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原帖由 CPAMBA 於 2006-8-15 03:20 AM 發表
呢度唔知多唔多人做會計呢~~~~

都做過吓(三十年度)

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原帖由 wawab 於 2006-8-15 03:36 PM 發表
有冇人考左 aicpa 架?

考左HKSA算唔算？

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原帖由 fachai 於 2006-8-15 03:54 PM 發表

Finance 得唔得?!

點解唔得?

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原帖由 CPAMBA 於 2006-8-16 02:29 AM 發表



前輩你好~~~

你好

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原帖由 taurus 於 2006-8-25 11:32 AM 發表


Many thanks for the lively exchange of information about taxes on HK citizens working in China. I hope all parties have been benefitted through this communication. ...

What is said here about splitting the income between HK and PRC is the common practice but may not necessarily be fully compliant with the China Law.  You are not supposed to do that.  One thing legal though is the payment of housing allowance which is non taxable in China.  

People think that payment of 2 different wages in 2 passbooks and show one of them to PRC tax authorities is legal, but I can tell you it's not.  I have heard incident to employee being barred from leaving the country, while they requested a certificate from the HK Auditor confirming that no other payment has been made by the company to that particular employee.

China is starting to clamp down this kind of tax evasion.  How soon it will catch up on you, I don't know but there's always a risk.

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原帖由 taurus 於 2006-8-25 11:32 AM 發表


Many thanks for the lively exchange of information about taxes on HK citizens working in China. I hope all parties have been benefitted through this communication. ...

What is said here about splitting the income between HK and PRC is the common practice but may not necessarily be fully compliant with the China Law.  You are not supposed to do that.  One thing legal though is the payment of housing allowance which is non taxable in China.  

People think that payment of 2 different wages in 2 passbooks and show one of them to PRC tax authorities is legal, but I can tell you it's not.  I have heard incident to employee being barred from leaving the country, while they requested a certificate from the HK Auditor confirming that no other payment has been made by the company to that particular employee.

China is starting to clamp down this kind of tax evasion.  How soon it will catch up on you, I don't know but there's always a risk.

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原帖由 焦器勃勃 於 2006-8-27 01:07 PM 發表




My company wanna me to station in China for 5.5 days per week ( may be one month later ) and I suppose I will stay in China > 183 days per year. Moreover, I am not familier with China Ta ...

Sorry brother, I don't know the details apart from my earlier comments as I don't have to deal with it regularly.  However, I had some email exchanges with someone very experienced in this area and hopefully it might answer some of your questions on tax structure and social security contributions, etc.  Although the email is 3 years old and I am sure the tax bracket might have been changed, the basic principle should remain the same.  

Quote :

Sent: Tuesday, January 14, 2003 2:08 PM
Subject: Taxes

Dear xxxx

Please refer to our telephone conversation early this afternoon regarding taxes paid by xxxx representative office and individual income tax.

1.0) Taxes paid by xxxx representative office:

1.1) Business Tax (BT): BT is calculated based on the total expenses + capital expenditure incurred, i.e. (Expenses+ Capex) / 85% * 5%; e.g. Rep office expenses RMB1,000 and fixed assets purchased RMB500, then BT will be (RMB1,000 + RMB500) / 85% * 5% = RMB88.24

1.2) Enterprise Income Tax (EIT): EIT is also calculated based on the total expenses + capital expenditure incurred, i.e.(Expenses + Capex) / 85% * 10% * 33%; e.g. Using the above example, the EIT will be (RMB1,000 + RMB500) / 85% * 10% * 33% = RMB58.24

Note: Total expenses include expenses incurred in China and expenses incurred outside of China; e.g. expatriate salaries paid by head office outside of China for the Pep office are also included for tax purposes.

2.0) Individual Income Tax (IIT) and Four Funds

2.1) IIT: Taxable income * applicable rate - quick deduction = (Monthly income - RMB800 or RMB4,000) * applicable rate - quick deduction

Taxable income not over RMB500, Rate 5%, Speed deduction 0
Taxable income over RMB500 to RMB2,000 portion, Rate 10%, Quick deduction RMB25
Taxable income over RMB2,000 to RMB5,000 portion, Rate 15%, Quick deduction RMB125
Taxable income over RMB5,000 to RMB20,000 portion, Rate 20%, Quick deduction RMB375
Taxable income over RMB20,000 to RMB40,000 portion, Rate 25%, Quick deduction RMB1,375
Taxable income over RMB40,000 to RMB60,000 portion, Rate 30%, Quick deduction RMB3,375
Taxable income over RMB60,000 to RMB80,000 portion, Rate 35%, Quick deduction RMB6,375
Taxable income over RMB80,000 to RMB100,000 portion, Rate 40%, Quick deduction RMB10,375
Taxable income over RMB100,000 portion, Rate 45%, Quick deduction RMB15,375

e.g. Monthly salary for Mr. Local is RMB23,000, then his monthly IIT will be (RMB23,000 -RMB1,000)* 25% - RMB1,375 =RMB4,125
Monthly salary for Mr. Expatriate is RMB63,000, then his monthly IIT will be (RMB63,000 - RMB4,000)*35% -RMB3,375=RMB17,275

2.2) Four Funds:

Contributions to the Four Funds for local employees only are as follows:
Pension Fund: Employee 7%, Employer 22.5%
Medical Insurance: Employee 2%, Employer 12%
Unemployment Insurance: Employee 1%, Employer 2%
Housing Fund: Employee 7%, Employer 7%
Total Employee 17%, Total Employer 43.5%
However, contribution calculation is limited to RMB4,440 per month

The above seems a bit technical. I will therefore try to explain to you in more detail when we meet tomorrow.
Unquote

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原帖由 焦器勃勃 於 2006-8-28 01:57 PM 發表




Thanks for your prompt response.  

As I come from Engg field, there are certain " Accounting' s Professional  Terms" ( e.g. quick reduction ) make me a bi ...

Haha, "Quick Reduction" isn't something that we are familiar with anyway and I was first wondering what it was.  Anyway, this is what it meant.  Take the example of someone making RMB 63,000 and the marginal rate for that band is 35%.  So, that person should be paying 5% on the first bracket (first RMB500), 10% on the next bracket,...... up to 35% for income from RMB 60,000 to RMB 63,000.  By using 35% on the whole RMB63,000, they pre-calculate the difference between the 35% flat on RMB 63,000 and the actual tax based on 5%, 10%, 15%, 20%, 25%, & 30% up to the RMB60,000 and use that as a deduction.  This is the same as one calculating the tax in detail, with total tax bill equals RMB 17,275.  

Re brother Taurus's comments on adjusting the tax on annual basis, for all the tax laws that I have read, and unlike most other countries, nothing is said about tax on annual income.  So I presume tax is only chargeable based on monthly income and no adjustment for the annual income is stipulated in the tax law.  I might be wrong.

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原帖由 taurus 於 2006-9-2 02:49 PM 發表


In your quote, Brother CHANGMAO, as the taxable income of RMB(63,000-4,000) = RMB59,000 falls in Level 6 of the table of tax rates, the applicable tax rate is 30%, not 35%, and quick deduction, ...

You are quite right in that the rate should be 30% not 35% since the taxable income after the deduction for expat of RMB4,000 is only $59K.  The original email had it at 30% but when I looked at it, I thought it was in the 60K-80K band and changed it.

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原帖由 taurus 於 2006-9-3 08:45 AM 發表


Hi Brother Dejavu2003,

Thanks for your clarification but the details of calculation are not a big deal.

But from announced amendment of personal income tax law in PRC, it seems that past ...

I guess so, but people will keep on evading tax, thinking that it's legall, until .....

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原帖由 CHANGMAO 於 2006-9-3 08:51 AM 發表


Oh...your amendment mislead me

sorry guys.  I guess one should forget about the quick deduction method but calculate the tax step by step like we do in HK.

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原帖由 CHANGMAO 於 2006-9-3 09:05 AM 發表


Not exactly.
Unlike in Hong Kong, employee in China receive net income salary after tax every month, so these kind of calculation should be a duty of financial dept. personnels.

What I meant to say is, use the detailed calculation band by band -
first RMB XX      = 5% * RMB YYY
next RMB XXX   = 10% * RMB YYYY
next RMB XXX   = 15% * RMB YYYY

etc.  to arrive at the actual tax due.

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原帖由 CHANGMAO 於 2006-9-3 09:12 AM 發表


This calculation method apply in Hong Kong, but not in China.
In China, the tax rate of whole taxable income apply the same.
Like standard income rate in Hong Kong but in different layers.

No, China also uses the progressive rate method, just like we do.  

The so-called quick deduction, is a quick way of working out the tax due, but in the end, the tax liability calculated using this quick deduction method = the calculation using the progresive method.