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7969
Joined: 26 Mar 2003
Posts: 5782
Location: Coastal Guangdong
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 Posted: Tue Sep 20, 2011 10:59 pm Post subject: |
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| Well my crystal ball's in the repair shop right now so I can't make any predictions on what might happen, but if this new pension deduction is going to cost me anywhere near as much as my current income tax deductions . . . then I've got no problems with it. |
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samhouston
Joined: 17 Jan 2007
Posts: 418
Location: LA
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| Posted: Wed Sep 21, 2011 10:14 am Post subject: |
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| MisterButtkins wrote: |
| Has anyone's boss mentioned this to them? |
I asked my management and as yet no one has heard anything about this. |
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DosEquisX
Joined: 09 Dec 2010
Posts: 361
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| Posted: Fri Sep 23, 2011 2:49 am Post subject: |
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People have told me that many just spit at the Chinese tax laws and blow them off entirely, pay money under the table to some big shot politician or end up getting some sort of exemption written into the law. Not sure how true it is, but it wouldn't surprise me to see a small fry or two slip under a radar with 1.5 billion blips on it.
I won't be spending much more time in China anyway. Real pain in the rear for people who are staying here long-term though. |
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wangdaning
Joined: 22 Jan 2008
Posts: 3154
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| Posted: Fri Sep 23, 2011 3:38 am Post subject: |
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It is very odd to see people who say it is going to cut the employment rates. The assumption is that it will cost too much for the native speaker. Well, aren't there threads littered about with posting saying that the employer actually has all this cash but is keeping the salary low?
I think in the end this is going to be very difficult to enforce. Most places will skirt it and some serious institutions will bite the bullet and pay. Otherwise, business as usual.
As always, just my opinion. |
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eslteach
Joined: 28 Sep 2010
Posts: 94
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| Posted: Sun Sep 25, 2011 3:44 pm Post subject: |
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Why is the title of this thread "What Impact?"
Was it really that difficult to make an attempt at being specific. |
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SahanRiddhi
Joined: 18 Sep 2010
Posts: 267
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| Posted: Sun Sep 25, 2011 6:57 pm Post subject: |
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| The vague title was intended to ward off arseholes. Looks like it didn't work. |
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dean_a_jones
Joined: 03 Jul 2009
Posts: 1151
Location: Wuhan, China
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| Posted: Mon Sep 26, 2011 12:28 am Post subject: |
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From SCMP:
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Beijing may delay new tax on expats
Respite on the cards after local governments say they have not been given enough time to apply a rule that may disadvantage foreign workers
Beijing may again have to delay a new social security tax on foreign workers on the mainland after local governments complained that they had not been given enough time to implement it, said a person briefed by authorities on the issue.
The person also confirmed that all Chinese nationals from Hong Kong, Macau and Taiwan would be exempted from the new tax, removing anxiety caused by ambiguous wording in a version of the regulation released two weeks ago.
Foreign nationals working on the mainland - even if they are permanent Hong Kong residents - still need to pay the tax, which could be up to 11 per cent of their salaries to a maximum portion of 11,688 yuan (HK$14,266) a month, or 1,300 yuan, the person said.
Employers must also pay - up to 37 per cent of their foreign employees' salaries and also subject to a maximum of 11,688 yuan a month (4,100 yuan), in addition to an employee's own contribution, according to the regulation published by the Ministry of Human Resources and Social Security.
The rules raise questions about whether Hong Kong Chinese professionals will enjoy significant advantages over their expat colleagues as a result. Under the new regulation, it would be more expensive for a Hong Kong company to base a foreign worker on the mainland than to send a Hong Kong Chinese person.
Local governments, including those in Beijing, Shanghai and Guangzhou, have apparently been caught off guard by the new tax - which was scheduled to take effect on October 15, the person said.
"Since different provinces and cities have their own localised version of [tax] regulations, and since some of them are now saying they have just been informed of the new tax, I think it's unlikely that the new tax will be implemented on October 15 as originally planned," the person said.
At the moment, foreigners and Hongkongers working on the mainland can voluntarily pay social security tax to local accounts if they want to receive pension incomes from the mainland after their retirement. The ministry said earlier that the new rule was designed to protect the rights of foreigners so they could benefit from the social security system.
All expats from countries that do not have a bilateral exemption agreement with Beijing will be affected by the new tax. Only Germany and South Korea have agreed to such a deal with China. At least 10 other countries, including the US, Japan and Russia, are still in negotiations with Beijing on such an arrangement.
If an employer is found to have failed to make social security contributions for their foreign employees, they would face a maximum penalty of three times the outstanding contributions. The same penalty will apply to employers who hire foreign workers without a proper work permit.
"Nobody would like to pay an additional 50,000 yuan every year for an expat worker, so it is very good news for Hongkongers [Chinese] working there because they will have a clear cost advantage [over foreigners]," said William Cheung, a partner at Ernst & Young's human capital practice in Beijing.
"The impact on Hong Kong companies may not be huge. Not many of them keep foreign workers on the mainland."
Cheung nevertheless urged Hong Kong employers who have expatriate workers on the mainland to review immediately the implications of the new tax regulation. |
http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=09ef9085cdc82310VgnVCM100000360a0a0aRCRD&ss=china&s=news |
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xjgirl
Joined: 02 Feb 2010
Posts: 242
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| Posted: Mon Sep 26, 2011 4:25 am Post subject: |
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wow,
talk about milking the market for English dry. All those fines for English schools. Bribe or fine, that will be the choice administrators will face, and it can only mean for us that we'll continue to get squeezed and treatment and benefits will continue their downward trend.
Time to move methinks. |
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eslteach
Joined: 28 Sep 2010
Posts: 94
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| Posted: Mon Sep 26, 2011 4:51 am Post subject: |
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| SahanRiddhi wrote: |
| The vague title was intended to ward off arseholes. |
oh, right. that makes perfect sense. |
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W.V. Orman
Joined: 05 Jul 2005
Posts: 69
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| Posted: Tue Sep 27, 2011 3:54 am Post subject: |
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| eslteach wrote: |
| SahanRiddhi wrote: |
| The vague title was intended to ward off arseholes. |
oh, right. that makes perfect sense. |
I have to agree with eslteach. This is a topic I'd like to follow, but I can never remember the title of this thread. I end up running a search every time. Any way you could change the title? |
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SahanRiddhi
Joined: 18 Sep 2010
Posts: 267
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| Posted: Tue Sep 27, 2011 1:48 pm Post subject: |
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| I didn't actually start this one. |
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jayjjasper
Joined: 27 Aug 2011
Posts: 344
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| Posted: Wed Sep 28, 2011 2:50 am Post subject: |
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Sorry for the heading....thought it was easier to remember.
I heard from a friend at anther school that they are gearing up for this program and also from a Chinese HR person that hires foreigners that if a company doesn't participate they will be fined.
Other than heresy I have no real indication if or when this will become law, but, it seems that it is destine to be a reality.
Last edited by jayjjasper on Wed Sep 28, 2011 4:09 am; edited 1 time in total |
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7969
Joined: 26 Mar 2003
Posts: 5782
Location: Coastal Guangdong
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| Posted: Wed Sep 28, 2011 3:52 am Post subject: |
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| if the fine is some ridiculously low number (as it often is in things like this) then companies have a pretty easy choice to make. |
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xjgirl
Joined: 02 Feb 2010
Posts: 242
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| Posted: Wed Sep 28, 2011 6:18 am Post subject: |
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| If an employer is found to have failed to make social security contributions for their foreign employees, they would face a maximum penalty of three times the outstanding contributions. The same penalty will apply to employers who hire foreign workers without a proper work permit |
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jayjjasper
Joined: 27 Aug 2011
Posts: 344
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| Posted: Wed Sep 28, 2011 7:09 am Post subject: |
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Just received this notification.
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Montpelier will be holding a seminar to discuss the implications of the new taxation system for all foreigner employed in China. The new measures will be initiated in November of this year. The Seminar is free to attend, however due to limited seating admittance will only be allowed to expats who have registered with us via email ([email protected]) Full details are on the above flyer.
If you require more information, don't hesitate to contact us.
Kind regards,
Montpelier China |
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