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Q: Would you negotiate this offer?
I was considering a job offer with a few different companies. It took me a little longer to respond to one of the companies, so they decided to make their offer a little more appealing, however, I am an accounting/business major, so I instantly saw the deception. I do not want to reveal the exact figures, so I am expressing the numbers as percentages.
So, basically, the new monthly salary is a 21% increase from the original salary. The weekly working hours increased by 17%. The tax increased by a whopping 734%.
So, to give you an example;
Original Salary: 2000 rmb
Original Tax: 25 rmb
New Salary: 2000*21%=2420 rmb
New Tax: 25*734%=183.5 rmb
There is no way that a 21% increase should raise the tax rate that much! A person who makes 2000 only pays 25 in taxes while a person who makes 420 more pays 183.5 in taxes. That's absurd!
So, after taxes, the realized increase in salary is 13% with a 17% increase in hours. So, in essence, they are only compensating me, disproportionately, for more work hours. What would you do in this situation?
5 years 42 weeks ago in Business & Jobs - China
The taxes are supposed to be unless it's changed again
2000 to 4800 10 percent for a month
4800 to 10000 20 percent for a month
they also deduct housing allowance and utilities from reported salary to government to reduce what the gross is for taxes but they don't tell you this so they keep the savings for the company or school.
For example 10000 less housing and utilities 3000, 7000 taxable income reported to the government and paid. but your pay sheet shows 10000 paid housing provided etc and taxes on 10000 taken out of check. What they report and what they pay are always different, you can verify with a translator at the tax office. Some expensive cities will jack up the housing and utilities to 5000 to avoid paying taxes on the 5000 they pay you. Some government schools will pay no taxes and actually pay cash and never pay into the system in your name, but tell you they have paid taxes. If you are new to China, taxes are not the screw job you have to worry about, the payment of your salary 15,30, or 45 days after the work is done and if your teaching, the pro rate for a half a month if you start in the middle of a month or a pro rate for 10 days of january instead of getting paid for the whole month, pro rates could make your monthly recruiting salary look good but you only get 9 or 10 months pay at that rate for the year contract.
"The tax increased by a whopping 734%."
Bullshit! No way the taxes increase that much. Either the employer or you is bullshitting.
Check taxes here: https://www.icalculator.info/china.html
What would I do?
I'd point this out to them and await their response.
I would keep bargaining with them. They need you, not the other way around.
Taxes don't work that way. Even in China, it's a fixed percentage of your Base salary. Even if you hit a new income bracket (at 2000 rmb you don't) taxes increase at sensible levels.
