How does tax work in China for English Teachers?
Taxes for English teachers in China can be confusing, especially if your school is trying to help you out. If you are a new teacher in China and if you earn less than 4,800 RMB per month. You have no tax liability in China. Foreigners working in China have to pay personal income tax only if their monthly pay is above 4,800 RMB, up from the previous threshold of 4,000 RMB. There is a lot of confusion surrounding the law of taxes and if teachers should pay taxes back home, or in China. It’s best to check with an accountant in your own country prior to coming to China. Information we have received suggests that you are totally exempt from taxes the first 90-days in China. Everything you make over 4,800 RMB requires you to pay a tax on ONLY the amount above 4,800 RMB. The tax starts at 15% and increases proportionally with the wage. In many cases, the host institution will absorb this cost as a benefit to the teacher. Teachers should still ask for monthly pay slips from employers for their
