if I were to move to China (Shanghai) for a 2yr tour for business work, how does the taxes work out? If I am a contractor here in the US and pay around 33% of my income to the IRS, will I still need to pay this (even though I'm living in China), and will I need to pay any taxes for the Chinese gov't?
2007-10-15 05:14:52 · 1 answers · asked by traderbayz 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
I am a US citizen. Wondering if I need to pay both income taxes for the US and for China (since I will live in China for 2yrs).
2007-10-15 06:30:54 · update #1
Assuming that you're a US citizen, you still are subject to US taxation regardless of where you live. You may be eligible for the Foreign Earned Income Exclusion or you may take a credit against your US tax liability for any foreign income taxes paid.
I believe that if you are in China for 6 months or less you are not subject to their income tax. Longer than that and you will have to pay income taxes in China, back to your arrival. I've worked in China quite a bit but never for more than 6 months at a stretch.
2007-10-15 05:21:19 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋