Hi everyone,
I'm considering being hired by my employer in Shenzhen and I'm wondering what the tax implications are. Unfortunately the chinese government websites arn't that clear.
From what I can gather I need to pay Individual Income Tax (IIT), plus pension, unemployment insurance, and medical insurance. Of course, these 'insurances' are just a hidden tax, and I kind of assume the 'pension' can never actually be recovered, so it's another form of tax aswell.
Once these all add together they seem to add up to about 38% of my salary. Does this seem normal?
I read somewhere else that some of these 'insurances' may be capped at 3 months of the standard salary of the province you work in, but I'm not really sure. It's all rather confusing actually.
Has anyone worked and payed tax in Shenzhen? Any personal experience on how tax (and 'insurance') is calculated would be much appreciated!