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Foreigners working in China pay tax on their monthly wage minus 4,800 RMB; if your monthly wage is 10,000 RMB, a total of 5,200 RMB will be taxable.
Your non-taxable income is then taxed according to a progressive tax rate of 3 percent up to 45 percent, depending on your level of income. At the time of writing, the following rates applied for taxable incomes:
3 percent for less than 1,500 RMB
10 percent for 1,500 to 4,500 RMB
20 percent for 4,500 to 9,000 RMB
25 percent for 9,000 to 35,000 RMB
30 percent for 35,000 to 55,000 RMB
35 percent for 55,000 to 80,000 RMB
45 percent for more than 80,000 RMB
90 days, one year, five years
If the tax companies had left the rules there, it would have been too simple. How long you stay in China also affects how much tax you pay, and on what kind of income you are required to pay tax. Here’s a brief breakdown:
90 days
A foreigner who works in China for less than 90 days in a year (from January 1st to December 31st) only has to pay tax on income paid by Chinese companies for work done in China. In some cases, a bilateral agreement between your country and China can extend the 90 day period to 183 days.
90 days to one year
A foreigner resident in China from between 90 days to one year has to pay tax on all income earned within China, regardless of whether it is paid by foreign or Chinese companies.
One year to five years
Those resident in China for one year to five years pay tax on all income except that paid by foreign employers for work done outside of China.
More than five years
Those resident in China for more than five years may end up complying to the same tax rules as Chinese residents.
Paying even more tax
Depending upon the laws of your country, you may have to pay tax in your own country even while living and working in China. This situation might be avoided if your country has a bilateral tax agreement with China, or if your government does not require citizens living abroad to pay tax.
Foreigners working in China pay tax on their monthly wage minus 4,800 RMB; if your monthly wage is 10,000 RMB, a total of 5,200 RMB will be taxable.
Your non-taxable income is then taxed according to a progressive tax rate of 3 percent up to 45 percent, depending on your level of income. At the time of writing, the following rates applied for taxable incomes:
3 percent for less than 1,500 RMB
10 percent for 1,500 to 4,500 RMB
20 percent for 4,500 to 9,000 RMB
25 percent for 9,000 to 35,000 RMB
30 percent for 35,000 to 55,000 RMB
35 percent for 55,000 to 80,000 RMB
45 percent for more than 80,000 RMB
90 days, one year, five years
If the tax companies had left the rules there, it would have been too simple. How long you stay in China also affects how much tax you pay, and on what kind of income you are required to pay tax. Here’s a brief breakdown:
90 days
A foreigner who works in China for less than 90 days in a year (from January 1st to December 31st) only has to pay tax on income paid by Chinese companies for work done in China. In some cases, a bilateral agreement between your country and China can extend the 90 day period to 183 days.
90 days to one year
A foreigner resident in China from between 90 days to one year has to pay tax on all income earned within China, regardless of whether it is paid by foreign or Chinese companies.
One year to five years
Those resident in China for one year to five years pay tax on all income except that paid by foreign employers for work done outside of China.
More than five years
Those resident in China for more than five years may end up complying to the same tax rules as Chinese residents.
Paying even more tax
Depending upon the laws of your country, you may have to pay tax in your own country even while living and working in China. This situation might be avoided if your country has a bilateral tax agreement with China, or if your government does not require citizens living abroad to pay tax.
A friend in the USA to open an account for you, even a joint account, no longer is possible. There is an online bank that will allow you to do this called US Bank, but there have been some complaints about it.
Oh, and as far as I understand, paper checks are no longer issued, only electronic, but that was an announcement a while back, and I don’t know if that policy is still valid. You need to check that. But if you don’t have an account in the US, it would be worthwhile to see if you can get the IRS to send the money sent to a friend’s account, since the IRS charges for overseas transfers. The IRS has made it more difficult to contact them by any other means than by phone; I used to write them emails but that seems to have been discontinued. I wrote a paper letter, but I haven’t got an answer, but that might be because I live in a country which has a rather poor postal service. But they have always been helpful, if not always knowledgeable, on the phone. The numbers are listed on their website.
This is a very common problem. You will need a bank within or outside the United States that can cash a domestic American cheque for you. I personally mail US dollar cheques to my own domestic American bank account in the States, as this is the cheapest way to handle them. If you do not have a US domestic bank account, the offering from ACA is probably the easiest way to open a new one today.
Does anyone have experience in ordering and receiving either a credit card or debit card from HSBC in HK Especially how long (How many days?) it takes to get the card. I do have a business account there. I am planning a trip to HK and need plan my itinerary.
Note: Please only info. on HK HSBC and not Mainland China.
Thanks!
You don’t need to go there they’ll send it to Shanghai. I haven’t lived in HK for 14 years but still have all my cards up to date. You might need to go to a Shanghai branch to collect it for security reasons but that’s easier than going to HK.
I would check with your HSBC branch in HK first.
I bank with Hang Seng bank HK ( 2 separate business accounts which exist for over 5 years ).
Hangseng bank belongs to HSBC group and almost everything is same in each bank (down to the small electronic gizmo used to generate random passwords)
While my HK company agent was able to pick up the debit ATM cards for me 5 years ago, when I applied for real credit cards in April 2019 FOR THE FIRST TIME FOR THESE ACCOUNTS , I had to go there in person.
Then I had to go again to pick up the cards 3 weeks later.
At the time of the application, they mentioned that the cards could be ready in about 7 working days, but it was not the case, and it took more than 15 days to be available.
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