Tax

How Tax Problem is coming up

As Trump enacted the tax cuts plan in a large scale, something just came up with me, I don’t want to talk about this news itself too much, in general, it would have a tendency to weaken the competence of economic in China, so the authority or the top brass have to do something for reacting.

What I want to talk a about is the tax burden in China, especially for individual, which is also most likely apply to visitors who is working here, I think lots of people know the statement or joke about tax which meaning is basically “there are two things you can never avoid, death and tax” , especially in developed or mature country such as Canada, and US, tax declaration is essential part of life, you do it or find a tax lawyer to help with it. Tax evasion is a real crime , and also you will be audited if you missed or had something wrong with your tax declaration.

But in China, all audit or supervision would be targeting the cooperation rather than the individual, actually we do have a tax law for individual to declare the tax when one’s Y2Y income exceed 120,000 RMB($ 18K), but as I know, for most of people in Beijing/Shanghai, they don’t do that declaration, especially the income from stock, renting and money in gray area .

For those who is hired by a company, whether their income below or exceed the $18k line, they don’t have to do anything for tax parts, the financial department would do that for you, which means you have already pay the tax when you get your payment, and declaration is the concern for the employer. But in some cases, if the company do not declare tax for you (it do happened in some small private sector), you should do that for yourself every year, but again, people don’t do that, and no legal consequence.

Actually the tax burden for private sector and individual is heavy in China, most private sector employer would evade tax in some way, otherwise they would definitely die, especially in manufacture industry. if there is something bright side for tax here, I think as a individual, you don’t have to bothering tax declaration and hiring a tax lawyer in most cases.

Multinational corporation in China is under strict supervision by government , so they follow the tax rule pretty good relatively, and will help all employee to declare tax every year, so if you are a relocated one to China, you are free for tax paper work at all, and if you are hired by individual such as a tutor job, in practice you don’t have to pay or declare tax without problem, but if you are working for a company, the real case would depends, you can talk about it with your employer to see if there are some ways to save some money for you for legal reason.

At last, I have to put a full disclaimer here again, all aforementioned is based on my personal observation, and no statistic meaning or implication, even in some case misunderstanding maybe, you should only take it for reference, and risking for your own action.

Add Comment...

By continuing to use the site, you agree to the use of cookies for your better browsing experience. more

The cookie settings on beijinghangout.com are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close