BonesF15

CRJ Captain - Expat Assignment in Beijing, China
Posted: 6/24/2007 12:32:00 AM
Immediate need for CRJ-200 Captains We are pleased to announce immediate openings for CRJ Captains for ex-pat assignments in Beijing, China.
When comparing salary and benefits with other opportunities in the market place, please keep in mind the following points:
--The average gross salary before tax & housing costs for a top level professional living in Beijing is $2,230USD per month v.s. your net of $5,700USD per month.
--You can buy a Chinese meal for about $0.80 to $1.30USD.
--Ordinary clothes cost between $3 and $7USD.
--The average rental price for a 3 bedroom apartment in Beijing is $302USD per month v.s. your housing allowance of $1200USD/month. A sample Western style fully furnished apartment near the airport in an ex-pat community can be seen at this site: http://www.torent.cn/unit/BJU1000080.html
--The approximate equivalent salary in the U.S. taking into account tax free status, housing, and cash benefits would be around $130,000USD/year.
Your out of pocket living expenses will be only for food and entertainment.
In short, you can experience an adventure in China, enjoy living at the top of the economy, and put a substantial amount in savings each month.
In the interest of full disclosure, please keep fully in mind that this adventure is not for everyone.
While Beijing is one of the great and historic cities of the world, it is located in a foreign country with a different culture and language. The people are friendly and very kind to Westerners. Please find details and requirements for the job below. Flying for: The Joint Venture between Shenzhen Airlines and Mesa Airlines (tentatively known as Kun Peng Airlines) Minimum requirements: • 500 hours PIC on CRJ-200, 700 or 900 • 3000 hours total time • First Class medical Domicile: Beijing, China (Working VISA provided by WASINC - any nationality can apply) Base pay: $5700 per month (net) Minimum Guarantee: 80 hours Contract Term: First contract: 2 years. Subsequent contracts: 1 year Benefits:
• Housing allowance: $1200 per month
• Contract completion bonus (payable upon contract completion) o $3000 for first year o $6000 for second year
• Worldwide Medical/Dental insurance
• Life insurance and Accidental Death and Disability insurance will be provided
• Annual travel allowance provided
• 9 days guaranteed off per month
• 30 days personal leave per year Additional information:
• Kun Peng Airlines is a joint venture between Mesa Air and Shenzhen Airlines
• Chinese income taxes will be paid by the company. U.S. taxes will be based on off-shore (expat) status.
• International Medical Insurance Coverage is provided for you and your family anywhere in the world.
• Travel Allowance. The travel allowance covers employee, family, parents, or friends.
• Housing Allowance will provide for a western-style furnished apartment around 180-200 sq. meters (about 1900 sq. ft. with 3BR 2 BA). Housing assistance will include on-site property visits and assistance with lease negotiations. • Interested persons will be considered for upgrade to B-737NG service at parent company (Shenzhen Airlines) upon completion of contract.
• Route System. Kun Peng Airlines will be based in Beijing, and initially include routes to 16 regional airports. We are now providing COMPLIMENTARY membership to our website for pilots who apply for this job. If you are NOT a current member, go to this web address: http://www.wasinc.net/apply.aspx.



Compared to domestic domiciled Mesa RJ Capt Beijing looks like a good deal.

FDXLAG

Guess the MEC didn't look at Mesa when they were comparing tax equalization packages!

TonyC

Mainland China: progressive tax rate, 45% above 100,000 RMB (~12,000USD)

Chinese tax on 200,000 USD = $90,000

Foreign taxes paid by employer is accrued to employee as benefit taxable on US income tax return

Study PWC material when it becomes available ...




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av8rmike

Not sure of the intent of your post. FedEx pays income taxes for our execs when they give them stock bonuses, so I don't see tax equalization in this LOA as such a big benefit to tout. Almost all major corporations take care of the taxes for employees. The MEC is applying full court press in the upcoming weeks and the company has 'helped' us out with a Q&A link on VIPS. Impressive bipartisan cooperation if you ask me. Especially since no one on the MEC or in MGT will be sucking from this rotten egg...

FDXLAG

Tony

Mesa Tax Equalization package is better. Mesa pays the Chi Comms and the pilots pay Uncle Sam. In other words the pilots keep the Foreign Income Exclusion not fred. I could be wrong, have been waiting to see some tax info for 3 weeks! Would rather see the tax info my union dues paid for!

LAG

jonnyjetprop

PTI, since I'm not Fedex but I think this is what Tony C is getting at.

You make $200,000 in China. Fedex pays the Chinesse taxes of $90,000. Your taxable income for US is $290,000 since your company paid the taxes in China. Expats get to deduct the first $80K or so of income, so you effectively pay US taxes simular to the the pilot based stateside.

FDXLAG

Good, how does that work in hong Kong where I would owe 24K of HK taxes (150K income) and almost no uncle sugar taxes?

Under the mesa formula I would make out. In paris I wouldnt.

You would think some one at ALPA national would have a flyer in the drawer!

fdx727pilot

If you read the IRS publications, the tax on income over your exclusion is the same as if you had no exclusion, i.e. 33%, so your tax on $150K (+the $24K the company gave to pay HK taxes) is about 33% of 150+24-82.4 or about$30K. Not quite almost none, unless you have some monster deductions.

FDXLAG

Until Price Waterhouse tells me I am wrong I refuse to accept that I would owe more US taxes on:

My income + FDA benies - Income Exclusion (82.4k) - Housing Exclusion (40-80K)

then

Taxes on my income in memphis

Particularly in Hong Kong.

Of course the Tax Equalization data remains SECRET NO Freight Dog

PicklePausePull

What this LOA lacks is appropriate allocation of risk to the party most able to absorb the costs of those risks.

Currently, the risks of executing flights intra Europe and out of Shenzen fall on the company. They fly crews out to the 'domicile', put crews up in hotels, and provide their transportation. This LOA shifts all of that responsibility to the individual crew, and adds MUCH MORE responsibilty, as ellicited on this site.

In any contract neogtiation, there exists the allocation of the risks involved. With the allocation of those risks is the accompaning reward or compensation for the party who assumes the risks. Here, the company wishes to seek great strides in current and future efficiencies through foreign domiciles. But by creating foreign domiciles, the company creates huge risks that heretofor do not exist, and transfers those existing risks to the individual pilot and his family.

What this LOA does not address, are the COSTS associated with the pilots who will take on the majority of the risks involved in improving market efficiences. Those costs may very well end up being transferred to the company due to loss of anticipated efficiences from risks that cannot be adequately absorbed by the individual pilot.

One of the hidden costs that the union and company apear to ignore is the loss of production that follows a reduction in morale. Those of you who have served know full well how reduction in morale in any unit or squadron affects safety and productivity. It can be a factor that spreads faster than influenza in a WWI trench.

I suggest the union get their collelctive act together and approach this LOA from a standpoint of properly allocating risk, and effectively compensating the party who is most likely to take on those risks with their inherrent costly manifestations.