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?
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