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Q: Taxation on former Chinese employer's compensation payment
Hey guys.
If I would receive a compensation payment from my former Chinese employer and I agree on handling the taxation myself, how can I make an estimation on how much I would need to pay?
My former salaries where net salaries split into some part paid into a German and anther into a Chinese bank account. So I will just receive a statement about the tax paid on that but have no idea whether everything was according to law or not.
Does it make any difference for the taxation if the amount is paid in Euro to the German account or RMB to the Chinese one? If it's directly paid into the German account I would not have the trouble dealing with authorities transferring it, which requires proof like a tax statement (mainly to prevent money laundering I guess).
In case I receive it in RMB I would probably use it to buy myself a car here in China.
7 years 9 weeks ago in Money & Banking - China
There are a number of variables in just this alone, so you'd be better off asking (paying for) an accountant... or just go to the local taxation office (with GOOD translator!)
