Originally Posted by
Typhoonpilot
So the question is, are those gross numbers or net after taxes? If they are paying your taxes will they provide a tax receipt for you? You'll need that for filing your U.S. income taxes so that you can make a deduction for those foreign taxes paid.
Perhaps Koru can chime in on this as he would know a little more about how it should be done.
Typhoonpilot
What you need to do - always - is get good advice from a tax firm that deals with these issues. In the case of no receipts, there often are legal (i. e., perfectly acceptable to the IRS) ways around the problem - it shouldn't be a deal breaker. Have a good tax advisor on the hook before you leave the country and you'll stay out of trouble. I also would like to hear from some China contract types on this subject, but just on the level of background information / experience.
Anybody who takes tax advice from pilots is asking for it! 