China
Cough it Up: A Guide to China’s New Foreigner Social Security Tax
This summer China passed a new law , which technically went into effect on October 15, requiring foreign workers and their employers to contribute to a social security fund. To help foreigners living in China better understand what the new social security tax means, China Real Time has compiled a list of facts that the Ministry of Human Resources and Social Security has revealed thus far: 1. Pricing Every city will have its own pricing scheme, requiring companies to pay a percentage of an employee’s salary to the social security fund. The individual contribution will hover around 10% of the employee’s salary. The Ministry of Human Resources and Social Security recommends that every individual check with a local bureau to determine rates. For Beijing, companies will contribute the following percentage based on an employee’s salary per month, with a salary cap of 12,603 yuan ($1,981): 2. Start Date The law will be implemented by year-end and money will be collected according to an Oct. 15 start date, requiring retroactive payments. 3. Medical Insurance The Ministry of Human Resources and Social Security says the medical insurance plan will allow foreigners to choose which hospitals they’d like to go to. An unspecified percentage of expenses will be reimbursed using the funds from the account. Officials have not yet specified whether insurance will cover a foreigner beyond China’s borders. Upon leaving China, foreigners will be able to collect the unused portion of the individual contribution to the medical insurance fund. Corporate contributions cannot be collected. 4. Maternity Insurance The Ministry has not yet specified if maternity insurance will cover multiple births 5. Unemployment The Ministry said it is working with employment and visa agencies to devise a plan that will allow unemployed foreigners to collect. 6. Pension Pensions can be collected if the foreigner has contributed for 15 years. They will be paid until death. The Ministry has not specified a retirement age for foreigners or how foreigners will collect the fund. Upon leaving China, foreigners will be able to collect the individual contribution to the retirement fund. Corporate contributions cannot be collected. 7. Contract Workers Contract workers and workers who would be forced to pay on behalf of the company and themselves can visit the local bureau of the social security office to have their cases reviewed. The Ministry will reconfigure payments for individuals. – Laurie Burkitt and Kersten Zhang
This summer China passed a new law , which technically went into effect on October 15, requiring foreign workers and their employers to contribute to a social security fund. To help foreigners living in China better understand what the new social security tax means, China Real Time has compiled a list of facts that the Ministry of Human Resources and Social Security has revealed thus far: 1. Pricing Every city will have its own pricing scheme, requiring companies to pay a percentage of an employee’s salary to the social security fund. The individual contribution will hover around 10% of the employee’s salary. The Ministry of Human Resources and Social Security recommends that every individual check with a local bureau to determine rates. For Beijing, companies will contribute the following percentage based on an employee’s salary per month, with a salary cap of 12,603 yuan ($1,981): 2. Start Date The law will be implemented by year-end and money will be collected according to an Oct. 15 start date, requiring retroactive payments. 3. Medical Insurance The Ministry of Human Resources and Social Security says the medical insurance plan will allow foreigners to choose which hospitals they’d like to go to. An unspecified percentage of expenses will be reimbursed using the funds from the account. Officials have not yet specified whether insurance will cover a foreigner beyond China’s borders. Upon leaving China, foreigners will be able to collect the unused portion of the individual contribution to the medical insurance fund. Corporate contributions cannot be collected. 4. Maternity Insurance The Ministry has not yet specified if maternity insurance will cover multiple births 5. Unemployment The Ministry said it is working with employment and visa agencies to devise a plan that will allow unemployed foreigners to collect. 6. Pension Pensions can be collected if the foreigner has contributed for 15 years. They will be paid until death. The Ministry has not specified a retirement age for foreigners or how foreigners will collect the fund. Upon leaving China, foreigners will be able to collect the individual contribution to the retirement fund. Corporate contributions cannot be collected. 7. Contract Workers Contract workers and workers who would be forced to pay on behalf of the company and themselves can visit the local bureau of the social security office to have their cases reviewed. The Ministry will reconfigure payments for individuals. – Laurie Burkitt and Kersten Zhang
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Cough it Up: A Guide to China’s New Foreigner Social Security Tax
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
China
Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
Italy ratified an upgraded Double Tax Agreement (DTA) with China, effective in 2025, to reduce tax burdens, prevent evasion, and enhance investment. The DTA introduces modern provisions aligned with international standards, targeting tax avoidance and improving dispute resolution for Italian businesses.
Italy recently ratified the upgraded Double Tax Agreement (DTA), which will finally take effect in 2025. This agreement was signed in 2019 and was designed to reduce tax burdens, prevent tax evasion, and promote Italian investment in China.
On November 5, 2024, Italy’s Chamber of Deputies gave final approval to the ratification of the 2019 Double Tax Agreement (DTA) between Italy and China (hereinafter, referred to as the “new DTA”).
Set to take effect in 2025, the new DTA is aimed at eliminating double taxation on income, preventing tax evasion, and creating a more favorable environment for Italian businesses operating in China.
The ratification bill for the new DTA consists of four articles, with Article 3 detailing the financial provisions. Starting in 2025, the implementation costs of the agreement are estimated at €10.86 million (US$11.49 million) annually. These costs will be covered by a reduction in the special current expenditure fund allocated in the Italian Ministry of Economy’s 2024 budget, partially drawing from the reserve for the Italian Ministry of Foreign Affairs.
During the parliamentary debate, Deputy Foreign Minister Edmondo Cirielli emphasized the new DTA’s strategic importance, noting that the agreement redefines Italy’s economic and financial framework with China. Cirielli highlighted that the DTA not only strengthens relations with the Chinese government but also supports Italian businesses, which face increasing competition as other European countries have already established double taxation agreements with China. This ratification, therefore, is part of a broader series of diplomatic and economic engagements, leading up to a forthcoming visit by the President of the Italian Republic to China, underscoring Italy’s commitment to fostering bilateral relations and supporting its businesses in China’s complex market landscape.
The newly signed DTA between Italy and China, introduces several modernized provisions aligned with international tax frameworks. Replacing the 1986 DTA, the agreement adopts measures from the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project and the OECD Multilateral Instrument (MLI), targeting tax avoidance and improving dispute resolution.
The Principal Purpose Test (PPT) clause, inspired by BEPS, is one of the central updates in the new DTA, working to prevent treaty abuse. This clause allows tax benefits to be denied if one of the primary purposes of a transaction or arrangement was to gain a tax advantage, a move to counter tax evasion through treaty-shopping.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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Business
China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
China’s new home prices fell for the 17th month in October, declining 0.5% from September, but slowing, indicating potential market stabilization amid supportive measures. Second-hand home prices showed mixed trends.
Decline in China’s Home Prices Stabilizes
China’s new home prices continued to decline in October for the 17th consecutive month, although the drop showed signs of slowing. Recent support measures from Beijing appear to be inching the market toward stabilization, as evidenced by a lighter decline compared to earlier months.
Monthly and Yearly Comparisons
According to the latest data from the National Bureau of Statistics, new home prices across 70 mainland cities fell by 0.5% from September, marking the smallest decrease in seven months. Year-on-year, prices dropped by 6.2%, slightly worse than the September decline of 6.1%. In tier-1 cities like Beijing and Shanghai, prices decreased by 0.2%, a smaller fall than 0.5% in the previous month.
Second-Hand Home Market Trends
Second-hand home prices in tier-1 cities experienced a 0.4% increase in October, reversing a 13-month downward trend. Conversely, tier-2 cities observed a 0.4% drop in second-hand prices, while tier-3 cities faced a similar 0.5% decline. Overall, recent trends indicate a potential stabilization in China’s property market.
Source : China’s new home prices slow 17-month decline after support measures kick in
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