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Thursday, September 08, 2011
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China
Thursday, September 08, 2011Expat social security tax clarification
Contradictions in the press accounts of foreign worker status under the Social Insurance Law (IH 08/10/11) are now quietly being resolved. The provinces have a high degree of autonomy in their social security programs so provincial governments have individually decided whether to comply with the requirement on foreign worker participation in the long gap between the 1 July 2011 official launch date and eventual arrival of the actual launch. The majority of provinces are not enforcing the requirement; Tianjin being one of the few that formally introduced the mandate on 1 July. Officials of the Municipal Human Resources and Social Security Bureau in Shanghai – where expats already have the option to join the system – have been candid about participation being a bad idea for many expats. When the federal government does issue implementing regulations, the provinces will have some level of flexibility in compliance.
