Let’s talk about income tax. Will you need to pay income tax when teaching in China?

You are thinking about or in the process of embarking on a new adventure, but you ask yourself, do I need to pay income tax back home? The answer depends on your country of residence.

We have put together a list of useful links and contact information for you;

Australia

Will I need to pay income tax when working abroad?

For more information:

• https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Foreign-income/
• https://www.ato.gov.au/Individuals/International-tax-for-individuals/Going-overseas/Working-overseas/Reporting-your-foreign-employment-income/
• https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Foreign-income-of-Australian-residents/Exempt-foreign-employment-income/

Canada

Will I need to pay income tax when working abroad?

For more information:

• https://travel.gc.ca/travelling/living-abroad/taxation

Ireland

Will I need to pay income tax when working abroad? Nope!

For more information:

• https://home.kpmg.com/xx/en/home/insights/2011/12/ireland-income-tax.html
• https://www.revenue.ie/en/life-events-and-personal-circumstances/moving-to-or-from-ireland/moving-or-returning-to-ireland/index.aspx
• https://www.irishtimes.com/life-and-style/abroad/will-the-money-i-earned-abroad-be-taxed-when-i-move-home-1.2987932

South Africa

Will I need to pay income tax when working abroad?

For more information:

• http://www.sars.gov.za/FAQs/Pages/91.aspx
• http://www.wts-southafrica.com/south-african-tax-residents-working-abroad/
• https://www.timeslive.co.za/sunday-times/business/2017-09-15-working-abroad-treasury-rethinks-exemption-on-foreign-earnings/

UK

Will I need to pay income tax when working abroad? No

You can check out the form P85, fill it in and submit it and if you are lucky you will receive a tax refund.

Will I need to pay national insurance? If you like to as it is not mandatory and no punitive action will be taken if you don’t, but if you want to pay you will need to fill out a form by the name: NI38

For more information:

• https://www.gov.uk/tax-foreign-income

USA

Will I need to pay income tax when working abroad?

For more information:

• https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-resident-aliens-abroad
• https://www.americansabroad.org/us-taxes-abroad-for-dummies-update/

New Zealand

Will I need to pay income tax when working abroad?

For more information:

• https://www.ird.govt.nz/international/nzwithos/income/overseas-income-index.html

Paying Tax in China: More information here!

Living or working in China you will pay tax on your monthly earnings, but don’t worry, the school will make sure that all the paperwork and taxes are paid, and you can sit back, relax and feel assured that everything is done for you. If you want some more information, have a look at this article;

http://www.china-briefing.com/news/2017/10/16/paying-foreign-employees-individual-income-tax.html

NOTE: Pioneer & Beyond is a recruitment agency specialised in recruiting teacher to teach in China and we are not qualified tax advisors. Keep in mind that tax laws in any country are subject to change at any time. If you have any questions about taxation in your country, you will need to consult a professional expert and/or government body.