Employment Related Tax and Incentives

Employment Related Tax & Incentives - China

Creative and cutting-edge solutions for employee tax and benefits

Our tax lawyers have extensive experience in personal tax and employee benefits and incentives. They devise employee incentive schemes and tax optimisation solutions efficiently and seamlessly.

We regularly advise on individual income tax (IIT) issues for expatriates of multinational corporations seconded to work in China. We advise foreign nationals who are assigned to projects that constitute the creation of a ‘permanent establishment’ in China. And we advise overseas artists and professors who work in China on short-term projects.

Our advice on the law relating to employment taxes and benefits includes:

  •  Structuring remuneration packages for expatiate employees assigned to work in China
  • PRC IIT issues and tax planning opportunities for expatriate employees and their employers
  • Employment structuring and secondment arrangements to mitigate permanent establishment exposure for foreign employers
  • HR policies, employee fringe benefits and reimbursement policies
  • Employee incentive schemes, such as stock option plans, restricted stock units, and management buy-outs
  • Tax registration for employee incentive schemes
  • IIT filing and tax settlement
  • Applying to the tax authority to enable offshore remittance for the reimbursement of expatriates’ payroll and social security contributions paid by overseas employers.

Discover our latest insights into legal issues affecting your business

We will discuss IIT treatment and related issues in relation to equity incentive plans of both non-listed and listed companies.

06 September 2015

For the first time, the IIT deferral mechanism, which has been commonly applied in other countries, is introduced to enterprise annuities in China.

05 April 2014

We summarize the issues concerning the assessment of taxable presence or PE under secondment arrangements.

04 July 2013