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Salaries and taxes

Specific discussions on relocating and moving to Shanghai. Please stay on topic!

Salaries and taxes

Postby MartinReynolds » Wed Jul 20, 2011 9:25 pm

What things can be counted as allowances and are they subject to tax?

Suggestions for allowances-
housing, transportation,

others?

Are they taxable?
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Re: Salaries and taxes

Postby jive_racing » Wed Jul 20, 2011 9:41 pm

i'm also trying to figure this out .. hr has been unhelpful
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Re: Salaries and taxes

Postby MartinReynolds » Wed Jul 20, 2011 10:29 pm

http://www.amcham-china.org.cn/amcham/u ... 094941.pdf

http://www.iiiiiiii.com/news/2011 ... comes.html

These maybe of help..

I think it is key to have the contract written well so you can then use this when doing the tax.. note tax is taken at source as well... look forward to other comments..
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Re: Salaries and taxes

Postby TaxBeagle » Wed Jul 20, 2011 10:49 pm

housing, relocation, food, travel (including home trips), laundry, language school fees, children's school fees etc. It's not really that different from many other countries.

The difficulty is a lack of consistency as it may depend on the quality of the relationship between your office and the tax official (welcome to China!). As a general rule, the tax official's are more willing to accept an allowance if the company has paid for the item rather than where the individual has paid and given the company the receipt so get your company to pay wherever possible.
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Re: Salaries and taxes

Postby MartinReynolds » Thu Jul 21, 2011 7:18 am

Thanks for the response.. will keep this in mind..
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