Start-up Tax Situation

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Tight5er

Newbie

Joined: Aug 27, 2006
Posts: 1

Status: Offline

Posted: Aug 27, 2006 - 05:05 PM
Post subject: Start-up Tax Situation

I’ll be living in Shanghai, working for a US Based start-up out of its Representative Office in Shanghai. I’ll be paid into a US account, my salary is more of a living expenses covered situation and I'll will receive my “income” from bonuses. I've read some material concerning the bonus taxation by China, but on the US income tax and Chinese income tax side is my taxable income = living expenses stipend? Is there anyway to set it up so thru fa piaos to minimize the taxable?

horsemandk

StreetBeater

Joined: Mar 23, 2006
Posts: 2241
Location: Shanghai
Status: Offline

Posted: Aug 27, 2006 - 10:38 PM

Fa Piao can only be used if you register a company here in China and that costs a lot of money. You're going to pay taxes in China and the US!

Have a look at these links:
http://www.china-embassy.org/eng/xw/t208408.htm
http://www.novexcn.com/personal_icm_tax_99.html

But there is also a special agreement between the US and China and you need to contact your Embassy about this part.

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