# Beijing Social Benefit Tax Question



## Beijing2013 (Jun 16, 2013)

Hi All!

I am in the process of relocating to Beijing for my company. I have a few questions maybe the members can answer or point me to the right direction.

For Expats, are monthly rental fee a tax deductible item? I have been hearing rumors that's possible, anyone can confirm this?
Do we as Expats get any of the social benefit we pay?
My company is telling me as expat, I have no obligation to contribute to public housing fund, is that wise? isn't that tax free way to fund my monthly rental needs?

Any other tax tip would greatly appreciate! 

Peter


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## ColinF (Jun 9, 2013)

Beijing2013 said:


> Hi All!
> 
> I am in the process of relocating to Beijing for my company. I have a few questions maybe the members can answer or point me to the right direction.
> 
> ...


Peter I am not a tax consultant and suggest that such questions be directed to someone who knows the tax implications for you both in China and in your home country.

Many of the Expats that I know have a package in which the amount payable is after tax - ie it is the employer's problem to work out to best reduce the taxable amount.

My personal experience shows that house rental is tax deductible as is the Social Security.

I suggest though that as a foreigner you will never want to use the Social Security payments that you have to pay - if ill I assume you will want to use a private Western operated medical facility not a local Chinese hospital, you will not utilise the Chinese pension and I think that you won't be here long enough to use the housing fund to buy a house in China.

I think your company is correct. You do not need to contribute to the housing fund and there is no connection to this housing fund and your monthly house rental. This housing fund is basically a savings scheme so that you can purchase a house in X years time.


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## Beijing2013 (Jun 16, 2013)

Thanks for your response! Exactly what I was looking for! If I ever made my way to Beijing, will definitely buy you a drink! 

Peter


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## ColinF (Jun 9, 2013)

Peter hi

Glad to hear that it help.

Do you have an estimated arrival date (just prior to the new school year?)?

Fell free to reach out if you need any other assistance.


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## Beijing2013 (Jun 16, 2013)

I am aiming for 8/1, maybe a bit aggressive..


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## ColinF (Jun 9, 2013)

Beijing2013 said:


> I am aiming for 8/1, maybe a bit aggressive..


Just a small thought for you ... the world is full of different cultures, some of the differences are trivial, some small and some event though trivial and small can really confuse people.

Dates are one such example - based on logic I understand that you mean 1 August 2013. However as a Brit I read the date as 8 January 2014.

FYI - In China, the date format is year, month, day.

So 12/08/05 

in China is 5 Aug 2012
in USA is 8 Dec 2005
in UK is 12 Aug 2005

can I suggest that you adopt the habit of always using two digits to express the day, letters to express the month and four digits to express the year that way there is less chance of confusing people.


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## TJexpat (Feb 9, 2015)

*Housing Fund*

What about using my wife's housing fund to use for a down payment. The loan would be "ours" and I can't find anything that says either way of using hers. Any ideas? It's not like it's a lot, 102k RMB but it would be nice to use to help with the down payment.
Thanks,
Mike...


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