Income Tax in Shanghai, CHINA?

Question

Hi, does anyone know what the china rate/s of income tax are on any profit made by exporting goods from Shanghai, China?

Thanks!

Thanks for your help so far, but just to clarify, I'll actually be living in Shanghai, (I already have my Residency visa, as I am classed as a dependant of my father who is out there.)

Also, I wouldn't have an employer, I would be working for myself, in getting the goods (Clothing) and then shipping them to clients in the UK. I understand all of the UK Tax and Duty laws, it's just the Chinese taxation laws that I need informing of.

Thanks Again.

Answer 1

You don't pay tax when exporting goods from China. You pay the manufacture, they deal with any fees and taxes for transporting it our of the country.. You didnt say WHERE you were transporting it to though.. If to USA, then you need to tel me what itemes you are exporting as some require duty fees, and others do not.. Also matters on which port they arrive..

Now if you are talking about income tax, that is an entirely different ballgame.. Isnt engough bandwidth to write everything here.. Basically, if you are working in China, and earn a profit from any manner of exporting you are doing in your dealings with the USA or other country, then you are taxed on the amount above 4800 RMB at a starting rate of approx 18% and then there is a sliding scale according to the amount of money you earn..

Your employer likely wont know what that scale is or if they are underhanded, they will prentend to know and may try to cheat you by claiming taxes of 18% or more on the entire profit.. As a US Citizen, there is a treaty that says you are not taxed on income you earn in the first 90-days.. Its vague, so you really want to talk with a tax expoert on this one.

Good luck!

Answer 2

The corporate tax rate for foreign companies was recently raised to 25% to level the playing field with Chinese companies. Local authorities may grant tax breaks for foreign businesses to attract investment. You'll have to check with the Chinese authorities on how this will affect you. The English language Shangai Daily newspaper has a number of ads for tax advisors who should be able to help you.

Don't mess around with this in China, either. There are stories in the ex-pat press almost daily about the prosecution of tax evaders in China. The penalties are severe by Western standards as you'll see by reading the stories. It wasn't all that long ago that cheating the government was sometimes treated as a capital offense. It's not that bad now (for the moment anyway) but you don't want to mess with it.

Answer 3

I didn't live in Shanghai, so I never had to deal with the taxes there. I did live in Taiyuan in Shanxi province and i lived large in comparison the here in canada. I figure, with it being China and everything, that whatever they're going to tax you, you'll still have way more than enough to play around with providing you're making more than 8000 yuan a month.

Answer 4

Your information is previous. it relatively is now no longer genuine that the 1st $80 4,000 (approximately) of distant places earnings is excluded whilst distant places residency standards are met. The tax ruin now applies provided which you're making extra desirable than $84K of distant places earnings, and the ruin applies on the final earnings, no longer the 1st earnings. in spite of everything, your earnings would be taxed as the different earnings, yet you will be able to correctly be exempt from SS and Medicare. Your company will comprehend that. added info are in IRS Pub fifty 4, Tax instruction manual for US electorate and Resident extraterrestrial beings out of the country.

Answer 5

In China everything belongs to the state. Everything are given by the state and may be taken away anytime the state see fit.

In China there is nothing as private property and nothing as income tax.

China is a horrible place and it is a JOKE!!!

Lucky I live in the US.

Answer 6

Like any of us are really going to know or care?