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This issue of HR and tax alert discusses further guidelines on the implementation of the new social security obligations for foreign nationals working in Beijing (pdf, 200.8kb).

The September edition of Human resource & Tax alert (pdf, 558.7kb)  discusses the Interim Measures for the Participation of Foreigners Employed in China in Social Security Insurances, which will take effect from 15 October 2011. Key issues include social security contribution, potential benefits for foreigners and penalty for non-compliance.

In the August edition of Human resource & Tax alert (pdf, 610.3kb) , we look at the new regulation regarding the Individual Income Tax (IIT) treatment on stock incentive income in China; types of stock incentive schemes and relevant IIT administrative requirements; preferential tax calculation method; and criteria for qualifying incentive income.

The National People’s Congress has passed the latest version of the “Amendment to the Law of the People’s Republic of China on Individual Income Tax (pdf, 263.5kb) ” (the “Revised IIT Law”). This issue of Human Resource & Tax Alert summarizes the key changes that will be brought about by the Revised IIT Law and the major impacts on employees.

The Ministry of Human Resources and Social Security drafted the “Provisional Measures for the Expatriate Employees Making Social Security Contributions in China (Discussion Draft) (pdf, 152.7kb) ”. This issue of Human Resource & Tax Alert discusses the salient points of the Draft Measures.

This issue of Human Resource & Tax Alert discusses the key changes that the draft amendment to PRC Individual Income Tax (IIT) Law may bring about (pdf, 541.8kb) , as well as the areas where the IIT law may be modified to bring closer to international practices.

As part of the swift government response to the Sichuan earthquake, the State Administration of Taxation (the SAT) has issued a tax circular Guoshuifa [2008] 55 (Circular 55) on 21 May 2008 with the aim of providing simplified procedures to individuals making donations to aid efforts in earthquake stricken areas and to encourage taxpayers to make donations. This alert gives an overview of the simplified procedures in relation to earthquake donations (pdf, 135KB), summarizes the related implementation guidelines and procedures as well as highlights some areas of which tax withholding agents and individuals may want to take a note.

On 7 January, 2009, the Ministry of Finance and State Administration of Taxation issued Caishui [2009] No. 5. This circular states that Stock Appreciation Rights (SARs) and Restricted Stock (RS) shall be taxed according to Caishui [2005] No. 35 and Guoshuihan [2006] No. 902, which has the effect of aligning the tax treatment of SARs and RS with that of stock options. This alert gives an overview of the new circular and how it impacts the taxation of SARs and RS (pdf, 213KB), as well as highlighting actions required by employers and employees.