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bleucheese
Veejay
Joined: Aug 01, 2003
Posts: 1980
Location: this side of the tracks
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 Posted:
Sep 27, 2004 - 02:24 PM |
 
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| Post subject: US expat has no clue on taxes |
Ive been here 7 months now and my company is telling me they need to start filing for taxes for me. The first three months I was here I was on a tourist visa. Now I am on a Z.
I am being paid bt the US counterpart to the Chinese firm I am working for. (US dollars directly deposited into my US account).
I told my company I dont want my US salary to be taxed in China. I am already being taxed on it in the states. They tell me they cant lie, they need to report all of my income and then I will get a return later. Some have told me that what they should do is pay me a token local salary and tax me based on that. I dont really know what that means. I plan on being here until mid December. PLEASE HELP! |
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benkloepfer
PopStar
Joined: Sep 02, 2004
Posts: 1042
Status: Offline
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| Posted:
Oct 14, 2004 - 09:52 PM |
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If you're getting paid in the states then you shouldn't have to pay taxes in china. But if you're getting paid in china then its no problem as long as you earn less than 81,000 USD a year. There is a IRS tax form called 2555 Foreign Earned Income exclusion, where you have to report your income in China but won't have to pay anything as long as it isn't more than 81,000 USD. Maybe this would be the easiest solution, to quit getting paid in the states and make sure the company pays you the same amount in RMB while in Shanghai.
Depending on how the chinese tax brackets compare to the US then you might even pay less taxes in the end.
But don't listen to me; ask a professional. I'm just telling from my experience.
Good Luck,
Ben |
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