Hello
I have a query about the Chinese tax rules.

My wife and I are British, working for US companies paid from the UK. We are moving to Shanghai soon because of my wife's work - I will be the accompanying spouse. I will continue working from home in Shanghai, travelling to offices abroad when necessary, occaissionally working in my company's Beijing office for a day or two at a time. We are likely to stay in Shanghai for 5 years or more.

I'd like to know if the CIIT rules mean that I will also be liable for Chinese income tax - especially after a five year period has passed? Can I offset UK income tax against any Chinese tax liability? I'm not trying to avoid paying tax, just don't want to pay twice.

I realise that this should properly be asked of a tax accountant, but if anyone is in a similar situation I'd be grateful to hear of their experiences.

thanks
David

Why would still pay taxes in the UK?? When I left England I opened up an account with the Isle of Man branch of my Bank and therefore only have to deal with Chinese taxes. Can your company not pay you gross to an offshore location?

You probably need to get a tax accountant involved to get the real scoop. Its a moving target. Then there is what the rules say and what the actual practice is. Basically, you are definitely liable for anything paid to you in China. If its paid off shore, it may be another issue. You should be paid at least a part of your salary in China and pay some kind of tax in China just to keep everyone happy. However, there are definite issues that only someone who is deals with this day to day will be up on, so get real assistance by someone who knows for sure.

If you are not trying to AVOID tax and stay LEGAL.
Then, being in China for more than 3 months (again this period may have been revised!) will make you liable for overseas income, especially if its for work done in China.
Your Employer in Chian must report you as an employee here, which in turns get you into the local / PRC tax system. Unless, of course, your employer is also operating illigally here; in which case you are most likely going to be in very grey areas! Unfortunately, many UK firms do operate illegally here; or rather they pretend they are off-shore! Until the tax-man knocks on his door, during office hours and doing business - Ohoops!!!
China / Shanghai is still abit wild-west mentality.

Thanks for the replies. So if I do no work for the Chinese offices of my employer then maybe I don't need to be reported as an employee in China, and the Chinese tax question doesn't arise - at least in the short term (< 5 years). I'd best talk to a Chinese tax aware accountant in any case though.

thanks
cheerio
David