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-   -   China Tax (https://www.pprune.org/south-asia-far-east/597644-china-tax.html)

MBA747 29th Jul 2017 04:34

China Tax
 
A lot of the Chinese airlines advertise that they pay the chinese tax. However do they provide documentation to state that they have?
Without the equivalent of a Group Certificate, the tax authorities of the home country will claim no tax has been paid and would require the individual to pay the full tax. Even though a Double Tax Agreement is in place.
So if there is no documentation indicating the amount of tax paid it would be assumed the salary was gross....liable for tax.

Big trap for the unwary. Hopefully someone can answer the question,

Thanks

MBA

safelife 29th Jul 2017 05:38

Some do, some don't.
Be sure to know for sure before joining.
But yes, mostly they pay your taxes and documents are provided.

FlyingUpsideDown 29th Jul 2017 07:46

I fly for a company in Beijing. Once a year I make a trip to the Tax office in Beijing with my passport. 5 minutes later they have printed off a tax paid certificate. I submit this with my tax return in Australia. No worries mate.

LH777 29th Jul 2017 23:32


Originally Posted by FlyingUpsideDown (Post 9845671)
I fly for a company in Beijing. Once a year I make a trip to the Tax office in Beijing with my passport. 5 minutes later they have printed off a tax paid certificate. I submit this with my tax return in Australia. No worries mate.

Same in Shanghai, no issues

RUMBEAR 30th Jul 2017 05:19

Can you tell us what a ball park figure would be for tax in China? ( as a percentage).

Icarus2001 30th Jul 2017 05:49


the tax authorities of the home country will claim no tax has been paid and would require the individual to pay the full tax.
Would depend completely upon which country is the HOME country and what your residency status is.

There are no "one size fits all" answers to this.


I fly for a company in Beijing. Once a year I make a trip to the Tax office in Beijing with my passport. 5 minutes later they have printed off a tax paid certificate. I submit this with my tax return in Australia. No worries mate.
I completely understand if you do not wish to answer on a "public" forum but I would be interested to know if the ATO wants more tax out of you than is paid in China? Also are you "non resident" for the ATO purposes?

LH777 30th Jul 2017 08:07


Originally Posted by RUMBEAR (Post 9846427)
Can you tell us what a ball park figure would be for tax in China? ( as a percentage).

https://www.ecovis.com/focus-china/i...-ground-rules/

If you are resident in Aussie for tax purposes then if you are flying INTERNATIONALLY from China then you are not subject to ATO tax.

drifter3 30th Jul 2017 08:07

Hi all,

From what I have seen, the average Chinese tax depends on your working pattern. For pilots working on 4/4 the actual tax paid is between 18-22% of your NET salary.
However, on the tax forms the Chinese taxable income is less than your net salary.
I assume they have allowances for travel, allowances, vat,etc.

Regarding the ATO.
If you are a "non resident"(refer to ATO definition) you aren't liable for any tax in Oz. This is from my personal experience and communication with the ATO.

All the best.

FlyingUpsideDown 31st Jul 2017 01:53


Originally Posted by Icarus2001 (Post 9846440)
Would depend completely upon which country is the HOME country and what your residency status is.

There are no "one size fits all" answers to this.

I completely understand if you do not wish to answer on a "public" forum but I would be interested to know if the ATO wants more tax out of you than is paid in China? Also are you "non resident" for the ATO purposes?

I am an Australian resident for taxation purposes because my family lives there, my kids go to school there, I have a mortgage there and I am on Medicare. My salary is about 24k AUD/month net. On the tax paid certificate, it is approximately 13k AUD/month that the airline pays in tax to the Chinese Government. I have a couple of investment properties that are negatively geared but so far, I have not had to pay any tax in Australia.

MBA747 31st Jul 2017 23:50

China Tax
 
Just heard on the grape vine that the salary is paid in 2 parts. One in Yuan and the other in US Dollars and that the tax paid by the airline to the Chinese authorities is based only on the Yuan.

Which means no tax is paid on the US dollar amount. Wouldn't one be liable for tax on the dollar amount in the home country.

So if one is an Australian resident, is the TOTAL salary which is supposedly net, converted to gross, then to Australian Dollars and the tax calculated on that amount? obviously getting credits for the tax paid. Or is it just the amount not taxed i.e. the USD converted to AUD and the tax paid on that amount?

Thanks


MBA

Wizofoz 1st Aug 2017 01:01

With which airline? That's not how it works with any of the major carriers.

My experience has, so far, been the same as FUDs.

MBA747 1st Aug 2017 01:35

China Tax
 
It's a bit disconcerting that some airlines split the salary in to two and some don't and some airlines with hold the licence so that one can not readily be employed by another airline.

How does one find out which airline does what?

Wizofoz 1st Aug 2017 04:11

By asking before you start employment. Agencies should have that information.

safelife 1st Aug 2017 06:19

And the license is always owned by the airline you apply with, as far as I know.

drifter3 1st Aug 2017 06:26

The Licence is owned by the airline. If you don't complete your contract it will be extremely difficult, if not impossible, to work for another Chinese airline.

If you complete your contract and want to move, the company will resist, but they should release your licence. Expect a 2-3 month break between contracts while all the paper work gets transferred and approved.

MBA747 1st Aug 2017 09:23

I digress. What time period would one be looking at, from the time one applies, to actually commencing employment?

Also does one need to have the Chinese ATPL before commencement, or is it obtained during the course?

doniedarko 1st Aug 2017 20:42

How long is a piece of string. From application to starting has varied from 6 months to 24 with some I have known. Usually as part of the interview / paperwork process an ATPL is obtained prior to commencing. Different airlines have slightly different processes.


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