Hello,
Was wondering if someone could help me, I am in process of moving to Qingdoa for a new job, I am a uk citizen.
I will be living out there the job is permanent
The company I work for is uk based and they have a Chinese office.
They have just let me know that I will be paying 40% tax throught the Chinese government.
I will be paying IIT and SSI they said I can claim back SSI when I move back to the uk, but if I move before 2 years I can't claim it back.
Am now contemplating if it's worth my time to go due to the tax.
Is this correct?
Do you get to claim back any of the tax?
Income tax in shandong.
Craig_M
19 August 2016 13:46:00
1
Burchy
21 August 2016 15:11:47
59
Hi,
I've been an Expat for over 30 years.
It is of utmost importance for YOU to check out your contract conditions.
For Chine-UK income tax agreement, did you internet-check "UK-China reciprocal income tax agreement" => https://www.gov.uk/government/publicati … x-treaties ? I have not checked the UK Government attachments, but they should be relevant.
You could also check out "http://teflsearch.com/knowledgebase/china/tax-and-social-security".
If you are to survive as an Expat you need to check, check, check!
Today's internet makes it a real doddle.
Have you tried the British Consulate in Shanghai or the Embassy in Beijing? They can, sometimes actually be very helpful. Plus, of course, you should already have registered with them.
Normally a UK Expat goes overseas for his company on his base salary paid in the UK and UK tax free (due to being overseas for more than 12 months in a financial year) plus a daily living allowance (Per Diem), plus free food, plus free accommodation (including laundry), plus, of course, free flight Home Leave(s).
Your present contract looks like you are being reassigned to the China office - and the China office take over full responsibility and pay your salary - local tax deductible - and Social Security deduction. I assume they provide you with free Expat standard accommodation with all mod cons plus a daily Per Diem.
AND you need to check if you can send your savings to the UK at the end of assignment.
Maybe someone else can advise you on that; but my understanding is you can only send back what you have brought in - with full supporting documentation. UK Embassy should be good for that question.
All the best. Hope it works out
David
sambiotech
20 February 2019 11:15:54
7
I am wondering if someone could help me, I am in process of moving to Jinan for a new job, I am an Indian citizen.
I will be living out there for two years contract.
The university offered me pretax salary and offering z work visa.
My question is
Do I need to pay for tax for first year?
How much the tax will be?
Is there any possibility to claim back any of the tax?
Thanks for you suggestion.
VANNROX
20 February 2019 13:03:38
632
First of all...
In General
If you are in china under a z-visa your employer will automatically deduct the taxes out of your salary. The amount won't be too much. certainly not like what you would expect in the West. So don't worry about it. You will more than likely be pleasantly surprised.
For Americans only
If you are an American, you will ALSO need to pay American taxes after you pay your Chinese taxes. Thank you Obama. America is just about the only other nation that requires this. You will thus need to file taxes every April, and keep detailed records. Otherwise you run a great risk. The IRS will make an ASSUMPTION of what you made and charge you for withholding it and add interest on their assumptions. Yikes. You could easily become seriously in debt if you are not careful.
In addition, the IRS through the state department can seize your passport and prevent you form leaving the United States if you owe taxes. Again thank you Obama. For Americans, it is best to be poor and live off the grid, or else you risk imprisonment for not giving America reports on your salary, and how you spend your money.
For everyone else
I would strongly advise that if you make any kind of Western level salary in china, that you employ a knowledgeable tax accountant. I advise that you pay them what ever is necessary to make sure that you are in the clear in regards to your home countries. If you make a Chinese comparable salary, such as a teacher or translator or voice actor, then I would advise that you be careful and take note of your tax situation.
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