As an expat contractor who has been in Kunming since January, I have found that I need to pay Chinese tax. Does anyone know how I go about paying?
I have found nothing on the English language Internet about how to pay, only how much.
Could you clarify a bit? Were you sent out here on a contract from abroad?
There are basically three ways you can work legally in China:
1- full time employee at a company registered in China. They are responsible for all related taxes, including any to be withheld from salaries.
2- A contractor sent by a foreign company to provide service. In this case, a China-based company has purchased a service from a foreign company, and are paying that foreign company in their home country. You would be here on an F visa, and receiving your pay from the home company. You are not entitled to accept payment in China.
3- You are owner of a foreign invested company registered in China. Revenue, profit and payroll taxes must be filed regularly with local and national tax bureaus.
I'm guessing you're in category 2, because it wouldn't be your concern for 1, and you would definitely already know about it for 3. Your home office should be responsible for any taxes. I'm not sure what taxes Chinese law claims in this case. You probably don't have to worry about it.
If you don't fall under one of the above, then it is most likely an illegal working situation. You can always walk into the local tax bureau and report your revenues, and they will allow you to pay tax. But be warned, they may or may not report it to the police. What kind of visa are you working under?
Xiefei, Good information and good advice as best as I know it. I would add the problem of high income, over 120,000RMB a year and being deemed domiciled in China.
Finding tax forms for registering and filing can be a problem. You can try Beijing or Shanghai's tax offices online for examples and information you need to provide. The forms vary from location to location in design but the information is consistent. Biggest problem is Chinese government websites not being updated.
Chinese income taxes are due, filed and payed monthly so you can't wait until the end of the year.
The SAT (State Administration for Taxation) is developing a comprehensive database of all foreigners working and paying taxes. Part of it is a dossier of personal information that is very detailed. It is keyed on passport numbers, I was told. It is being used effectively in Guangdong but I am not sure which, if any other provinces or municipalities are now on the program. Those that work at two jobs must pay income tax for total income and the second job is at a 20% rate.
Like any other country, thinking the tax people aren't looking for your money is foolish. And yes Virginia, earn money in China means you must pay the erhu player.
