Taxes for Teachers

[Niko]

Teachers in China are subject to tax!

Be on the alert if you read an ESL job ad that states your teaching income is tax free.

According to Chinese tax regulation:

"The tax rate kicks in at RMB 4801 per month for English Teachers."

Locals have a RMB 800 to RMB 1200 allowance depending on the city and foreigners have a RMB 4000 allowance.

Personal income tax is most commonly handled by your employer. Be concerned if claims by the school are made that your teaching income is tax free. Some teachers are illegally employed without realising it.

All forms of income are taxable:

1. Salary
2. Bonuses
3. Allowances
4. Other benefits (monetary or non-monetary)

Teachers are entitled to housing, airfares and children education benefits without having them counted as taxable income. All other benefits are taxable.