Table of Contents:
1. Employment
1.1 Identification Condition of Enterprise in Difficulties is relaxed in Guangdong Province to Further Exert Social Insurance Function and Support Enterprise Development
2. Social Insurance and Housing Fund
2.1 Circular on Adjusting Unemployment Insurance Benefit
2.2 Guangzhou Local Taxation Bureau is Fully Responsible for Collecting Social Insurance Premium Since October£¬2009
3. Frequently Used Certificates
3.1 Adjustment on Foreigners Applying for Work Approval
4. Tax Policy
4.1 Matters about Application of Self-audit Tax Policy of 2009
5. Others
5.1 Opinion on Settling down Employees from Enterprises apply to ¡°Two Transfers¡± and ¡°Suppressing the Second Industry and Developing the Third Industry¡±
Contents:
1.1 Identification Condition of Enterprise in Difficulties is relaxed in Guangdong Province to Further Exert Social Insurance Function and Support Enterprise Development
In order to further exert social insurance function and support enterprise development, the provincial Labor and Social Security Department, provincial Finance Department and provincial Local Tax Bureau jointly issued Notice on Relevant Matters about Exerting Social Insurance Function and Supporting Enterprise Development£¨Hereinafter referred to as ¡°Notice¡±£©.The Notice explicated relaxing identification condition of enterprise in difficulties and disposes more enterprises in difficulties to enjoy preferential policies such as delaying paying for social insurance and receiving subsidies, etc.
Comparing to Notice on Exerting Social Insurance Function, Assisting Enterprises to Develop and Actively Coping with International Financial Crises(hereinafter referred to as ¡°Early Notice¡±) issued early this year, the Notice relaxes the identification condition of enterprises in difficulties as follows:
1. The scope of applicant enterprises is no longer confined to industry of clothes, shoes, textile, toys, printing, packaging, electronic components, home appliances, hardware and plastics, furniture, etc.
2. The two conditions set in the Early Notice£¬¡°the rate of gross debt and gross asset must between 80%-100%¡± and ¡°did not suffer consecutive deficit within three months before bankruptcy¡± are no longer the identification condition of enterprises in difficulties.
3. One condition, ¡°influenced by the financial crises, sales revenue slumped on year-on-year basis but still manage to maintain business operation¡± is added as one of identification condition of enterprises in difficulties. The slump rate of sales revenue will be set by labor and security, finance and local tax authority in every region according to applicant enterprise¡¯s condition and balance condition of local unemployment insurance fund.
Relevant document refer to: http://www.ciicgz.com/lawinfo.aspx?id=1079
2.1 Circular on Adjusting Unemployment Insurance Benefit
According to the circular issued by Guangzhou Labor and Security Bureau, since September 1, 2009, Guangzhou unemployment insurance benefit standard will be adjusted as follows:
(1) Unemployment dole for urban residents is adjusted from RMB 688 per month to RMB 791 per month. The medical care subsidies remain the same as before, which is RMB 86 per month.
(2)Peasant-workers can get one-off living subsidies. For those who have participated in unemployment insurance for one full year, they can get 20% of their average monthly salary of 12 months prior to ending the insurance. For each exceeding month over one year, the peasant-worker can get additional 2% of average monthly salary of 12 months prior to ending the insurance. (The original standard is 12% for one full year, 1% for each exceeding month.)
Relevant documents refer to: http://www.ciicgz.com/lawinfo.aspx?id=1073
2.2 Guangzhou Local Taxation Bureau is Fully Responsible for Collecting Social Insurance Premium Since October£¬ 2009
Since October 2009£¬ Local Taxation Bureau of Guangzhou city£¬ including Panyu District but excluding Huadu District, Zengcheng District and Conghua District will be fully responsible for collecting social insurance premium. The collection scope covers kinds of social insurance premium such as basic pension insurance, basic medical insurance, unemployment insurance, industrial injury insurance and maternity insurance of urban employees, basic pension insurance of people who changed rural resident to urban resident, pension insurance of peasant whose land was expropriated, and rural social pension insurance.
Guangzhou Local Taxation Bureau will be fully responsible for registration, declaration, verification, collection, recovering debt, investigation and prosecution, subsection of special financial account. Each District Local Taxation Bureau operates the service process. Declaration of increasing and decreasing numbers of every month must be done before 15 of the very month.
Relevant documents refer to: http://www.ciicgz.com/lawinfo.aspx?id=1098
3.1 Adjustment on Foreigners Applying for Work Approval
Commencing upon September 24, 2009, when processing foreigner¡¯s work approval, if the foreigners have entered into China¡¯s area, they should submit copy of Temporary Residence Registration Certificate of Foreigners in addition to the original materials.
4.1 Matters about Application of Self-audit Tax Policy of 2009
The Large Enterprise Tax Administration Department of State Tax Administration issued Letter of Self-audit Tax Policy of 2009, making a unified reply to the application problems of individual income tax policy as follows:
(1)Individual Income Tax of Transportation Subsidies of Employees released by Enterprise.
According to Article Two of Circular of State Tax Administration on Relevant Policy of Individual Income Tax, if enterprise adopts the way of reimbursing private cars¡¯ bunker charges to release transportation subsidies to employees, the charges should be levied individual income tax on the ¡°wage¡± item after being deducted of certain public affairs fees.
Note: Presently Guangzhou has not engaged in system reform of cars used for public affairs. So Guangzhou has not executed Circular of State Tax Administration on Levying Individual Income Tax on Subsidies from Reform of Cars Used for Public Affairs. Instead according to stipulation of Individual Income Tax Law, the transportation subsidies such as reimbursing bunker charges of private cars received by employee from employer should be included in wages of the very month and levied individual income tax.
(2) Individual income tax of communication subsidies of employees released by enterprise.
According to Article Two of Circular of State Tax Administration on Relevant Policy of Individual Income Tax, the communication subsidies released by enterprise to employees should be levied individual income tax base on ¡°wage¡± item after being deducted of certain standard of public affairs fees.
Note: Regarding the communication subsidies of individuals received from employers, according to Circular on Levying Individual Income Tax on Individual Communication Subsidies, they should be levied individual income tax base on ¡°wages¡± after being deducted of certain standard of public affairs fees.
(3) Individual income tax of personal accident insurance purchased by enterprise for employees.
According to Reply of State Tax Administration on Matters of Levying Individual Income Tax on Relevant Insurance Paid to Employees by Employer, regarding the tax-free insurance premium paid by employer for employees, when paying to insurance company, they should be included in wage income of the very period and levied individual income tax base on ¡°wage¡± item.
(4) Individual income tax of enterprise annuity
According to Reply of Finance Department of State Tax Administration on Matters of Individual Income Tax, employee¡¯s monthly wage income should be multiplied by the specific standard for calculating annuity of enterprise and then levied individual income tax.
(5) Individual income tax of supplemental medical insurance paid by enterprise for employees
According to Circular of Finance Department and State Tax Administration on Levying Individual Income Tax of Housing Fund, Medical Insurance, Pension Insurance, individual income tax should be levied. If enterprise entrusts insurance company to open account individually and manage collectively, and personal account has not been set up, employee¡¯s monthly wage income should be multiplied by the specific standard unified by enterprise to calculate employee¡¯s deserved supplemental medical insurance, and then included in the very month¡¯s wage to levy individual income tax.
Relevant documents refer to: http://www.ciicgz.com/lawinfo.aspx?id=1078
5.1 Opinion on Settling down Employees from Enterprises apply to ¡°Two Transfers¡± and ¡°Suppressing the Second Industry and Developing the Third Industry¡±
In order to protect the legal rights and interests of employees from enterprises apply to ¡°Two Transfers¡± and ¡°Suppressing the Second Industry and Developing the Third Industry¡±, Guangzhou Labor Security Bureau issued Opinion on Settling down Employees from Enterprises apply to ¡°Two Transfers¡± and ¡°Suppressing the Second Industry and Developing the Third Industry¡±£¨hereinafter referred to as ¡°the Opinion¡±£© on Sept.1, 2009.
The Opinion requires enterprise should first assure the fund for economic compensation to employees with whom enterprise terminated employment relationship, then go through procedures of transferring industries, labor force, and ¡°Suppressing the Second Industry and Developing the Third Industry¡±.
The Opinion also explicates that settling plan for relevant enterprise employees should comply with relevant rules and procedures. If enterprise need to cut down on or above 20 employees, or less than 20 employees but account for 10% or above of total employees, the enterprise should explain to the labor union or all staff thirty days in advance, listen to opinion of labor union or all staff and report the layoff plan to the labor and security administrative department in charge.
The Opinion also emphasizes for the female employees in pregnant period, prenatal period and suckling period and employees in illness or non-industrial-injured and in medical period, enterprise should not terminate labor contract with them except for statutory conditions. Even if the labor contract expires during these periods the enterprise should not terminate such contracts, but rather to extend the contract term till the suckling period or medical period ends or when the employee leaves hospital.
Relevant documents refer to: http://www.ciicgz.com/lawinfo.aspx?id=1080
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