Tax In China
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Location: Belgium
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Tax In China
Hi can anyone advise me about the tax situation in China, with these high salaries on offer who is paying the tax, The broker says net, but who is paying as it does not seem they can answer this, This is the last place in the world where I would want to be caught for tax evasion, Any advice guys
Thank you
Thank you
There are some weird and wonderfull ways of paying, or not paying, tax in China.
Directly employed by a Chinese company the company pays your tax and deletes it from your salary. In China tax is assessed monthly in various stages but it is the company's job to work that out.
As an indepndent contractor you bill you company, they accept it and give you a a copy of your tax invoice which you take to the tax office and pay. Then you go back to your company and they pay you the full amount. (Tax first, pay later) A couple of years ago they changed some people to three months so they had to wait three months, pay three months tax and then collect three months of bills.
If your company really needs you they will pay your tax seperately so leaving you with the salary that you were promised. (not often)
Most pilots are recruited through a contractor and the pay is filtered through them so giving you the net figure you were promised so if you did fly through an agency that is how you would be paid.
There are other systems but those are the ones I am familiar with.
I do not know what the overseas taxation rules are in Belgium but I know Americans have to keep their tax people happy.
Directly employed by a Chinese company the company pays your tax and deletes it from your salary. In China tax is assessed monthly in various stages but it is the company's job to work that out.
As an indepndent contractor you bill you company, they accept it and give you a a copy of your tax invoice which you take to the tax office and pay. Then you go back to your company and they pay you the full amount. (Tax first, pay later) A couple of years ago they changed some people to three months so they had to wait three months, pay three months tax and then collect three months of bills.
If your company really needs you they will pay your tax seperately so leaving you with the salary that you were promised. (not often)
Most pilots are recruited through a contractor and the pay is filtered through them so giving you the net figure you were promised so if you did fly through an agency that is how you would be paid.
There are other systems but those are the ones I am familiar with.
I do not know what the overseas taxation rules are in Belgium but I know Americans have to keep their tax people happy.
Thread Starter
Join Date: Jul 2008
Location: Belgium
Posts: 100
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Thanks FarEast Driver. I am told I will be paid NET by my broker but another guy who is working for them says he has never seen any tax certificates or anything and as far as he is aware they are not paying anything. I am really concerned as dont want to get into any trouble this way. ... I asked the broker and they said dont worry 
