LOUNGE all new asksnapzu ideasforsnapzu newtribes interesting pics videos funny technology science technews gaming health history worldnews business web research entertainment food living internet socialmedia mobile space sports photography nature animals movies culture travel television finance music celebrities gadgets environment usa crime politics law money justice psychology security cars wtf art google books lifetips bigbrother women apple kids recipes whoa military privacy education facebook medicine computing wildlife design war drugs middleeast diet toplists economy fail violence humor africa microsoft parenting dogs canada neuroscience architecture religion advertising infographics sex journalism disaster software aviation relationships energy booze life japan ukraine newmovies nsa cannabis name Name of the tribe humanrights nasa cute weather gifs discoveries cops futurism football earth dataviz pets guns entrepreneurship fitness android extremeweather fashion insects india northamerica
+2 2 0
Published 3 years ago with 1 Comments

Join the Discussion

  • Auto Tier
  • All
  • 1
  • 2
  • 3
Post Comment
  • YourTaxGuy

    The article from Point 7 was a good read. I wouldn't go so far as "seriously keeps me up at night". I don't have much experience with Chinese tax law, but the way it describes China's actions are quite similar to how the IRS handles the underground economy here in the US. As far as the tax rates:

    First, employers of China-based employees are supposed to pay employer taxes and benefits, and the American company is not doing so. These taxes and benefits vary from city to city but they usually total around 40 percent of the employee’s salary.

    That seems to be the equivalent of US FICA, UI, disability, etc. taxes. 40% of employee's salary seems to be quite high there, but for a country like China, I'm not surprised.

    Second, the American company should be withholding a certain percentage (around 15 percent) of its China-based employees’ wages, but is is not doing that either.

    A 15% income tax on individuals isn't that bad, lower than what a lot of US taxpayers pay.

    Third, the American company is doing business in China (it has employees in China and it is making sales there), and so it should be paying income tax on its profits (figure around 25 percent).

    And a 25% corporate income tax seems reasonable to me as well.

Here are some other snaps you may like...