Shanghai Expats
Housing

Company Requires Fapiao for housing expense

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Julie Original post #1
So here’s my dilemma: I recently started working at the same company as my husband and we will each be assigned a housing allowance. However, he has an older contract with the company and does not need to submit a fapiao. We have been living comfortably at our apartment for two years now. My contract on the other hand has the stipulation that I must submit a fapiao monthly. I’ve spoken extensively to both my company and my landlord and it seems there is no way to get an official fapiao through my landlord or the agency that my landlord originally used to list the apartment. They simply don’t want to officially register this place as a rented apt. with the city govt. and be forced to pay the taxes (even though we offered to pay all of the associated taxes). We don’t want to move…but we can’t simply turn down the housing allowance that I was offered. Is there anyway to get a fapiao outside of official channels? My company does not seem too concerned that every last detail is spelled out on the fapiao, so it is my assumption that if I can procure a fapiao in the amount of my housing allowance, regardless of the source, I will be able to collect. Any and all suggestions are extremely welcome. On a side note, by how much do my housing options shrink as the result of the fact that I will need a fapiao from whatever apt. we move to?

5 Replies

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CoolRunner #2
Just get to one of real estate agencies nearby and they will help you sort it out easily…only thing you need to do is paying 5% of the amount you will ask them to write on fapiao. But you can always negotiate with them to lower the 5% rule… I pay hardly 2% for such fapiaos….
K
KenXu #3
If your company requires a Fapiao, it is normally, so they can claim it back as a tax deduction. That is normal. What it means is the rent will be upped about 5%. Tax is 5.1% actually, however, it seems the landlord does not want to give a Fapiao, so you are between a rock and a hard place. My suggestion is to DEMAND a Fapiao from your landlord, as your Company reqiires it. IF NOT, you will report them to the Tax Bureau, then DO IT. I don’t think you have any other choice, then move out. You can, of course get a fake Fapiao, but that is not a good road to go down. By the way agents are required to register a signed contract with the Tax Bureau so tax can be collected. This is a big crack down, and fair enough. Did you have a signed contract, and did your agent register it? Will reply your p.m. shortly.
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TimBYD #4
Demand fapiaos / reporting them to the tax bureau runs the risk of your apartment deposit vanishing into thin air. I’ve been there in this same situation. Stay on friendly terms with the scumbag landlord and move out ASAP giving whatever period of notice necessary, making sure your get your deposit back. Get new apartment with fapiaos written into the contract, whether paid by the landlord or by you. Staying on in the same apartment will turn this into an ongoing hassle that you don’t need. Report the landlord to the tax bureau once you’ve moved out if you’re feeling particularly vengeful / want to protect future tenants.
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DG187 #5
It’s not surprising. As one poster said, without a fapio, the company cannot write it off as an expense. That applies to everything, not just rent. So business expenses require a fapio. Not sure what to tell you about your situation, other than its not abnormal to need one. You can find plenty of people to give fake fapios, but as this is likely a pretty large expense that your company will be writing off monthly, I would expect it to get some level of review.
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Julie #6
Thanks all for the replies. Lots of good info, though it seems I’m most likely going to be moving. Have made contact with the inimitable Betty to hopefully find a new place. I would say that our landlord has been overall decent (quick to make fixes, speaks good english and has had pretty lenient contract terms) so we aren’t looking to be spiteful. Our apartment used to be their home before they upgraded to make way for their littl’un so they have simply wanted to make a bit of bank while hopefully having a non-destructive tenant. It worked well for two years, but its unfortunate that my wife and I’s circumstances have changed in that we now need a fapiao. When we rented two years prior we had specifically told the landlord that we didn’t require one. I can only hope that our next landlord will be as decent. It’s hard to really blame it on anyone other than to chalk it up to life and this is China. Trying to explain a fapiao to anyone back in the US is always fun: “It’s like a receipt, but not really. It’s for the government. And oh yeah, its also a lottery scratch ticket.” Hopefully a good agent can make our move easier and sort out all of these logistical things for us.

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