Posted by
mr nikolai
17 yrs ago
I have been offered a job at an international school in DongGuan. They tell me the pay is tax free, which I have found to be not unusual from looking at other international schools.
The worry is that the payment is also in cash each month. I'd like to hear some thoughts on this before I accept offer.
Also, what about bringing the cash back to UK after. Won't I have to pay tax on that?
Thanks
Please support our advertisers:
Well it's quite clear that they will not be legally employing you using a Z or work visa. They will probably try and hire you on an F visa (business) which is illegal. Tax must be paid for money earned, there is no way around that in China even for small amounts.
Please support our advertisers:
I think the tax is paid, but by the company itself. They call it absorbing the tax. It seems quite common with a large amount of international schools in China, as many have offered it as a perk in their vacancy postings.
Please support our advertisers:
I also just found it that I'll be getting a residence visa.
Please support our advertisers:
China does work on a Pay As You Earn tax system. Therefore they will be paying tax, however what they will probably be declaring to the officials will be at a lower figure, that's why the cash payment. In banks it would be too easy to trace.
Please support our advertisers:
Not too sure its as dodgy as you're making it sound, as I've just been in contact with them and they've offered to pay through a bank if I preferred. Apprently the teachers there already asked for the payments in cash as they wire it home each month and it saves having to withdraw from a bank. They all ended up adopting this method, but I'm welcome to choose the bank method if I'd like.
I use HSBC over here in England. Can anyone confirm HSBC in China has a good level of service?
Please support our advertisers:
Sorry, I should have been clearer. I am dealing with a well known agency called Teach Anywhere who have a very good reputation. They tell me this its nothing to worry about and quite common with their Asian vacancies that the company absorbs the tax.
To be honest, I find it more worrying that the payment was in cash, but now they've offered to pay through a bank and explained the cash situation I feel a lot better. I'm still waiting to hear back from a family contact in Hong Kong before I sign, but thank you all for your warning signs. I just hope you are wrong.
Please support our advertisers:
Yes I read the same as GreenValleys and having worked in China for many years have seen more than my fair share of tax dodges, etc.
Many ways to drop tax burden in China, cash is one way, paying some salary in China and another portion in HK is another. The tax methods are different all over Asia, in fact HK is completely different to China. Educational establishments in China have had a far from flawless reputation when dealing with foreigners so as myself and many would say be very careful.
Next thing DongGuan is not a great place to be. It's mainly industrial so a huge amount of migrant workers. This does mean you have to keep yourself safe as well. There are a few foreigners there working for larger companies but few and far between. Lastly there are very few HSBC banks in China and most of those are only staffed with Chinese speaking people.
Please support our advertisers:
They opened HSBC DongGuan in December 2007, and have opened more since.
Please support our advertisers:
You must be logged in to be able to reply.
Login now
Copy Link
Facebook
Gmail
Mail