Recently, various authorities in Mainland China (“PRC”) issued announcements to extend several Preferential Individual Income Tax (IIT) policies. To further benefit from such extension and save labor costs, it is necessary for employers to understand the policies from legal, compliance and tax planning perspectives, as well as making changes on internal management and regulations in order to mitigate the compliance and dispute risk.
Part One: Extension of the Preferential IIT policies
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Part Two: Deacons insights
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In view of complexity of laws, regulations and policies, employers should understand the trend of IIT development and the corresponding priorities to ensure compliance, adjust the compensation & benefits for employees where necessary and conduct the tax planning lawfully, not only to maximise the benefit for employees, but also to cope with the tax-related risks and challenges for the company.
The employment and tax teams of Deacons are highly experienced in the field of individual income tax of PRC and salaries tax of Hong Kong. We have extensive experience in providing one-stop services in human resources compliance and optimisation of payroll and tax structure. We are particularly experienced in the design and implementation of employee incentive plans (e.g., tax equalisation plan for cross-border employees and equity incentive plan) and dispute resolution in the context of cross-border dispatch and/or dual employment. In addition, our firm is experienced in cross-border wealth planning, immigration planning, design of family trust and tax planning. We will be pleased to extend our support at any time in case of needs.
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