Expatriates working in China Shall Participate in Chinese Social Insurance Schemes

According to Article 97 of Social Insurance Law applied since July 1st,2011, expatriates working in China shall participate in social insurance schemes.
Lee & Lee Associates Comments: The implementation of Social Insurance Law obviously will increase the operation cost of employers who hires expatriates…

No Duplication Tax Payment On The Transfer Of Restricted Shares Of Listed Companies By Enterprises Any More

According to the announcement of SAT on 7 July 2011, enterprise shall pay corporate income tax on taxable income arising from transferring restricted shares of listed companies.  Regarding transferring of the restricted shares of listed companies the enterprise holds on behalf of individuals to the actual owners, if the balance after tax is concerned, the actual owner need not pay individual income tax…

Time of New Individual Income Tax Law Is Around the Corner

New law of the People’s Republic of China on Individual Income Tax is released on June 30, 2011 by 21st Session of the Standing Committee of the Eleventh National People’s Congress.
According to new law, for income from wages and salaries, the deduction amount is increased to BMB 3,500 and expands the tax-paying scope of low grade rate and high grade rate through adjusting tax rate structures…

No Need to Apply for Ex-Approval For Delay Payment under Trading Credit Now

According to a Notice issued by the State Administration of Foreign Exchange (hereinafter referred to as the “SAFE”) on 23 May 2011, management measures for some foreign exchange transactions under capital accounts are adjusted. These adjustments relax the management on some foreign exchange transactions to certain degree by comparison with the rules before…

For Employee’s Annual One-off Bonuses, Individual Income Tax Partially Borne by Employers Shall Also Be Taxed

According to a notice issued by SAT on April 28th 2011, for employees’ annual one-off bonuses, individual income tax partially borne by employees is regarded as employee’s income and shall be included in employee’s income to pay individual income tax.
Lee & Lee Associates Comments:  Employee shall pay individual income tax for the individual income tax that is borne by employer has been regulated before and what the notice above clarifies is the detail method of calculating…