Income Tax for Foriegners


To begin this, I'll sum up that if you are not necessarily interested in my own personal outlooks and views on things this is what you would like to see and get assitance with if you are an Expat in China who has no idea of how taxation works.

http://www.china-briefing.com/news/2015/01/28/paying-foreign-employees-individual-income-tax.html

For those of you who appreciate and looked forward to my "Feihua", here it is.

I have been in China for four years now, just when I think I understand how things work-I'm wrong (or it changed). Regardless of what it is when you read this, it is this for the time being. Realistically it is not as bad as one may think it to be when comparing the tax process from here to other places such as in the Middle East. Again, the view is from an outsider of that culture and expat community, however it still seems to be a relatively  conversed and ranging topic of positives and negatives.

The tax system in China has its benefits as well as its drawbacks. Basically everything you make in a month is how you are taxed- it does not necessarily injure your net income if you make a bit more one month than you do another-and the gap between each tier of income is well adjusted to alert the government of ill gotten funds.

When you pay your taxes to the Chinese government, the Government from your native country will still collect a minimal amount of taxes from you in the sense that, well you don't save much but the taxes you pay in the other country you may be in living in at the time as CREDIT, they still charge you for tax and require you to file. The only way to avoid this is by giving up residency in Canada which is not quite as romantic and adventurous as it sounds. This can also throw you in a bind (especially if you have property, license and other government related ties to the taxes in Canada.

You can actually check out an interview with a tax expert with the globe and mail from 2014 here at this link-a lot of jargon and a bit of long winded explanation with small bits of advice scattered through but and easy and short read with a clear answer if you know how to scan through infotexts.

https://www.theglobeandmail.com/globe-investor/personal-finance/taxes/canadians-living-abroad-may-be-surprised-to-learn-they-owe-ottawa-taxes/article17592602/

All the best,

CB

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