Updated Social Insurance and Individual Income Tax Regulations in China
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Welcome to ChinaInvest.biz Magazine - August 2011 Issue

Klako Group presents ChinaInvest.biz - a monthly magazine providing insight into investment, tax and operational issues for foreign companies entering and expanding throughout China.

With the issuance of the Social Insurance Law reform in July 2011 and the Individual Income Tax reform in September 2011, the Chinese  government has imposed  more stringent social obligations in order to unify the social insurance system and to rectify the tax rates. In this issue we aim to outline these new regulations as it is important to understand the obligations imposed on both the employer and employee, in addition to the differences imposed between Chinese nationals and foreign nationals.

We hope this issue can clarify any uncertainties companies may have in their HR structures.

Labor Law is a relatively new phenomenon in China, with the first comprehensive law passed
in 1994. The new law, adopted by the National People’s Congress (NPC) on 29th June 2007,
looked to redress some of the poor working conditions found in China, particularly for the
average worker. Prior to the passage of this law, most Chinese employee’s in small-medium sized
firms lacked employment contracts. Morever, they were short-term, giving employers the flexibility to
frequently bring in a new, often cheaper hires whenever they saw fit.


Updated Social Insurance and Individual Income Tax Regulations in China

For Foreign Invested Enterprises (FIEs) looking to enter or already established on the Chinese market an understanding of the common employment and tax practice is significant. The newly adopted Social Insurance Law which came into effect on 1st July 2011 and the new Individual Income Tax which will come into effect on 1st September has been designed to provide a more “employee-friendly” environment. It is important for all companies (inside and outside of China) to understand their rights in terms of the new obligations in order to remain in compliance.

To read the full article, please click here to view the magazine (PDF file)

If you require assistance with the above subject, please contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

All information in this report is verified to the best of our ability and is assumed to be correct at time of release; however, Klako Group does not accept responsibility for any losses arising from reliance on the information provided within.


Free Consultation with China and Hong Kong Legal & Tax Advisors


The directors of Klako Group will be travelling throughout the year to meet with partners and clients and to participate in trade and tax-related events. Should readers or clients of the firm wish to meet our directors face to face during their trips to discuss matters concerning China, Hong Kong and/or Singapore business investments, please contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Appointments will be made on a first come, first serve basis. The visits of our directors provides an excellent opportunity to all our readers to discuss first hand their own investment potential, opportunities and legal/tax updated for China, Hong Kong and Singapore in detail.

 

Below is the tentative scheduling for 2011.

September 13th-17th 2011: London, England

September 26th-30th 2011: Germany

October 12th-31st 2011: India, France, Turkey

To view the full schedule, please click here (PDF file)