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Social Security contributions have changed in China

Nov 07, 2019 @ 12:30 AM / by Jeremy Piccoli

Shanghai at night, China

Tax changes in China

China has implemented measures that generally reduce social security contributions. The reductions are primarily targeting employer contributions to the social insurance programs and are part of a multi-year effort to unify pension systems at the national level.

However, the social insurance wage base has increased in Shanghai, resulting in an increase in employee contributions to social security for Shanghai taxpayers. The net effect is a reduction in income tax for Shanghai taxpayers as the increased employee social contributions are deductible.

 

How does this change impact your assignees?

AIRINC’s tax department is here to help. Please don’t hesitate to reach out if you need help with this or any other international tax questions. Click below to start the conversation today:

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AIRINC's Data Points: Your Global Mobility News

Want to learn more? The above excerpt is taken from Data Points, AIRINC's quarterly newsletter. Data Points brings you the latest updates from our Housing, Goods & Services, and Tax departments based on our expert international surveys, which are conducted by our global data collection team on-location.

Click here to access all the latest insights from Data Points.

 


World mapRelated:

What is the 183-day rule and how does it impact Global Mobility programs?


 

Topics: International Tax, China, Mobility Policy, Data Points, Insights and Experience, Tax, International Tax Summaries, International Tax Guide

Jeremy Piccoli

Written by Jeremy Piccoli

Jeremy joined AIRINC in the fall of 2012 and is responsible for managing AIRINC’s International Tax Guide and tax calculator products, as well as consulting with clients. Prior to joining AIRINC, Jeremy spent more than 6 years with PricewaterhouseCoopers’ International Assignment Services practices in Hartford and Boston, providing tax compliance and consulting services to multinational companies and their expatriate population. He received his B.S. with a concentration in Accounting and a Master of Science in Accounting from the University of Connecticut. Jeremy is an Enrolled Agent, a federally licensed tax practitioner who specializes in taxation.