China - Register Social Security Contribution Tax

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Procedure

Taxpayers should receive tax registration forms from competent the tax authority or tax registration centers and complete them as required.

Competent the tax authority or tax registration centers should examine and verify the documents, certificates, materials and tax registration forms submitted by taxpayers, issue tax registration certificates to those that meet the requirements and collect from them tax registration costs and administrative fees.

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Required Documents

• An industrial and commercial business license or other similar permit of business operation
• A contract, agreement and articles of association
• The unified organizational code
• The ID card, passport or other valid ID certificate of the legal representative, or responsible member of owner
• Other documents and information demanded by the tax authorities of a province, autonomous region or municipality directly under the State Council

Office Locations & Contacts

State Administration of Taxation
Address: Yangfangdian Road, Haidian District, on the 5th
Zip: 100038
Tel: 010-63417114
Website: http://www.chinatax.gov.cn

State Administration for Industry and Commerce People's Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
Phone: +86-10-68010463/68013447
Facsimile: +86-10-68010463/68013447
Email: [email protected]
Contact
Address

Eligibility

The inevitable payment units and individuals contained herein refer to foreign-invested enterprises, urban private enterprises, and other urban enterprises along with their employees, and public institutions implementing enterprise-style management and their employees, in compliance with relevant laws and administrative regulations.

Basic pension insurance

Basic medical insurance

Work-related injury insurance

Unemployment insurance

Maternity insurance

Fees

Explain the fees structure which is required for obtaining the certificate/document.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

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Sample Documents

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Processing Time

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Related Videos

Videos explaining the procedure or to fill the applications. 
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Instructions

The employer is supposed to a percentage of basic payroll to the state administered retirement scheme and also must contribute to a medical insurance fund, maternity insurance, unemployment insurance and work related insurance.

Required Information

• The name and the number of the ID card, passport or other valid ID document of the institution, legal representative or owner
• The residence or business address
• The type of registration
• The accounting system
• The form of production and business operation
• The scope of production and operation
• The total amount of capital (fund), investment
• The term of production and operation
• The name and telephone number of the financial chief
• Other information specified by the State Administration of Taxation

Need for the Document

The tax levied on both employers and employees used to fund the Social Security program. Social Security tax is usually collected in the form of payroll tax or self-employment tax.

Information which might help

Please find here a short summary regarding important immediate action steps and points of clarification for the new PRC Social Security Law:

Confirm which expatriates working in your office(s) are required to participate in the PRC Social Security system. All non-Chinese nationals working in China holding a work permit, resident permit or a permanent residence permit must participate in the social insurance system. The Chinese employers or China host entities are required to pay their respective employers share of the contributions.

Complete the required registration procedures with the SSB on behalf of the expatriates, which will include receiving China social security cards. Within 30 days after obtaining a work permit, the unit in China which employs the expatriate should apply for social insurance registration for the expatriate. Expatriates working in China must participate in the same funds as Chinese employees. The calculation of the social insurance premiums is the same as for Chinese employees. The rates are determined by the local governments and will, therefore, vary from city to city. Contributions will be due on a monthly basis.

Confirm whether expatriates should make contributions to the PRC Social Security system starting from July 2011 (retroactively) or from October 2011 or from November 2011 with the local social security bureaus. This again will be determined by the facts and circumstances of each employee as it relates to the local taxing jurisdiction. Note that upon departure from China, the company and expatriates would be allowed to withdraw the contributed amounts directly from the SSB. Expatriate employees are entitled to pension benefits at the statutory retirement age, i.e. 60 for men and 55 for women, but may apply for earlier payment of the balance in his or her personal social insurance account when he or she leaves the country.

Other uses of the Document/Certificate

Individuals failing to register with the local social security bureau or avoiding making contributions will be subject to penalties. If the employer fails to complete social security registration, he may be subject to penalty which may be as high as three times the amount of contribution payable. In addition, if the employee fails to make payment on time, he shall be subject to a fine amounting to 0.05% of the contribution payable for each day of late payment.

External Links

Notice of the Ministry of Finance, the Ministry of Human Resources and Social Security, and the State Administration of Taxation on Relevant Issues Concerning the Individual Income Tax of Enterprise Annuities and Occupational Pensions

State Administration for Industry and Commerce People's Republic of China

State Administration of Taxation of the People's Republic of China

Ministry of Commerce, the People's Republic of China

Tax Law

State Administration of Taxation

Others

The tax base of individual salaries subject to social security for enterprise annuities shall be the average monthly wage of the individuals in the previous year. The amount of average monthly wage shall be calculated on the basis of the items which are included in the total wages according to provisions regulated by the National Bureau of Statistics. The part of the average monthly wage exceeding 300% of the average monthly wage of workers in above-county-level cities of the previous year shall not be included in the tax base of individual salaries subject to social security.

When an individual reaches the retirement age regulated by the State, for implementing this notice, the full amount of annuities received on a monthly basis shall be subject to individual income tax at the rate applicable to the income from wages and salaries item; and the annuities received on an annual or a quarterly basis shall be equally aportioned into each month, and the full monthly amount shall be subject to individual income tax at the rate applicable to the income from wages and salaries item.