Raoul's China Saloon (V5.0) Beta

The Bar Room => The Legalities Board: Visas, Permits, Taxes, and More! (ON-TOPIC) => Topic started by: Tree on June 29, 2014, 02:58:23 AM

Title: Taxing the flight allowance
Post by: Tree on June 29, 2014, 02:58:23 AM
So they just payed out my flight allowance, but taxed it at a rate 1.2% lower than my salary. Note that my salary is a few hundred RMB larger than my allowance.

Which makes me wonder - are we to pay taxes on it at all? They figured out some way to not tax my housing allowance, why not apply the same magic to my flight? Do I need to get the hatchet to take care of the hands in my cookie jar?
Title: Re: Taxing the flight allowance
Post by: The Local Dialect on June 29, 2014, 03:24:07 AM
Taxing the flight allowance sounds like some serious bullshit to me. Mine has never been taxed. Others may say different, but if I were you I'd call shenanigans.
Title: Re: Taxing the flight allowance
Post by: old34 on June 29, 2014, 03:55:02 AM
it's non-taxable only if it's an actual reimbursement for a flight. (receipt. e-ticket required). If it's paid out as an end-of-term bonus in lieu of an actual flight, it's considered wages and subject to tax.
Title: Re: Taxing the flight allowance
Post by: bobrage on June 29, 2014, 03:57:34 AM
old34 is correct.

And things are tightening up re: tax compliance.
Title: Re: Taxing the flight allowance
Post by: Tree on June 29, 2014, 05:17:43 AM
Thanks for the input.

I'm going to go to them on Monday and ask them for a pay stub related to my flight allowance.

If this is legitimately taxed there should be some record of it. However, "pay stubs" from my school seem to be ad hoc excel affairs. Very different from my Korean or American employers...
Title: Re: Taxing the flight allowance
Post by: teacheraus on June 29, 2014, 07:53:02 PM
Unless it is actual reimbursement it should be taxed. Given that tax is based on the total amount paid in the month... then if you had normal pay and flight allowance in the same month... then probably the rate applied to the extra amount will be higher.
Title: Re: Taxing the flight allowance
Post by: Tree on July 01, 2014, 01:46:30 AM
Got an answer from the Financial department. If we produce a ticket the allowance is untaxed, if we don't it will be added to our salary, hence taxed at a higher rate.
Title: Re: Taxing the flight allowance
Post by: bobrage on July 01, 2014, 02:23:25 AM
That sound on-the-nose legit.

If you don't like your employer then, you know about the thing.... the thing you can do... there... yes?
Title: Re: Taxing the flight allowance
Post by: Tree on July 01, 2014, 06:35:24 AM
Cost benefit analysis points clearly in one direction, especially seeing as how I've managed to improve my overall conditions.

Off topic: today was flipping great. They've assigned me new roles, decreased teaching hours, and have changed my department so I'm no longer working "with" a toxic "professor."

George - drinks are on me!
Title: Re: Taxing the flight allowance
Post by: GuangLei88 on August 30, 2015, 03:15:41 AM
I got taxed on my flight allowance because my (now former) employer wouldn't accept a ticket that was over 3 months old. But then again they did a heap of dodgy stuff so I am glad that I am out of there. After the recent explosion in Tianjin, while the rest of the area was still closed down, they only closed their Binhai centre for 2 days. 'Nuff said about their priorities.
Title: Re: Taxing the flight allowance
Post by: cruisemonkey on September 06, 2015, 10:40:59 AM
My flight allowance (10,000 RMB/year) is taxed because half is added to my salary at the end of each semester (July & January)... along with allowances for: 1.'phone'; 2.'water & electricity'; 3.'transportation'; and 4.'travel'. Result - higher tax bracket. That's okay though... I don't pay for water & electricity... and run my aircon/heaters 24/7, ten months per year (I'm very comfortable).
 bfbfbfbfbf