China and Tax Equalization
02-12-2011, 05:44 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Oct 2009
Position: 777 Capt
Posts: 129
China and Tax Equalization
I discovered this neat tool called the internet, invented by a guy named Al Gore. I Googled Income+Tax+China+Foreign. Millions of hits. Here is one that simplifies just the personal tax. (It is in wan, so make the conversion, you can Google that too!) This does not include the tax you would have to pay on your housing allowance so set that aside.
Personal Income Tax in China
As near as I can tell ALL of your income is taxable in China.
So if one of you folks that is claiming this is a screw job would please give your tax comparison it would be helpful.
By the way, why haven't we seen a thread by all those guys in China that are getting taking advantage of because of this?
<<
Insert crickets chirping here>>
Personal Income Tax in China
As near as I can tell ALL of your income is taxable in China.
So if one of you folks that is claiming this is a screw job would please give your tax comparison it would be helpful.
By the way, why haven't we seen a thread by all those guys in China that are getting taking advantage of because of this?
<<
Insert crickets chirping here>>
02-12-2011, 05:49 AM
#2
Slainge Var'
Joined APC: Oct 2006
Position: Zeppelin Tail Gunner
Posts: 1,530
Originally Posted by Chuck Turpen
(It is in wan, so make the conversion, you can Google that too!) >
02-12-2011, 06:12 AM
#3
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Joined APC: Jul 2009
Posts: 1,224
Hey Chuck, just to let you know, but we base our pilots in Hong Kong. Please try and keep more informed.
Hong Kong Tax - Understanding Hong Kong Tax
"This low level of taxation brings Brits, Aussies and Americans by land, sea, air and camel to escape their native countries' tax regimes, contributing to Hong Kong's internationalism."
Hong Kong Tax:
No sales tax
No capital gains tax
No VAT
Maximum salary tax of 20%
Profit tax maximum of 16%
Chirp, chirp, chirp.
Hong Kong Tax - Understanding Hong Kong Tax
"This low level of taxation brings Brits, Aussies and Americans by land, sea, air and camel to escape their native countries' tax regimes, contributing to Hong Kong's internationalism."
Hong Kong Tax:
No sales tax
No capital gains tax
No VAT
Maximum salary tax of 20%
Profit tax maximum of 16%
Chirp, chirp, chirp.
02-12-2011, 06:22 AM
#4
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Joined APC: Sep 2007
Position: A300CAP
Posts: 479
HKG pilots are taxed by both Hong Kong and China. It's complicated, (and don't hold me to this...I barely understand it myself) but Hong Kong is roughly 16% and only applies to days you are actually physically present in Hong Kong. You can see this isn't much, since most guys are gone half the time flying, and also gone on lots of their days off travelling. Mainland China gets 51% based on when and how long you transit China (if on a trip), or if you live there.
Lots of smoke and mirrors on how the company and PwC manipulate those numbers, hence the confusion. I pretty much just give them all my money, and they give me some of it back and let me go out and play...
Lots of smoke and mirrors on how the company and PwC manipulate those numbers, hence the confusion. I pretty much just give them all my money, and they give me some of it back and let me go out and play...
02-12-2011, 06:45 AM
#5
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Ok Golf and fly it appears that neither of us has the whole picture
Sounds complicated so could a few more guys that are there give us some actual numbers
Haven't been to China in a while, prefer the beer in Germany but I'll get reacquainted in March
Sounds complicated so could a few more guys that are there give us some actual numbers
Haven't been to China in a while, prefer the beer in Germany but I'll get reacquainted in March
02-12-2011, 07:06 AM
#7
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Joined APC: Jun 2007
Position: Great White North
Posts: 391
Originally Posted by Chuck Turpen
Ok Golf and fly it appears that neither of us has the whole picture
Sounds complicated so could a few more guys that are there give us some actual numbers
Haven't been to China in a while, prefer the beer in Germany but I'll get reacquainted in March
Sounds complicated so could a few more guys that are there give us some actual numbers
Haven't been to China in a while, prefer the beer in Germany but I'll get reacquainted in March
- days away from HKG didn't seem to be in the equation ... maybe it was
- Gross pay seemed to be way inflated for a 6 month period... #'s from FDX
- 25% of gross pay. Saw it, signed it ... big bill
I couldn't afford itYMMV
02-12-2011, 02:36 PM
#8
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Thanks for the input Cujo.
This quote from the TA discussion and a question asked at the MEC meeting were what prompted me to ask the Equalization question.
Iarapilot can you shed some light on how the tax is calculated so that we can see numbers that support the merits or demerits of Equalization?
Thanks
This quote from the TA discussion and a question asked at the MEC meeting were what prompted me to ask the Equalization question.
Originally Posted by iarapilot
I am well aware, and agree with you. And no kidding, the FDA is not in SFS. You miss my point which was in response to thebaron.
With the current FDA LOA we have tax equalization due to the fact that the host country wants us to pay taxes into their system. And the Company isnt going to leave it up to individual pilots, on their own, to pay those taxes. The tax equal was a change with the FDA LOA under section 6 and the (un)enhanced version. And, it is not ones Constitutional right, it is a right under the US tax code. Maybe you missed my point, or I didnt make one! And, the reason why we didnt get the exclusion is because we didnt negotiate for it. And..... it was probably the top .1% of wage earners.
With the current FDA LOA we have tax equalization due to the fact that the host country wants us to pay taxes into their system. And the Company isnt going to leave it up to individual pilots, on their own, to pay those taxes. The tax equal was a change with the FDA LOA under section 6 and the (un)enhanced version. And, it is not ones Constitutional right, it is a right under the US tax code. Maybe you missed my point, or I didnt make one! And, the reason why we didnt get the exclusion is because we didnt negotiate for it. And..... it was probably the top .1% of wage earners.
Thanks
02-12-2011, 02:50 PM
#9
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Joined APC: Aug 2006
Position: HKG Bus Driver
Posts: 115
Originally Posted by Chuck Turpen
Iarapilot can you shed some light on how the tax is calculated so that we can see numbers that support the merits or demerits of Equalization?
Thanks
Thanks
Try googling "expat" & "tax equalization" for fuller discussions.
Here is one to start with: Tax Equalization on Expatriate Assignments: Understand the International Assignment Policy & Expat Tax
02-12-2011, 02:54 PM
#10
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Joined APC: Apr 2006
Position: MD-11 Captain
Posts: 4,304
Originally Posted by GreaseA6
Chuck, not sure whose numbers you would like to see or what "exactly" you are looking for. Tax equalization is a "tool" used by companies so that their employees are not literally killed by foreign taxing authorities and hence would not take the overseas assignment that the company needs someone to fill.
I agree. Except in this case FedEx makes a profit on tax equalization on the backs of it's employees. It's disappointing.
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