Memoirs of Beijing

It’s that time of the year where locals and expats alike who earn more than RMB 120,000 a year are asked to file for their income tax return.  Income includes salary, bonuses, freelance gigs and property sale.  This is the first time I’ve filled the form and it was a little bit daunting especially for a foreigner who can’t read Chinese.

Taxation in China is quite different from other countries.  My sister who’s working in the US always talk about getting tax refunds.  In the Philippines, you’re taxed according to your civil status, whether you have dependents and your work status.  I haven’t heard of any refunds but they usually have deductions when the annual income tax deadline looms.

In China, expats are being taxed for income of more than RMB 4,800 a month.  After the first RMB 4,800, you have to look at your tax bracket on how much they will charge you.  In any case, whether you have kids or not, whether you work the whole year or not, you would still be taxed for any income more than RMB 4,800 (expats) and RMB 1,800 (locals).  No refunds whatsoever so tough luck!

After filling up the form on their website, http://gs.tax861.gov.cn/index.htm, you will get a “Thank you for filing your tax” screen.  In any case, I still prefer it here as I pay less taxes than in the Philippines and life is a bit better here in Beijing.

So don’t wait till the last minute, tax filing deadline is on MARCH 31, 2010.

We’re almost at the end of 2009 and I hope next year proves to be a better year for everyone.  I hope the world economy makes a rebound and everyone’s life will be at least a bit easier.

Our HR already sent out a memo regarding the 2010 Chinese Holidays.  That means I can plan my vacation and make the most out of the 11 days vacation leave that I’m entitled to on top of the Chinese Holidays.  As usual, expect working on the weekend or seven days straight as China just love to messed up regular working people’s schedule.

• New Year -  Jan 1 (Fri) to Jan 3 (Sun)
• Chinese New Year – Feb 13 (Sat) to Feb 19 (Fri), must work on Feb 19 (Sat) and Feb 20 (Sun) … *aaahhh!*
• Tomb Sweeping Day – Apr 3 (Sat) to Apr 5 (Mon)
• Labor Day – May 1 (Sat) to May 3 (Mon)
• Dragon Boat Festival – Jun 14 (Mon) to Jun 16 (Wed), must work on Jun 12 (Sat) and Jun 13 (Sun)
• Mid-Autumn Festival – Sep 22 (Wed) to Sep 24 (Fri), must work on Sep 19 (Sun) and Sep 25 (Sat)
• National Day – Oct 1 (Fri) to Oct 7 (Thu), must work on Sep 26 (Sun) and Oct 9 (Sat)

There you have it!  I’m dreading the seven day work-week.  I’m pretty sure I’ll be grumpy on the seventh day!  Why can’t they just stick to a long weekend like in the Philippines.

I didn’t get the memo from HR but if you’re planning your holidays or trips this year, try to veer away from the dates below as it would either be difficult to go around or the scenic spots are full of tourists.  Also, employees should take note when you need to go to work and when are the real holidays.

• New Year: January 1-3, 2009.   Not much happening in BJ as this is not one of the major holidays.  Employees are expected back to work on January 4 (Sunday).
• Chinese New Year: January 25-31, 2009.  The most important holiday for Chinese.  Bus station, train station and airports will be swamped with people a week before the big day.  Sale abound throughout the city as presents are expected to be given to relatives.  Girlfriend/boyfriend for hire ads grow rampant to appease the parent’s desire for their children to marry.  Employees need to make up two days to complete the seven days on January 24 (Saturday) and February 1 (Sunday).                               Read the rest of this entry »