TAX: How to calculate and claim back your taxes!
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The following article was produced by GuideinChina
See original article via Read More at the end of this article
Our friends at GuideinChina has issued this useful article about your taxes, social security calculations and how to claim your taxes if you leave China. It's worth knowing if you've been here legally for some years and have been paying taxes via your employer!
Almost everyone knows that we can get the pension from social insurance when reaching retiring age. But for foreigners, what if they leave China but not yet reach the retiring age? Foreigners can take the pension money in one time before leaving!
We are going to outline our findings in an easy way to show you how much you can get and how to take back the money. As that amount is based on the social insurance payment. So, we started with how much you need to pay.
How Much You Need to Pay?
Here is an amazing tool, as long as you input your monthly salary before tax, then it clearly shows how much you and your company should monthly pay. Go to search the link below (copy and paste into a browser):
1). Choose the city where you are working (different cities in China have different rates for social insurance). In this article, we choose Guangzhou as an example:
2). Input your monthly salary before tax in the right field as shown below (in this article, all calculations are based on an example salary of RMB10,000):
For non-permanent residence holders, since you can't buy housing subsidy (assuming your salary is RMB10,000 before tax, after deducting social insurance), you get RMB 8,980.
Here is the equation:
10,000-800-200-20 = RMB 8,980
So the result (RMB 8,980) is just for the deduction of social insurance, not including tax.
So, assuming the same monthly salary of RMB 10,000, your employer needs to pay RMB 1020 and RMB 2289 respectively for social insurance each month.
How Much You Can Get When Leaving China?
You can get your personal payment of pension when leaving China before reaching the age of retirement.
That amount is your monthly personal payment of pension multiplied by the number of months you have paid social insurance.
For example, if your salary before tax is RMB10,000 then your personal payment of pension is RMB 800. After 10 years (120 months) of paying social insurance, the amount of money you can get when leaving China is:
800*120= RMB 96,000!
Go to the local Social Security Bureau which your LAST company belongs to (you can ask the employer). If you move to another city, we suggest you take out the pension before moving, because the Social Security Bureau systems in each city is not connected and it'll be very inconvenient sort this matter out from your new city of residence. Here are three documents needed for the application:
Confirmation letter
Provided by the local Social Security Bureau.
Passport
Both original and photocopy are needed.
Debit Bank Card
Only four banks are accepted: Bank of China; Industrial & Commercial Bank; Agricultural Bank of China; China Construction Bank
Your total personal payment of pension will return back to your debit card in one time. It's estimated to take seven working days. You may need further documentation. Best to explain your situation to the local Social Security Bureau office and follow their advice.
Original Source: HiTouch
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