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Bank & Tax Services - A practical guide
About Bank
When in Rome, do as the Romans do. When you stay in the city, you should have enough yuan -- China's official currency -- to maintain your daily expenses, rent, food, clothes and incidentals. Some people will say US dollars are accepted in some places here. It won't be convenient for you to live your life depending on US dollars. You'll constantly be looking for somewhere to exchange your dollars for yuan. Except some hotels, resorts or places only for foreigners, you cannot use US dollars or other foreign currencies directly in the city.
You can exchange the currency over the counter at some banks in the city. Of course, you can use your credit cards in most of the Shanghai shops, but groceries (bought in grocery stores), rents or other bills will be collected in cash.
As a financial center in China, or even Asia, Shanghai has a lot of banks and financial companies, both domestic and overseas, which may offer you a series of financial services. Their branches are available all around the city.
Retail branches and ATMs
Branches, sub-branches and ATMs are everywhere in the city, especially in downtown. You will easily find a dozen in the area where you live. If you use bank cards, you can deposit or get cash in yuan everywhere and any time in the city. Some will charge fees for the services.
You can get the address of the specific branches or ATMs of your favorite banks from their official Websites, Google local guidance or just by dialing the customer service hotline.
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.
Click here for the official Website of China’s State Administration of Foreign Exchange, which rules your money transfer from Shanghai to your designated place. An English version is available.
Contact details of the Shanghai Branch of the administration:
Address: No.181, Lujiazui Road E., Shanghai, 200120
Contact numbers:
General Affairs Department: 86-21-5884 5950
Balance of Payments Department: 86-21-5884 5000 Ext 5975
Current Account Management Department: 86-21-5884 5000 Ext 5663
Capital Account Management Department: 86-21-5884 5000 Ext 5958
Supervision and Inspection Department: 86-21-5884 5000 Ext 5969
About 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.
Individual income tax in China charged mainly every month with different rates from 5 percent to 45 percent of the total income with threshold amount --4,000 yuan (US$500) for foreigners -- deducted. Generally, people gain more will be charged more. If your salary is higher than 100,000 yuan a month, you should pay almost half your income to Chinese government.
Starting from July 1, 2011, China adopts a new set of tax standards on personal income tax. This small tool helps you calculate how much tax you are going to pay each month.
Example: If you receive 10,000 yuan/month and have to pay a total of 1,500 yuan/month for unemployment insurance, pension fund, public health insurance and public housing fund, then based on this calculator, you'll have to pay ??? yuan personal income tax every month.
Please note: the requirement on social welfare expenses, such as umemployment insurance and pension fund, may vary from province to province in China.
Total income: |
YUAN/MONTH |
Social welfare expenses: |
YUAN/MONTH |
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Bank Lists
- Foreign
- Local
HSBC Shanghai Branch
(HSBC Shanghai Centre Sub-branch)
Address: Suite 106, G/F and Suite 400, 4/F, Shanghai Centre, 1376 Nanjing Road (W), Shanghai 200040
Tel: [86] (21) 6279 8582
(HSBC Shanghai Hong Kong Plaza Sub-branch)
Address: N129 Hong Kong Plaza, 282 Central Huaihai Road, Shanghai 200021
Tel: [86] (21) 6390 8800
(HSBC Shanghai Regal International East Asia Hotel Sub-branch)
Address: G/F, Regal International East Asia Hotel, 516 Heng Shan Road, Shanghai 200030
Tel: [86] (21) 6473 9898
Standard Chartered Bank Shanghai Branch
Address: F1, 35, China Merchants Tower161 Lujiazui Dong Road Pudong (200120)
Tel: 5887 1230
Bank of East Asia Shanghai Branch
Address: F1, Bank of China Tower200 Yincheng Zhong Road
Tel: 6888 0333
Bangkok Bank
Address: 7 Zhongshan Dong Yi Road
Tel: 6323 3788
Bank of China
Address: 23 Zhongshan Dongyi Lu
Tel: 6329 1979
Website: http://www.boc.cn/en/static/
Industrial and Commercial Bank of China (ICBC)
Address: No. 9 Pudong Avenue
Tel:5888 5888
Website: http://www.icbc.com.cn/e_index.jsp
Bank of Communications
Address:188 Yinchengzhong Road
Tel:95559
Website: http://www.bankcomm.com
Pudong Development Bank
Address: No.12, Zhongshan Dong Yi Road
Tel:6161 8888
Website: http://www.spdb.com.cn/chpage/c510/
China Merchants Bank Shanghai Branch
Address:No.161, Lu Jia Zui Dong Rd
Tel:95555
Website: http://english.cmbchina.com/
China People's Construction Bank
Address:No.201, Yincheng East Road, Pudong
Tel:58880000
Website: http://www.ccb.com/portal/en/home/
Tax Guide
Foreigners who live in China for more than 90 days within a year (from January 1 to December 31) must pay income tax on incomes received in the country.
If part of their income is paid outside China, but paid by local companies, organizations or individuals, they still need to pay income tax on those incomes.
From the sixth year they live here, they must also pay tax on any income derived outside China.
Foreigners who live in China for less than 90 days in a year ( from January 1 to December 31) shall pay income tax on income received in the country, which won't include the part paid by employers outside China or by Chinese branches of those employers.
Foreigners who leave China temporarily for 30 days once in a year (January 1 to December 31) or leave several times for a total of 90 days in a year (January 1 to December 31) won't get a time reduction on their records.
Unfortunately, besides the Chinese taxation rules, foreigners may also have their own countries' tax law. They may pay tax twice for their business in China if their homelands have no bilateral taxation agreements with China or preferential policies on tax.
If you are a citizen of a country which has a bilateral taxation agreement with China, the 90-day threshold will be extended to 183 days.
