Our collection of resources based on what we have learned on the ground

Resources

Q&A

What are the employer?s obligations to pay for mandatory benefits in China?

What are the employer?s obligations to pay for mandatory benefits in China?

In the monthly payroll process, employers are required to pay company contributions for all of their employees, as well as divert employees’ individual contributions from their paychecks to the Social Insurance Bureau. Based on central governme...

Q&A

How do human resources agencies lack in transparency of payroll processes hurt f...

How do human resources agencies lack in transparency of payroll processes hurt f...

Representative offices must recruit their Chinese employees through an agent (normally, a foreign enterprise services company), and such agents can also be quite useful for other foreign-invested entities on occasion. FESCOS generally have their own ...

Q&A

How are social insurance inspections carried out in China?

How are social insurance inspections carried out in China?

Social insurance inspections—and the penalties for being found out of compliance—are one major reason to ensure full accuracy in mandatory benefit contributions. Social insurance audit/inspection practices vary by city. In Shanghai, for e...

Q&A

How many different mandatory benefit types are there under Chinese law?

How many different mandatory benefit types are there under Chinese law?

The different types of mandatory benefit can be categorised as follows: Medical Unemployment Housing Fund* (Foreigners are not required to pay housing fund depending on the city), Work-Related Injury Pension Maternity

Q&A

What is a foreign enterprise services company in China?

What is a foreign enterprise services company in China?

Many foreign-invested companies and representative offices in China have a contract in place with a foreign enterprise services company (FESCO) for labor dispatch, payroll and/or additional services for Chinese Employees.

Q&A

What is 'hukou'?

What is 'hukou'?

A hukou stipulates an employee’s home city/country and can either be a rural hukou or an urban hukou, with the social insurance system applying only the latter.

Q&A

What services are provided by foreign enterprise services company besides payrol...

What services are provided by foreign enterprise services company besides payrol...

Some FESCOs carry out other services such as executive search work (headhunting) on behalf of their clients, which could create a conflict of interest between payroll clients (who supply confidential personal and salary information) and headhunting c...

Q&A

What does the Labor Contract Law stipulate about workers dispatched from foreign...

What does the Labor Contract Law stipulate about workers dispatched from foreign...

In the past, this directive has often been ignored and foreign enterprise services companies have been used to hire a wide variety of Chinese workers upon the client’s request. However, recent draft legislation regarding the obligation of emplo...

Q&A

What are the advantages and disadvantages of foreign enterprise services compani...

What are the advantages and disadvantages of foreign enterprise services compani...

The advantages of using foreign enterprise services companies are: lower risk than direct hiring hiring assistance during process of incorporation mandatory benefit payments in other cities The disadvantages thereof are: conflict of intere...

Q&A

What are the different requirements for claiming treaty benefits in China?

What are the different requirements for claiming treaty benefits in China?

The requirements for claiming treaty benefits in china differ on the base of the type of income: benefits from passive income must receive approval (which takes 20-50 days and is valid for three calendar years), while benefits from active income shou...

Q&A

What are the four categories that summarize the legal framework in regards to th...

What are the four categories that summarize the legal framework in regards to th...

The development of double taxation agreements for China investment by summarizing the legal framework are in four categories: Anti-avoidance foundations Qualifying as beneficial owner Claiming treaty benefits Reporting offshore transactions

Q&A

How do China?s anti-avoidance foundations affect taxes?

How do China?s anti-avoidance foundations affect taxes?

China’s general anti-avoidance rules (GAAR) were first introduced under the 2008 Corporate Income Tax (CIT) Law which provides that, where an enterprise’s taxable income is reduced due to its implementation of “arrangements that do ...

Filter By

Topic

Country

Type of resource

Language

Enquire for more information about our services, and how we can help solve challenges for your organization

Contact Us
The code is case-sensitive