Table of Contents:

1. Employment
1.1 Transient Population in Guangdong Province will Adopt Residence Permit Instead of Temporary Residence Permit since January 1, 2010

2. Social Insurance and Housing Fund
2.1 Labor Department of Guangdong Province Released Implementation Measures for Experimental Unit of New Rural Social Pension Insurance
2.2 Ministry of Human Resources and Social Security and Ministry of Finance Released Temporary Measures for Transferring and Connecting Basic Pension Insurance Relations of Urban Enterprise Employees

3. Frequently Used Certificates （No Notification for the Moment）

4. Tax Policy
4.1 The State Tax Administration Released Circular on Collecting Individual Income Tax over Enterprise Annuity

5. Others （No Notification for the Moment）

Contents:

1.1 Transient Population in Guangdong Province will Adopt Residence Permit Instead of Temporary Residence Permit since January 1, 2010
According to Regulations Serving and Governing Transient Population of Guangdong Province, Transient Population in Guangdong Province will adopt Residence Permit instead of Temporary Residence Permit since January 1, 2010. The main contents of this document are as follows:
1.“Mobile Personnel” is modified as “Transient Population”;
2. Where Transient Population works for more than six months consecutively in the residence, they can receive Residence Permit valid for three years at most by providing certified materials such as Working Permit, etc. The Residence Permit should be issued by Police Station of Public Bureau subject to the residence or Serving and Administrative Agency for Transient Population in rural township or street. Transient Population who fails to meet the aforesaid requirement can receive Residence Permit valid for six months at most.
3. Where Transient Population receive the Residence Permit or renew the Residence Permit for the first time, it should not be charged. If Transient Population need to replace or change the Residence Permit due to loss or damage, expenses fees should be paid.
4. Where Residence Permit holders live in the same residence consecutively and have paid for Social Insurance according to law for five full years, engaging in stable occupation, and conforming to family-planning policy, their children should be treated as permanent residence students when receiving preschool education and compulsory education.
5. Where Residence Permit holders live in the same residence and have paid Social Insurance according to law for seven full years, owning fixed residence, stable occupation and complying with family-planning policy, paying tax according to law and no criminal record, they can apply for Permanent Residence.
6. If Transient Population owning Temporary Residence Permit is to transact Residence Permit, their residing period should be calculated consecutively;
7. Where employer fails to, according to Clause 2, Article 21 of this Regulation, report the information about employing transient population or terminating or canceling labor relationship with transient population to public employment serving agency for record, they will be ordered to correct and fined less than RMB 1,000 Yuan by the Human Resource and Social Security Administrative Authority.
For more information please visit: http://www.ciicgz.com/lawinfo.aspx?id=1163

2.1 Labor Department of Guangdong Province Released Implementation Measures for Experimental Unit of New Rural Social Pension Insurance
According to Distributing Circular on Implementation Measure for Experimental Unit of New Rural Social Pension Insurance of Guangdong Province issued by Labor and Social Security Department of Guangdong Province, rural residences over 16 years old who registered residence in Guangdong Province and haven’t participated in urban employee basic pension insurance (including fishermen, herdsmen, etc, but excluding students at school), can voluntarily participated in new rural insurance. There are five degrees for payment standard: RMB 100/year, RMB200/year, RMB300/year, RMB400/year, RMB500/year. Insurance purchaser can choose one of the five degrees to pay. The specific places of experimental unit have not been announced yet.
Relevant documents refers to: http://www.ciicgz.com/lawinfo.aspx?id=1164

2.2 Ministry of Human Resources and Social Security and Ministry of Finance Released Temporary Measures for Transferring and Connecting Basic Pension Insurance Relations of Urban Enterprise Employees
Ministry of Human Resources and Social Security and Ministry of Finance of the state Released Temporary Measures for Transferring and Connecting Basic Pension Insurance Relations of Urban Enterprise Employees on December 28, 2009. The main contents of the policy are as follows:
1. This Measure applies to people who participated in urban enterprise employee pension insurance but have not received pension benefits (hereinafter refer to “the Insured”)
2. If the Insured reaches retiring age, his/her pension insurance will be combined. The people who have received pension benefits can not transfer the pension insurance.
3. The Insured can not surrender insurance for migrant workers.
4. Pension insurance transfer includes: personal account’s balance of pension insurance, 12% of employer’s contribution since 1998, and the payment age.
Later the specific practical measures will be announced by governmental authorities in various levels. For latest information please visit our website.
Relevant documents refer to: http://www.ciicgz.com/lawinfo.aspx?id=1167

4.1 The State Tax Administration Released Circular on Collecting Individual Income Tax over Enterprise Annuity
Recently the State Tax Administration released Circular on Collecting Individual Income Tax over Enterprise Annuity, clarifying relevant issues about collecting individual income tax over enterprise annuity. It will be executed as of the issuing date (December 10, 2009).The main contents include the following:
1. The personal contribution to enterprise annuity should not be deducted from personal wage and compensation of the very month when calculating individual income tax.
2. The enterprise contribution to enterprise annuity which is contained in personal account is personal income due to appointment or employment and is subject to taxable income of individual income tax. It should be deemed as personal monthly wage and compensation (not combine with normal wage and compensation) and should not be deducted any fees. It should be levied individual income tax in the name of “income of wage and compensation” and deducted by the enterprise on behalf of employee in paying.
3. For the enterprise contribution part contained in personal account but not subject to personal part due to annuity’s setting condition, the deducted individual income tax should be returned.
Relevant documents refer to http://www.ciicgz.com/lawinfo.aspx?id=1165