It is possible and quite popular that head office sends local senior staff or skillful staff to management or support subsidiary’s operation in mainland. How the process could be? The staff from head office might also got pay from the head office, how to submit the tax filing and if there is any tax planning concept implied?

HR assignment means that employee is recruited in an institute but arrange to work for the other organization. In this scenario, employee might be sent from head office. There is application process need to go through before get into work in the other country where its subsidiary or representative office located. In general, following two parts are basic to proceed.

A. Things shall be handled by assigner: prepare an entrusted letter, in which clearly shows assigned person, valid period and job range etc. A working visa shall be applied from assigner’s local embassy of China  

B. Things shall be followed up when the assigned person entered into China: Employment permission application, invitation, stay permission and talk to Policy Officer for stay permission.

Basically, the assigned employees, their fees or income paid by China Company during employment period shall subject to personal tax in China. If the number of day stayed in China is less than 90 or 183 (per Customs Trading Policy signed between China and the assigner country), personal tax is exempted. If the number of working day is over 90 or 183, all income including from China and the assigned country shall be subjected to.

The basic calculation formula is: payable tax=taxable income* tax rate - Quick calculation deduction. The taxable income=monthly income- deductible fees (4,800).

As a partial service of a package to foreign client, we have been accumulated working experiences, including language skills, processes to physical check and arranging a talk to police officer in a friendly atmosphere. Tax planning is our key service; our team can ensure the value-added for our client.