IIT Planning and Risk Control for Expatriates (Including HK, Macau and Taiwan) in China

Transcription

1 IIT Planning and Risk Control for Expatriates (Including HK, Macau and Taiwan) in China Interpretation and Response to the Latest Policy Development Speakers (Bolivia Cheung) (Salas Xu) Date 14 Nov, 2018 / Shenzhen 16 Nov, 2018 / Guangzhou

2 The new regulations for the implementation of Individual Income Tax Law of the People s Republic of China (draft for comments) has released for public consultation on 20th Oct Under the new tax law, will the method still work if foreigners have departed from China for over 30 consecutive days income tax has been amended, which of the pretax deduction subsidies could be used and which will - visions which have been added to the new individual tax income law play their role in combination - Taiwan) as well as into the issue of risk management under the storm of tax inspection in combination an expert in human resources service, will introduce to you contents on interpretation of and response Who Should Attend? Tax Director/Manager, Financial Director /Manager, HR/Salary Manager, Foreigners (including HK, Macau and Taiwan)

3 Course Outline (Bolivia Cheung) Analysis on and Response to Hot Issues with Foreigners (including HK, Macau and Taiwan) under the New Tax Law 01. Under the new tax law, foreigners (including HK, Macau and Taiwan) become Chinese tax residents as long as they have lived within the territory of China for 183 full days. So shall they pay Chinese tax (worldwide tax) on their overseas incomes of the current year? Shall they pay 20% of Chinese individual income tax on their overseas investments (incl. transactions of housing properties and stocks), even on winning the lottery? 02. Would foreigners application for residential permit in China lead to the payment of Chinese tax on their overseas incomes? 03. How do we delimit the 183 days? Shall the very day of exit or entry be counted as one day? Shall the period of touring and family visit in mainland China be counted towards the 183 days? How do we query the exact number of days one has stayed within the territory of China? 04. What is so-called domicile? Would the foreigners (including HK, Macau and Taiwan) who and required to pay individual income tax on their overseas earnings? 05. Will the method still work if foreigners have departed from China for over 30 consecutive 06. Shall the salaries paid overseas for foreigners who work within the territory of China be considered as domestic or overseas incomes? Why does it no longer work by using overseas Administration of Taxation of China acquire relevant information? 07. What are the other tax-free deductions given that the previous tax-free allowances (such as housing and food allowances) for foreigners have been annulled under the new tax law? How should the companies amend their employment contract?

4 08. What are the risks to arise from companies withholding fewer individual income taxes? What are the risks for employees? 09. Under the new tax law, corporate employers, as the obligors of withholding individual income taxes, shall withhold the taxes; employers, as tax payers, shall perform annual settlement during March 1 to June 30 of the next year. What issues shall employers and employees attach attention to? 10. What are the possible consequences if individuals fail to declare their overseas earnings on which the Chinese individual income tax shall be imposed? Will they be imprisoned? Why was Ai Weiwei exempt from being imprisoned in his tax case while Liu Xiaoqing was imprisoned? What are the differences between both cases? 11. Can the taxation planning for avoiding double taxation or CEPA safeguard long-term foreign residents in mainland China from paying Chinese tax? 12. According to media coverage, the tax rate of Fan Bingbing and other celebrities has risen sharply from 6.7% to 42%. How was it calculated? (Bolivia Cheung) Impacts of CRS Implementation in Mainland China, Hong Kong and other Regions and Risk Control 01. How has CRS become a fatal weapon towards tax avoidance in overseas investments of senior executives and high-income populations? 02. CRS/AEOI has been implemented. Some countries/regions including Hong Kong have December 31, 2017 to State Administration of Taxation of China. Does it make any difference to people with bank accounts, investment insurances and stock investments overseas? Why do people who have obtained foreign identity and abandon their Chinese nationality remain to State Administration of Taxation of China. 03. How would overseas banks deal with your no response to their question of what tax resident you are?

5 How will the newly added anti-tax avoidance provisions play their role in combination with CRS/AEOI? (Salas Xu) Interpretation of the New Policy on Superintendence over the Employment of foreigners (including HK, Macau and Taiwan) in Mainland China 01. Consequences of annulling the employment permit of foreigners (including HK, Macau and Taiwan) on their employment in mainland China 02. Can foreigners (including HK, Macau and Taiwan) be employed in mainland China without paying social insurances? 03. What are the possible consequences of applying for a residential permit of the mainland on foreigners (including HK, Macau and Taiwan)? 04. (Bolivia Cheung) Founder and Director, BC Training Co Ltd (FCCA and FCPA)

6 Bolivia has over 20 years of experience on China tax and business advisory. She joined KPMG in 1996, promoted to partnership in 8 years and retired from tax partner in 2011 after working in KPMG for 15 years. She frees up herself for training, education, free-lance consultancy projects and charitable activities, and completed the MA in Practical Philosophy, her second master degree. Bolivia has stationed in Guangzhou and Shanghai for over 8 years which means a lot of practical experiences in dealing with problems and issues of taxpayers. Bolivia is the member of ACCA China Expert Forum, Member of Working Party on Seminars of Accountancy Training Board of Hong Kong Vocational Training Council, Member of the Customer Liaison Group for SMEs of the Trade and Industry Department of the Hong Kong Special Administrative Region, part-time lecturer on China Tax at the University of Macau, HKU SPACE, Xiamen National Accounting Institute and Beijing National Accounting Institute; and has been the Steering Team of ACCA Southern China from 2004 to 2017 and the Vice-chairperson of the Board of Directors of Sowers Action (a charitable organization in Hong Kong) from 2012 to 2016 and member of the School Management Committee of Sowers Action HuaGuang High School for Girls in Nanning, Guangxi since (Salas Xu) Expert in Social Insurance and HR Outsourcing Salas is the leading expert in social insurance study and handling strategy in South China. He is well known for the risk management strategy of Limited Compliance. He is helping a great amount of leading companies in China stay on top of the latest policy development in Social Insurance Tax Reform. He is the founder of PEO Group, currently in charge of all PEO business administration in Great China. He has extensive experience in employment law, HR management & risk management, etc. He is also a regular speaker in various business events and is invited frequently by organizations to assist them with the employment and tax projects. He is also a popular column writer for HR730, China s famous employment newsletter. Salas holds Master degree in Marketing & Management of the University of Loughborough, UK.

7