Wo Shi Laowai – Wo Pa Shui

This Blog was Invented in Xi'an 5,000 Years Ago

A Word About Tax

Posted by MyLaowai on Friday, November 9, 2007

Basically, China’s individual income tax is famous for its complication and rooms [sic] for different interpretation.

But don’t just take my word for it – that was an exact quote from Shanghai’s Government website. According to official statistics from the State Administration of Taxation (which I trust about as far as I trust the lowlife scum who run the Party), China took in 3.7636 trillion yuan (about 470.5 billion US dollars) in taxation alone during 2006. The figure does not include income from tariffs, tax on arable land use and that paid by real estate buyers, the administration said on its website. And it looks even better for 2007, with the aggregate tax revenue in the first nine months this year approaching the total generated in 2006, said Shu Qiming, Director of the State Administration of Taxation Department – that’s a whopping 3.72 trillion yuan (495.5 billion USD) in the first three quarters alone. Even stamp tax from securities trading sky-rocketed to 143.6 billion yuan (19.1 billion USD) for the same period. I’m not kidding – these figures were taken directly from the official website.

And yet, I’m constantly being told by the locals that “…China is a poor country, so other countries should help us”. And yes, it is true that there are, indeed, a great many very poor people living here. So, what on Earth do they spend it all on? Here are a couple of things they could reduce expenditure on:

Defence.
Let’s be reasonable, shall we? The Communist Party claim that they are spending a paltry USD$45 billion this year on the military (an 18% increase over 2006) – enough to buy a copy of Guns & Ammo for every soldier, but not much more than that. Yeah, sure. China’s published defence budget does not include large categories of expenditure, including expenses for strategic forces, foreign acquisitions, military-related research and development, and China’s paramilitary forces. And even with that in mind, a more credible figure is USD$85-130 billion. And why should this be surprising? After, the December 2006 Defence White Paper stated all-too-clearly that the goal was:

“…a three-step development strategy in modernizing its (China’s) national defence and armed forces, in accordance with the state’s overall plan to realize modernization. The first step is to lay a solid foundation by 2010, the second is to make major progress around 2020, and the third is to basically reach the strategic goal of building informationized armed forces and being capable of winning informationized wars by the mid-21st century.”

And it isn’t all about Taiwan, either, although with almost 1000 ballistic missiles currently aimed at Taiwan, and with that number growing by 100+ each year, China probably proposes to resolve that issue in its favour through non-peaceful means. The Japanese are justifiably concerned, and have expressed fears that with a consistently expansive military budget, Japan could one day even become a Chinese province. Don’t laugh – Chinese schools have recently begun telling schoolchildren that this will happen by 2020.

In any event, a sizeable chunk of my tax yuan are being spent on armaments, with China now having the second largest military budget in the world, larger even than Russia.

Space Program.
The Chinese claim to have spent a grand total of less than 19 billion yuan (2.4 billion U.S. dollars) on the first five Shenzhou spacecraft, and that their lunar probe project (part of the three-stage Chang’e Program which aims to place an unmanned vehicle on the moon by 2010) has a budget of 1.4 billion yuan (170 million U.S. dollars).

Bullshit.

The real figure is hard to state with certainty, due to both the opacity of the budgetary system, and the fact that the Chinese space program is highly integrated with the military. Nevertheless, most reliable estimates put the annual expenditure at between USD$1.3 and USD$3 Billion, with several tens of billions more invested in military-space programs. This places China in third place, spending more than anyone else except NASA and the European Space Agency. Not bad for a ‘developing country’.

By comparison…

Social Spending.
According to UNICEF:

– Relative to the size of China’s economy and the overall government budget, expenditure on the social sectors remains low by international standards.
– The structure of government expenditure in these sectors is tilted towards higher level institutions (higher education and hospitals at county level and above) at the expense of the institutions providing essential services at county, township and village levels.
– Expenditure is inequitably distributed both regionally and between urban and rural areas, due to the high degree of decentralization in the financing of education, health and other social services and the large differences in local levels of economic development and tax revenue, which are insufficiently offset by inter-governmental transfer payments.
– Government resources account for a relatively low share of total social sector expenditure, leaving individual households to assume much of the responsibility for paying for services, through fees and user charges, which has placed a heavy burden on the poor, particularly in the rural areas and among migrants in the cities.

Education got just 2.8% of GDP in 2004, Health spending accounted for 0.8% of GDP for the same period (although that said, Education is apparently getting 4% of GDP now. Big whoops). According to State Media, rural schools owe their teachers more than 10 billion yuan in back pay and failure to pay teachers’ salaries has contributed to the severe shortage of qualified teachers in the countryside. Annual revenue in one county in the poor, north-western province of Gansu was enough to cover only one month’s salary for its permanent teachers and public servants.

I guess it makes sense, though. After all, why help your poor, when you can simply buy a lot of weapons and high-prestige items. It worked for the National Socialists back in the 1930’s and it’s showing every sign of working just fine now for the Chinese Communists. Hell, they got their Olympics, too…

Anyway…

Back to the Government website. I’m going to leave you with some useful information, helpfully provided by the CCP. Just in case you wanted to live here, or anything.

Tax
Under some circumstances, foreigners in the city must pay taxes. Income tax is probably the most important and also the most unavoidable.

Basically, China’s individual income tax is famous for its complication and rooms for different interpretation. Sometimes, even overseas tax consultants feel puzzled when they deal businesses relate to China for clients.

If you worked in a local company (domestic or foreign invested) or the local office of a foreign company, you may have your income tax handled by your company, otherwise, you’d better ask for help from experts, such as consultants from accounting firms (local or international) or officials who work for local taxation, finance administrations. Normally, you won’t have a direct contact with local tax officials, unless you do business for your own.

Contact the local tax and finance administrations: Click here to access there official Website. English version is not available.

Pets
Import.
Bringing your pets (only cats or dogs are allowed) to the city is possible, but the quarantine procedure is as complicated as you can imagine. With a whole set of original certificates, including a health certificate and a rabies vaccination certificate, your pet will go through a 30-day compulsory quarantine by the entry-exit inspection and quarantine authorities.

With one passport, you can bring only one pet. The quarantine service will cost you at least 2,000 yuan (US$250) and, after your pet has passed quarantine, you should register it at the local police department under the name of a local Chinese resident. You may need to seek help from a local Chinese you trust to accomplish the mission.

Buy or adopt.
You may also buy or adopt animals here. If you want to buy one, many are available at local pet markets. You should choose only licensed and vaccinated animals. Otherwise you may see the one you picked up die in a few days, because it has been kept alive by injected drugs.

Phone Numbers
Police: 110
Telephone Repair: 112

Money Transfer
To transfer money gained here to your home country is a technical job. You should seek help from law firms or accounting firms. First of all, you should obey Chinese laws. In some conditions, a foreigner needs to pay tax and some service charges. It’s better for you to make a plan with help from a lawyer or accountant on your money transfer project.

Internet
Don’t be frightened by its crude facade. Most Internet cafes in Shanghai don’t have pleasant conditions, but they charge very low. Remember the Chinese characters for Internet cafe.

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2 Responses to “A Word About Tax”

  1. I am totally in favour of the Chinese lunar program, but I don’t agree with the general approach. ‘Unmanned landing by 2010’, get fucked! What kind of piss poor pooftah tactics is that. Make it a manned mission, and send all the 1.3 billion fucking cunts back up there again, and make this planet a better place.

  2. Matt said

    “you may see the one you picked up die in a few days, because it has been kept alive by injected drugs.”

    Ha ha ha!!

    “Telephone Repair: 112”

    Bwah hahaha!!!!!!!

    Keep up the good work, this is all priceless stuff.

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