Payroll and HR in China

Local Information

Local Time (LIVE):12:54 PM
Local Currency:$1 = ¥6.96
Business Language(s):Mandarin & Cantonese (main languages)
Tax Year Dates:1st January – 31st December

 

As the fastest growing emerging market, China offers vast prospects to businesses looking to expand overseas. With an entrepreneurial economy, China is a great place to do business thanks to its low costs and population of 1.3 billion people.

China is well recognized as the manufacturing base of the world. Today, international businesses are welcomed with open arms in major sectors including energy, technology, healthcare and finance.

Despite the endless opportunities international expansion brings, we understand it isn’t always easy – especially with language barriers getting in the way. Fortunately, FMP Global can help make your transition overseas easier. We’re experts in Chinese payroll and HR and can help you maintain compliance with Chinese regulations and timelines.

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Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

Employer Must-Dos

In China, the following reports must be submitted to strict deadlines.

  • VAT Returns
  • Corporate Income Tax Return

Payroll in China

What tax considerations are there?

China uses a progressive tax system for individual income tax (IIT) from 3% to 45%. Residents of China are subject to income tax on worldwide income by category. These nine categories are: employment income (i.e. wages and salaries), remuneration for labour services, author’s remuneration, royalties, business income, interest, dividends, and profit distribution, rental income, income from transfer of property and incidental income. Non-residents are taxed separately by category on a monthly/transaction basis.

There is also corporate income tax (CIT) to consider, which is deducted at a standard rate of 25%. This can be reduced to 15% if a business is within an industry encouraged by the Chinese government.

HR in China

What are the regular working hours in China?

The Chinese government enforces business hours of 44 hours a week under the Labor Law of People’s Republic of China, for no more than 8 hours a day.

Regular working hours are Monday to Friday, usually from 08:00 – 17:00, 08:30 – 17:30 or 9:00 – 18:00. Saturday and Sunday are usually days off.

Termination

Employee termination in China can be a very lengthy and complex process, no matter how serious the reason for letting an employee go. This is because Chinese employment termination law prioritizes job security above all else. These termination law guidelines must be adhered to by employers.

There is also regional labor administration to consider, as there may be additional guidelines and rules which vary considerably between jurisdictions.

Discover more about international payroll

To find out more about international payroll, download our international payroll guide today and discover more key considerations.

Download Our Guide

FMP’s Chinese Payroll and HR Solutions

No matter if you’re seeking payroll and HR services in Shanghai, Beijing or Chongqing, FMP have the expertise to guide and assist you with Chinese payroll and HR. We can help with HR administration, labor law consultation, compliance and of course, payroll. Our Chinese payroll and HR services include but are not restricted to:

  • Employment Contracts
  • Payroll Processing
  • Handling of payments (salaries)
  • Annual declarations (lodging, apprenticeship & training taxes for concerned companies)
  • Relations with social bodies
  • Regulatory Compliance
  • Tax and Labor Law Consulting
  • Assisting in payroll audit (or payroll department audit)
  • Handling of confidential payroll
  • Assistance in company restructuring plan
  • Assistance in implementation of procedures
  • Assistance with start-up (in link with lawyers)

Maintain Compliance with Your Chinese Payroll & HR

Let’s start expanding. FMP Global’s experts are ready to help take the stress out of Chinese payroll and HR. We’ll make sure your business remains compliant during the process, and keep disruption to a minimum.

Start your International Expansion Today