China offers great potential for companies looking to expand or grow their business overseas. With the 2nd largest economy in the world and over 1.3 billion people, China has a strong urban and rural work force and many opportunities for growth.

There can be challenges to expanding and managing payroll in China. There are frequent changes to rules and regulations taking place at the provincial level, more than 11 languages spoken with many regional dialects, and many cultural differences and expectations in business transactions. There are complex business structures, and a controlled currency. The tax year ends on December 31st, and taxes must be filed by March 31, 2018

Individual Income Tax and Social Insurance are paid each month by the employer; partially paid by employer, and partially deducted from the employee salary. Tax payments must be settled by the 15th of the following month.

The annual IIT self-declaration form must be submitted by employees with the following information by March 31, 2018 if they meet the following criteria:

  • Annual income exceeds RMB 120,000
  • Earn income from two or more difference sources in China
  • Earn income that is derived from sources outside of China
  • Receive taxable income for which there is no withholding agent
  • Meet any other conditions that are specified by the State Council

To navigate expansion in China, you need a partner who can guide you through the cultural nuances and continuously changing provincial laws and regulations. Blue Marble is a leader providing global payroll solutions for companies that also operate in China, and can guide you through the laws to ensure compliance. We offer easy to use global payroll technology, a dedicated in-house team and access to in-country providers, and monthly aggregated reporting to ensure your payroll in China is seamless and integrated.