What Is The Tax Rate For Non Chinese Citizens In China? Will It Be Cheaper For Me To Pay Taxes In Us Or China?
Posted on | December 22, 2009 | 2 Comments
If you make 120000 or more RMB in China, you must pay taxes and the rate depends upon your income and the deductions you can take. it is not any where nearly as complicated as United States Dept of the Treasury IRC. The floor is approximately 4%.
As for your second question, it depends upon your income. If you make less than 8950 USD in the United States {for 2008}, it could be cheaper to pay United States taxes because it appears that you are not teaching in China. I am studying your question. However, you may want to fill out an IRS Form 2555 or Form 2555-EZ. If you are overseas for upwards of 330 days in 2008, you may qualify for an exemption or partial exemption from U.S. taxes. If you are not, you should fill out an IRS Form 1116 to get a credit for foreign taxes paid to knock down your United States income tax liability. You did not supply enough information for me to answer your question precisely. Please study IRS Publication 54. This will help. Good luck
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2 Responses to “What Is The Tax Rate For Non Chinese Citizens In China? Will It Be Cheaper For Me To Pay Taxes In Us Or China?”
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December 22nd, 2009 @ 8:15 am
Doesn’t matter which is cheaper. If you are a US citizen, you must report your world-wide income. If you are out of the country long enough, you may qualify to exclude your foreign income on Form 2555. Otherwise, you may be eligible for Foreign Tax Credit.
December 22nd, 2009 @ 3:05 pm
your first answer is correct