|$663.40 (including GST)|
Did you Know?: Salaries paid in Singapore can also be taxable in China!
China government amended the Individual Income Tax (IIT) Law which took effect from 1 January 2019.
A major set of new IIT rules affecting foreigners were issued in mid-March which significantly changed the definitions under the China tax law for foreigners. Additionally, big data is now an effective tool for tax administration in China.
How will the new law affect expatriates working in China from a Singapore context? What are the common problems relating to secondment of staff to China?
In this highly practical workshop, the trainer will explain the important issues arising from China’s new IIT law and will demonstrate best practice approaches in overcoming these HR challenges, through the use of practical examples.
At the end of this workshop, you will:
Learn how to structure a tax effective package when sending staff to work in China
Issue 1: Who is Liable?
Before 2019, the Chinese employer is the withholding agent for IIT, including the IIT on salaries paid outside China. Hence, the China tax bureau could penalise the Chinese company. From 2019 onwards, the Chinese company is responsible to withhold the IIT on salaries paid in China while the individuals (including foreigners) should pay their own tax. The tax bureau can penalise the individuals for non-compliance.
Issue 2: Taxability on Offshore Salaries
China changed the definition of “day of residence”. The day of transit counts as zero and a whole day of 24-hour counts as one day. A foreigner without China domicile residing in China for no more than 90 days may be exempt from China IIT while under tax treaty, the tax exemption threshold is 183 days of presence.
Salaries paid outside China should be combined to calculate IIT if the foreigner cannot be exempt from IIT. There are formula 1, formula 2 and formula 3 for foreigners with onshore and offshore salaries. Both salaries should be combined and applied the new time apportionment method, which is totally different from the past.
Issue 3: Worldwide Tax and Tax Break
According to Article 1 of the Law, an individual without China domicile spending 183 days in a calendar year becomes a China tax resident and will be subject to China IIT on worldwide income. Tax break is still possible for foreigners to avoid worldwide tax.
Issue 4: Permanent Establishment
Singapore Co has a few engineers who frequently travels to China to support the Chinese subsidiary. All salaries are paid in Singapore. The number of days of residence / presence exceeds the tax exemption threshold.
Issue 5: Tax Exempt Allowances
Six specific additional deductions are introduced for all individuals, namely: children education, continued education, major illness medical expenses, mortgage interest, rental expenses and support of the elderly. Expatriates can opt to use the old method and enjoy the eight tax exempted allowances. Foreigners can opt the previous eight tax exempt allowances during the three-year transitional period.
Issue 6 : Secondment
Issue 7: Tax Withholding and Annual Filing
Issue 8: Salaries vs Service fee
Issue 9: Tax Exemption under Treaty
Issue 10: Anti-avoidance
Issue 11: Annual bonus
Tax resident can opt to use the special method to calculate annual bonus during the three-year transitional period. Non-resident has a different time-apportion method to calculate the IIT on bonus?
Issue 12: Other Issues
FCCA , FCPA
Bolivia has more than 20 years of experience in China tax and business advisory. She had spent 15 years in KPMG, before retiring as a Tax Partner in 2011.
Having stationed in Guangzhou and Shanghai for over 8 years, she has vast experience in helping clients deal with their tax problems and challenges
Bolivia is currently a member of the ACCA China Forum, and was also in the Steering Team of ACCA Southern China from 2004 to 2017. She is a Member of Working Party on Seminars of Accountancy Training Board of Hong Kong Vocational Training Council, and also a Member of the Customer Liaison Group for SMEs of the Trade and Industry Department of the Hong Kong SAR. She also lectures on China Tax in Universities and Institutions in Macau, Hong Kong and China.
Prices shown are in SGD and inclusive of 7% GST but do not include handling & shipping (if applicable)
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