Individual Income Tax
China implemented a new individual income tax law that adjusted tax brackets and modified residency rules. This had the effect of reducing the tax burden on low income earners. It also provided additional deductions for residents.
The individual income tax in China is calculated on an annual basis. Sky Executive withholds tax in advance on a monthly basis.
China requires companies to withhold social insurances’ contributions from their employees’ salaries. China has five different types of social insurances:
- Work-related injury
- Medical insurance
These insurances are funded through contributions from employees and employers. The state also contributes to social insurances.
The housing fund allows Chinese employees to save money toward the purchase of a home. Contributions are mandatory. The amount that is saved goes directly to the employee’s personal housing fund account, which is set up by the employer. The employer is responsible for making deductions from employee’s pay. When an employee joins or leaves a company, an account must be created, closed or transferred.
The rate of social insurances and housing fund contributions are subject to annual changes made by the Chinese Labor Bureau.
Labor Contract Drafting
We draft compliant employment contracts in Chinese and English for project-based, fixed term and open-ended employment terms.
We identify key candidates from across the globe and provide access to our extensive database of qualified candidates to find the right fit for your open positions.
Onboarding of New Employees
We handle all of the administrative and legal responsibilities associated with starting new hires.
Immigration and Visa Services
If you would like to place an employee from your existing company in a position in your new Chinese division, we can assist with this process. We can help you with every aspect of the visa process.
We will handle all payroll responsibilities, including remittance of social insurance and housing fund contributions.
Our experts will adhere to the latest tax regulations and provide reports showing your tax payments.
Our familiarity with Chinese labor laws allows us to expertly manage holiday and leave time and administer other benefits.
Legal and Human Resources Support
We provide ongoing legal and human resources support, consult with you on new issues that arise, ensure compliant day-to-day guidance on Chinese labor laws, and initiate termination procedures if an employment relationship is not working out.