Institute for China Studies

eBook: Payroll, Social Security, And Individual Income Tax In China

Tags: Publications, eBook, China, Human Resources, Payroll, Tax

  • Author: Dr. R.A. van Ostende
  • Title: A Comprehensive Guide to Payroll, Social Security and Individual Income Tax in China
  • Language: English
  • Format: PDF
  • Version: 2021
  • Pages: 48
  • Price: EUR 29,95

Personnel are an enterprise’ most valuable asset. Effective personnel management can strongly contribute to the continued success of an organization. China operates a mature framework of employment-related laws, regulations, and case law, of which entrepreneurs should have a profound knowledge.

This publication consists out of four sections.

Section one discusses the characteristics and legal requirements individual, collective and parttime employment contracts must meet in accordance with the PRC Labour Contract Law, as well as rules and regulations regarding work placement.

Section two provides an in-depth explanatory of China’s social security system and individual income tax framework, including the rights and obligations that apply to both employer and employees. Per 1 January 2019 China’s amended Individual Income Tax Law entered into effect. The amendment of the IIT Law 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.

Section three elaborates on the terms of employment and the role of the employment handbook as an extension of the employment relationship in which the company clearly communicates the companies’ policies to its employees and provides its employees with detailed discipline records and measures in order to have the necessary evidence in hand should there be a need to prove grounds of disciplinary actions.

Section four focuses on the regulatory framework and management of the processes related to labour disputes and termination of employment relationships.

This publication aims to support existing and aspiring entrepreneurs with the knowledge required to develop and operate an effective personnel management within their organizations. To support well informed business decisions the content of this publication is supported by detailed examples, illustrations and process flows.

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