I am American, working in shanghai for a rep office more than 183 days but less than 1 years because am travelling a lot. and my pay have been slit into 2 portion, half was paid into my US bank account in USD and the other half was paid into my bank of china account in USD, every month I convert the salary I received in BOC to RMB to pay my china tax. I will tell my china CPA how much I received in both US and China bank and he would calculate the income tax due, I will then wire him my tax payment and then he will re-direct my payment to the tax department. I have hit my annual limit of currency exchange of USD50k, and now the bank won't exchange the money for me, even though I told them I need RMB to continue to pay my tax. my question are:
1)I am working for a rep office, do I need to pay tax even though my pay is from headquarter in US.
2)is it legal for me to get paid in USD from the head quarter in US? or should I be getting paid by the rep office in RMB?
3)since I hit my foreign currency limit of USD50k. peoples are telling me to use friends ID to get my RMB, or exchange with people that wants USD to get more RMB for myself outside the bank, is it legal?
4) what is the legal way/procedure to go over the foreign exchange limit of USD50k.
5)I heard from other people that if I get my salary paid in RMB from the rep office in shanghai, the rep office will incur/have to pay 17% tax on everything they spend (including the salary they pay me), is that right?? even though I am paying income tax on my salary, but rep office has to pay additional 17% on it as well??
