FBCS is delighted to invite you to learn more on Social Insurance Contribution for foreign employees in Shanghai and tax-related matters concerning Tax Residents and Non-Tax Residents in China.

Please note that this is a hybrid event and you can attend the training either onsite or online. The link to the event will be delivered by email one day before the training.

Topic 1. Social Insurance Contribution for foreign employees in Shanghai

All foreigners working in China are subject to the social Insurance contributions. Shanghai has been an exception because of a specific principle issued by Shanghai Municipal Human Resource and Social Security Bureau in 2009 stating that foreign employees in Shanghai may choose not to contribute to the social insurance payments. In practice, employers and the foreign employees have often reached an agreement to opt out of the social insurance contribution.

The above mentioned principle known as "The 2009 Shanghai Notice" was expired on August 15th, 2021, and from now on, all foreign employees in Shanghai are subject to the social insurance contributions. Employer and employee shall jointly pay social insurance contributions on monthly bases. Employee's individual portion equaling to 10,5% is withheld by the employer from the monthly salary. Respectively, employer's monthly contribution is approximately 27 %.

Topic 2. Tax-related matters concerning Tax Residents and Non-Tax Residents in China

This presentation is prepared from PRC Individual Income Tax (IIT) Law and Regulations perspective and aimed to address common misunderstandings regarding Tax Residents and Non-Tax Residents in China (e.g. China-sourced income, non-taxable benefits-in-kind, taxation on social insurance contributions within and outside of mainland China, etc.). The topics covered are the following:

1) Differences in tax treatment for Tax Residents and Non-Tax Residents

a) Income subject to PRC IIT

b) Applicable tax exemptions and qualified deductions

c) Bonus and equity-based income

d) IIT adjustments through self-reporting in case of tax residency status change (Tax Residents to Non-Tax Residents)

2) Tax-related matters to handle before leaving China

3) Q&A

Who should attend the training?

• HR professionals taking care of foreign employees' HR matters
• Finance professionals being interested in employer's cost implications
• Foreign employees working under local employment contract and being interested in their individual cost implications

The seminar is provided by Shanghai Foreign Service (Group) Co. Ltd. (FSG) that is a leading HR service provider in China, established in August 1984. Currently, FSG has provided highly efficient services for 3 millions employees in over 50,000 enterprises. In fact, 85% of the Fortune Global 500 enterprises in China have chosen FSG's services. As a wholly state-owned corporate, FSG has a good relationship with government. Therefore, it can provide its customers with more accurate analysis and the better explanations on wide variety of policies.