Many foreigners are working in China as teachers, chefs, coaches, live streamers, technicians, doctors, and translators etc., in many fields. So, most of you will pay taxes. Do you know you can get taxes refunded in China? How much money can you get? What are the requirements and procedures? To refund taxes, confirm that you have paid taxes! If you did not pay taxes, there is no way to refund them.
Do I have to pay taxes working in China?
Yes, you do. Most individuals, who have a domicile in China, or no domicile but have resided in China for more than 183 days in total in a tax year, and the monthly income is over 5000 RMB, must pay tax.
How much tax do I have to pay working in China?
In China, if your monthly income is 5000 CNY or more, you must pay tax. The more you earn, the more tax you pay. There is a formula of taxes:
A= monthly salary (before tax)
B= monthly salary (after tax)
C=A-5000 (starting point)
D=C*tax rate-deduction (tax)
B=A- D
e.g.: Income 20000 CNY
A=20000
B=18410
C=20000-5000=15000
D=(15000*20%-1410)=1590
B=A-D=18410
What types of income require taxes?
(1) wages and salaries income.
(2) remuneration for personal services income.
(3) authors remuneration income.
(4) royalties income.
(5) business operation's income.
(6) interest, dividends, and bonuses income.
(7) property lease income.
(8) property transactions income.
(9) contingent income.
What are tax refund conditions?
1. apartment lease load.
2. apartment rent.
3. parents over 60 years old.
4. children education costs.
5. self-education expenses.
6. healthcare costs for major diseases.
How much tax can I refund?
Every city has its own standards of the apartment lease, and everyone’s salary is different. If you meet more conditions mentioned above, and pay more tax, you will get more refunded. It will be decided by the local taxation department. By our experience, most people get 1000-5000 RMB annually.
When can I refund tax?
You can refund tax between 1st March to 30th June every year.
Are tax refund and social security refund the same thing?
The tax refund and social insurance refund are two different. Do not confuse them. You can do the tax refund and social security refund simultaneously. You need to refund the tax in the set time every year, but only refund the social security refund once when you decide to leave China.
How do I refund tax?
You will fill in forms in Chinese and visit several offices to submit required documents that apply to the detailed policies. You can of course contact us for help to make your applications much easier. We will instruct you until you get a tax refund. Click to submit tax refund request.
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