Institute for China Studies

Understanding Payroll, Social Security And Income Tax In China

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Course Highlights

  • In this course you will learn how China’s payroll system is designed and salary is calculated.
  • You will develop an understanding of China’s social security system is designed, which components exists and how contribution is arranged.
  • You will gain in-depth insights in how the individual income tax framework is designed, understand the difference between a Resident and Non-Resident Taxpayer, Tax Residency and Taxability of income, and how it exactly impacts taxation borne by the employer and employee.
  • You will get insight into the different types of income components, how these are taxed, and understand tax deductions under China’s new Individual Income Tax Law.
  • The development of current preferential tax policies.

Course Description

In this course you will gain an in-depth understanding of China’s payroll system, its social security system and individual income tax framework, including the rights and obligations that apply to both employer and employees.

You will learn about the components of China’s social security system, the compliance requirements towards employees in regards of calculation, and contribution as well as the determination of the maximum and minimum contributions.

Per 1 January 2019 China’s amended Individual Income Tax Law entered into effect, which has been the largest reform of law and regulations concerning individual income tax in nearly forty years, effecting changes in the calculation of taxpayers’ IIT liability, IIT withholding and how annual IIT reconciliation and filing is processed. The reform resulted in the establishment of a comprehensive and classified personal income tax system.

You will gain in-depth insights in how the individual income tax framework is designed, starting with definition of resident and non-resident individuals under the relevant law and regulations. Next focus goes out to the determination of tax residency and taxability of income in China, followed by the determination of different types of income for individual taxpayers recognized under the new tax law.

You will develop an understanding of the tax deductions under China’s new Individual Income Tax Law, and how transitional preferential tax policies out of the old tax regime are handled going forward.

Tailor-made Literature

The literature and reading materials used in this course have been designed to ensure the latest developments in China related to the calculation and optimization of payroll, contribution of social security and individual income tax are reflected.

100% Online Delivery
The course is designed to be completed fully online enabling students to continue working during the course
Assessment is carried out through a series of written assignments to be completed at the end of each unit
The standard duration of the course is 3 weeks based on an average time commitment of 4 hours per week
Personal Assistance
Throughout the duration of the course you can contact your course professor for professional questions via the online learning environment
The course covers all literature and reading materials essential to payroll, social security and income tax in China
No specific prior education or knowledge about payroll, social security and individual income tax in China is required to be admitted to this course
Target Audience
Executives from all industries interested in personnel management in China
A course certificate is issued upon the successful completion of the course
Tuition Fee
Tuition fee for the entire course is EUR 299 to be paid in advance