Expatriate employees and consultants working in China
Source: Australian Tax Forum Journal Article
Published Date: 1 Dec 2014
China's demand for skilled workers, including from Australia, in their emerging economy is continuing. Australians working in China as employees or as consultants are likely to encounter many cultural but also legal differences, including different tax treatment of their remuneration.
Although the taxation of remuneration in China has some similarities with the Australian tax system, there are at least three differences that are worth noting. These differences relate to treatment of residency (referred to in China as domicile rules') which allow foreigners to pay Chinese tax only on Chinese-source income if the person is resident for less than 5 full years; the more favourable treatment of allowances and bonuses and the tendency to tax foreign workers more favourably than domestic workers.
This article considers those differences and notes the pressures that may mean that features of the Chinese personal tax system could change.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
- Published By: Ann O’Connell, Miranda Webster, Yue Mei Guo
- Published On:1 Dec 2014
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page