Taxpayer: Yes ,I am the board president of ABC company. I would like to know something about paying my personal income tax.
Tax official: Can you explain you conditions in detail ? I have an obligation to keep secret for the taxpayer .
Taxpayer: I obtain my income in the form of director's fees and dividends .
Tax official: Do you have any management position?
Taxpayer: No. But the general manager has always been abroad, so I am actually responsible for the operation in China.
Tax official: According to what you said, in fact you play the role of general manager.
Taxpayer: What do you mean ?
Tax official: I mean that your personal income actually includes three parts: director's fees, dividends and salary of general manager.
Taxpayer: How do I pay tax on it ?
Tax official: Can you provide the regulation of your company and the agreement of board of directors ?
Taxpayer: Yes , I can .
Tax official: Are you American? Well, the dividends obtained by a foreigner are exempt from taxation .
Taxpayer: Oh, that is good.
Tax official: The leftparts of your income should be divided into director's fees and salaries.
Taxpayer: How do you determine the salaries? After all, I do not receive salaries directly from my company.
Tax official: We can refer to the salary level in the same area, in the similar industry or in the enterprise with similar scale.
Taxpayer: I know a little about levying tax on salary, but how do I pay tax on director's fees?
Tax official: The director's fees are regarded as remuneration and taxed in the way remuneration is taxed.
Taxpayer: What is the difference between the tax on salary and the tax on remuneration?
Tax official: They are different in tax rate and deduction.
board president 董事长
personal income tax 个人所得税
obligation 职责， 责任
keep secret 保密
director's fee 董事费
dividend 分红， 资本红利;股息
the general manager 总经理
in facts 事实上
board of directors 董事会
refer to 参考， 参照
remuneration 酬劳， 报酬