Understanding Payroll, Social Security, And Income Tax In China
E-Learning | Certificate Course
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.
Target audience
Human Resources professionals, corporate recruiters, and executives from all industries who have an interest in understanding how payroll, social security and individual income tax China is structured.
100% Online delivery
The course is designed to be completed fully online enabling students to continue working during the course.
Literature
The course covers all literature and reading materials essential to payroll, social security and income tax in China.
Duration
The standard duration of the course is 3 weeks based on an average time commitment of 4 hours per week.
Objectives
- 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.
- You will develop a better understanding of the development of current preferential tax policies.
Unit 1: Introduction
The first unit provides an orientation to the course and the online learning environment. The unit does not carry credits. You are encouraged to go through the materials at their own pace to get accustomed to the online medium.
Unit 2: Payroll specification
In this unit focus goes out to the standardized payroll calculation applicable to employees in China, addressing the components including in the calculation, starting from gross salary arriving at the net salary.
Unit 3: China’s social security system
In this unit the components of China’s social security system are discussed, the compliance requirements towards employees in regards of calculation, and contribution as well as the determination of the maximum and minimum contributions.
Unit 4: China’s individual income tax framework
In this unit China’s Individual Income Tax framework is discussed in detail, 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.
Unit 5: What is comprehensive income, annual settlement and to whom does it apply?
Per 1 January 2019 China’s amended Individual Income Tax Law entered into effect. According to the provisions of the IIT Law, individual residents are required to annually calculate their final income tax payable and must handle their annual settlement.
The amendment of the IIT Law has been a tax major reform, effecting changes in the calculation of taxpayers’ IIT liability, IIT withholding and how annual IIT reconciliation and filing is processed. Under the new comprehensive system special additional tax deductions have been introduced. The reform resulted in the establishment of a comprehensive and classified personal income tax system.
Unit 6: Taxation of income of resident individuals in China
Under China’s Individual Income Tax Law, nine income categories applicable to resident individuals have been defined, which are discussed in detail in this unit.
Unit 7: Pre-tax deductions, special additional deductions, and other deductions
When calculating the taxable comprehensive income for resident individuals the following personal deductions are allowed to be processed, which are discussed in this unit.
Unit 8: Transitional Treatment of Transitional IIT policies
The implementation of the new Individual Income Tax law resulted in a comprehensive review of existing tax policies, including policies on preferential tax treatment. As the new law includes provisions on topics which in the past were addressed in preferential policies, China’s State Administration of Taxation and Ministry of Finance jointly issued the Notice Regarding of Transitional Treatment of IIT Preferential Policy after the Revision of the IIT Law To clarify the transitional treatment of these preferential policies. In this chapter the impact of the transitional treatment of preferential individual income tax policies is discussed.
For the following topics of Annual one-time bonus, Income from equity incentives of listed companies and Non-taxable allowances and specific additional deductions for foreign individual transitional arrangements have been made under the new IIT law, whereas for the topic One-time compensation for termination of labor relationships and early retirement a processing method has been defined.
Unit 9: Taxation of income of non-resident individuals in China
China’s Individual Income Tax has defined how income of non-resident individuals are to be taxed. The means and methods to taxation are discussed in detail in this unit.
No specific prior education or knowledge about payroll, social security and individual income tax in China is required to be admitted to this course.
Assessment
Assessment is carried out through a series of written assignments to be completed at the end of each unit.
Certificate of Completion
A course certificate is issued upon the successful completion of the course.
Next: progress to the Diploma program
If you want to expand your knowledge even further, upon completion of this course you can continue your studies towards the “Employment Strategies in China” Diploma program. When you are admitted, you can submit an exemption request for the course that you have already obtained, and you will go through the entire program even faster.
Tuition Fee
Tuition fee for the entire course is EUR 499 to be paid in advance.
The tuition fee includes all necessary literature and study materials, guidance and support during your studies, free extension of the study duration (if required), and 1:1 contact with your course professor.
Start Date
Open enrollment applies to this course. You can start this course at a timing of your own convenience.
How we deliver value
Program Completion Benefits
Certificate
Upon successful completion of the course, you will earn a digital certificate of completion from the Institute of China Studies.
Note: After successful completion of the online program, your verified digital certificate will be emailed to you in the name you used when registering for the program. All certificate images are for illustrative purposes only and may be subject to change at the discretion of the Institute of China Studies.
Contact us
Would you like more information about the course and the admission requirements? Then request a free study consultation. Of course, free of charge and without obligation. This way you will learn more about the content of the course, the teaching materials, and the online learning environment.
Enroll today
Enroll today and develop essential skills and insights about understanding payroll, social security and individual income tax in China, which can be directly applied in your professional work environment.