scam?
--------------------
It depends upon the school and the salary. Many private schools pay quite a bit more than universities and don't provide all the benefits that a university will provide. Additionally, a school is NOT required to pay taxes for their foreign teachers . . . it's merely a common benefit provided by many schools. Some schools may decide that any tax payment must be borne by the employee and not the employer. The tax law in China is fuzzy. They have set limits, but then they have tax-exempt income. First, the tax table: Table of Income Tax Rates in China for an Individual in 2009 Tax % Monthly Income (CNY) 5% 1 - 500 10% 501 - 2,000 15% 2,001 - 5,000 20% 5,001 - 20,000 25% 20,001 - 40,000 30% 40,001 - 60,000 35% 60,001 - 80,000 40% 80,001 - 100,000 45% 100,001 and above http://www.worldwide-tax.com/china/china… With a 5,000 yuan per month salary, under this table, you would have to pay 15% tax or 750 yuan. HOWEVER, you have an exempt allowance: * A standard monthly exemption of CNY 4,800 on income from a salary for a foreign resident, and CNY 2,000 for a Chinese resident. This means your monthly taxable income would be a mere 200 yuan, of which 5% (25 yuan) would be taxable. http://www.worldwide-tax.com/china/chi_e… You could go down to the tax office to pay this, but it would create more trouble than it is worth! Additionally, there are deductions as well, so in light of that, you probably wouldn't owe anything. I have paid taxes on income above and beyond my teacher's salary as I have additional income from published works. However, the publishing company usually takes the taxes from my salary, which makes things simple for me and my school as my school doesn't have to get involved. I know this is a long answer, but it should give you the background. Good luck.
Source
No comments:
Post a Comment