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Chinese tax paid receipt

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Old 2nd Apr 2014, 18:30
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Chinese tax paid receipt

Can anyone post or send me a copy of a Chinese tax paid receipt please? (black out the name/info)

I am having a real hard time getting that tax paid in China piece of paper from Hainan Airlines right now and they seem not to know what I'm talking about. Should be the same paper from any airlines in China for expats. Do you get it monthly/yearly?

I want to show them "this" is what I need.
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Old 4th Apr 2014, 09:45
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It would be very helpful if someone flying in China explain what kind of tax receipt you get from the airlines.
So far in India and Indonesia I got proper tax receipts from the airlines that were accepted by the Canada Revenue Agency, these countries have treats with Canada. And by the way the airlines paid around 33 % of taxes.
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Old 5th Apr 2014, 14:48
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Angry taxes in China

Good luck, trying to get a tax form in China is almost impossible and don't ask the "Why" question, you not allow to ask why in China.
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Old 5th Apr 2014, 23:47
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So if we don't get this tax certificat, what do you guys do for taxes?

Pay 45% income tax from your own salary to the Canadian government?
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Old 6th Apr 2014, 01:14
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The Chinese cheat on their taxes worse than anywhere else in the world. The tax receipt I usually receive shows they pay tax on about 15% of my actual income and that usually works out to be only several thousand $ they actually pay to the Chinese tax agency. The receipt is essentially worthless and would open you up to the Canadian tax agency for an immediate audit. Just report your income and report the meager tax the Chinese paid for you as a tax credit and work out the tax you owe. As always consult a reputable tax accountant for good advice.
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Old 7th Apr 2014, 02:03
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that would mean an out of my pocket 60,000$+ a year to pay in extra taxes. For me that would be a deal breaker.
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Old 7th Apr 2014, 05:26
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Angel

Tax Hainan: just tell Jenny or whoever is in charge what wording is acceptable for your needs and if you ask nicely you will get it; at least worked this way four years ago for me. Good luck
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Old 8th Apr 2014, 02:19
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Taxes

Hello martinYTR,


taxes are paid by the airline and should be also paid by your agency as stated in your / my contract.


Do the same as me, have a word with your agency and tell them, that they are legally responsible to provide you the income tax and salary certificates, as you have a contract with them and NOT with the airline.


Also, a nice (little threatening) letter from you tax authorities might help, clarifying what you need.


The foreign pilot office will for sure help you, if your agency in not competent in this matter and currently, though times are little tuff between the agencies and Hainan, they (Hainan) is trying their best to improve the cooperation, as the agencies feel of course threatened, that now pilots can join the group directly. That might be your advantage...


FCOM-5
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Old 8th Apr 2014, 06:55
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"taxes are paid by the airline and should be also paid by your agency as stated in your / my contract."


Your contract will specifically state all CHINESE taxes due will be paid by the airline for you. YOU are responsible for any foreign tax due on your income. Many foreign countries have no ExPat tax but Canada and the US do tax your foreign earned income. As always consult a professional tax accountant, don't rely on pilots for tax advice or you will surely be audited.
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Old 8th Apr 2014, 16:41
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"taxes are paid by the airline and should be also paid by your agency as stated in your / my contract."


Your contract will specifically state all CHINESE taxes due will be paid by the airline for you. YOU are responsible for any foreign tax due on your income. Many foreign countries have no ExPat tax but Canada and the US do tax your foreign earned income. As always consult a professional tax accountant, don't rely on pilots for tax advice or you will surely be audited.
The appropriate reference in this case is the Canada-China Income Tax Agreement 1986. Article 15 would be of particular interest and results in tax obligations that are very different than those that exist for US citizens. Using a tax accountant conversant with international tax treaties is an essential in this business.

ELAC


Agreement Between the Government of Canada and the Government of the People's Republic of China
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Old 9th Apr 2014, 01:56
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Article 15 is the key paragraph in that agreement between Canada and China.

The last line states very clearly ..

"Notwithstanding the provisions of paragraphs 1 and 2, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State, shall be taxable only in that Contracting State."

A tax receipt from the Chinese will make no difference in your taxes. CRA will not tax you one cent either way..

This agreement is presently 'under negotiation', as are many agreements. As such, that 'CRA tax exempt' status could change as it did a few years back with South Korea. But CRA will most likely give some notice so you can prepare for a possible change in your taxation liability. At that point, that receipt from the Chinese will be very, very, important.


.. Notreallyhere

Last edited by notreallyhere; 9th Apr 2014 at 14:55.
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Old 12th Apr 2014, 06:53
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Well thank you all!

Solution is article 15.3 as a couple of you mentioned. It was confirmed with someone that called CRA directly and they confirmed that article 15 applies for us.

You only need proof in your contract that you will operate aircrafts in international traffic. No need for exact tax amounts paid.

Martin
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