《高层管理者与外籍/外派人士个人所得税筹划》

In this seminar, we will discuss the following issues:

1. AEOI (Common Reporting Standard (CRS)) - how will it affect expatriates working in China?  What are the differences if you have family in home country?  Which types of information will be transmitted to China State Administration of Taxation?  Will information of jointly owned bank accounts be transmitted? 

2. How will the Golden Tax 3 system affects expatriates' IIT reporting in China?  What are the latest trends in IIT enforcement on expatriates working in China?

3. Under what circumstances an expatriate will be a China tax resident? What is the 5-year rule for China worldwide tax?  What is "tax break"?  If you have already stayed in China over 5-year period, what can you do?

4. If your company has not withheld IIT correctly for the employees, what are the remedies to reduce the penalty / late payment surcharges?

5. Which types of short-term assignment to China can be exempt from IIT?

6. Can a legal representative of a wholly foreign owned enterprise not getting paid in China?

7. Why the chief representative of a rep office has to pay IIT for even one-day of stay in China?

8. What are the IIT implications on stock option plan on expatriates? How to allocate onshore and offshore income?  

Why HR should reconsider the foreign exchange registration of stock option for expatriates?　 What are the China tax issues on stock option?  Will an expatriate be taxable in China after leaving China?

9. Can split salary payments inside and outside China reduce IIT?  

10. Will an expatriate be subject to China IIT for director's fee received?

11. What are the pitfalls of ideas such as "multiple payments of salaries", "non-cash benefits", "service fees", annual bonus etc.?

12. What should be noted in getting tax exempt allowances, e.g. meal allowance, housing allowance etc.?

13. Can expatriates get paid in foreign currency?  Can an expatriate remit funds out from China after selling off his/her property?

14. What are the possible IIT planning opportunities for expatriates under the current tax environment?  How to manage the risk of companies?

在这次研讨会上，我们将讨论以下问题：

1. AEOI (金融账户涉税信息自动交换)如何影响在中国境内工作的外籍人士？在原居地有家庭会否影响税务处理？哪些境外金融机构账户数据会交换到国家税务总局？联名银行账户的数据会否被交换？

2. 金税三期如何影响外籍人士的个税申报？对外籍人士的个税执法和稽查近期趋势

3. 外籍人士在哪些情况下会成为中国税收居民? 何谓「五年」? 何谓「tax break」? 如果你已在中国停留超过五年，可以怎办？

4. 如果公司少扣缴个人所得税，有何补救措施以减少罚款、滞纳金？

5. 哪些类型的中国短期工作能免征个人所得税？

6. 外资企业的法定代表人能不拿工资吗？

7. 为何代表处的首席代表即使在中国一天也要交个人所得税？

8. 外籍人士取得股票期权如何划分境内境外收入？为何HR在替外籍人士办股票期权的外汇登记时要三思?　外籍人员离境后才行权，要交个人所得税吗？

9. 境内境外分别发工资，只申报境内收入以减税，可行吗？

10. 境外公司支付的董事费，要在中国交个人所得税吗？

11. 以服务费、多处支付工资、非现金实物福利、奖金等，能减税吗？

12. 安排外籍个人免税补贴时，有哪些重点要注意？

13. 外籍个人能发外币工资吗？出售房产取得人民币能否合法汇出境外？

14. 有哪些可行的个税筹划方案？有哪些税收风险需要考虑？

We will explain these points via the cases below:

我们将通过下面的案例解释这些问题：

Case 1 – Different people, different concerns

XYZ Group has the following types of expatriates working in China:

案例1 – 针对不同人群的区别考虑

Case 2 – Tax resident and PRC worldwide tax

Mr. Smith, a Canadian citizen, has been working in XYZ (China) Co Ltd as the CFO since 2010.  He has bought a service apartment in China and got married with a Chinese national.  He worried that he would become a tax resident of China and hence, subject to worldwide tax in China.  

案例2–纳税居民和中国全球税

Case 3 - Expatriates staying in China for less than 183 days but need to pay China IIT

The overseas parent company charged its Beijing subsidiary technical service fees.  Each of the project team member stayed in China for less than 183 days but they were required to pay China IIT and totaled RMB17 million and late payment surcharge of RMB5 million.   In another similar case, the IIT totaled RMB30 million while the enterprise income tax on the permanent establishment was RMB5 million

案例3 - 外籍个人在中国少于183天但要缴纳中国个税

Case 4 - Fraudulent invoices and penalty

A multinational company’s China subsidiary appointed three of the Big 4 to handle its China IIT matters.  During a self-review, the China Co paid back IIT of RMB5 million for expatriates’ home leave allowances of family members and hotel charges, and housing allowances etc. for overseas returns working in China.  During the tax audit, the China Co paid back IIT of another RMB4.5 million and a penalty of RMB4.5 million because of fraudulent invoices on housing allowances.

个案4-虚假发票和处罚

Case 5 - Who should bear the IIT on salaries paid overseas

The legal representative of a Guangzhou wholly foreign owned enterprise (WFOE) sued its employer on paying IIT on his overseas salaries to the Guangzhou Local Tax Bureau (LTB) during a tax audit.  The WFOE required him to pay back the tax.  He further sued the Guangzhou LTB on collecting IIT on his overseas salary since he has paid US tax already.

案例5 - 谁该负担境外收入相关的个人所得税

Case 6 – Salaries and investment income

Mr. Smith has selected to get 100% of salaries paid in Renminbi (RMB) in China.  While he bought his first apartment with cash remitted from overseas, he has used the RMB to buy two other properties in China.  His wife has invested in GEM Board and made a profit of a few millions.  Recently, the couple decided to dispose all the properties in China and migrate back to Canada for retirement.  

案例6 - 薪金及投资收益

Case 7 – Back-filing taxes

During the annual audit, the auditors of ABC (China) Co Ltd told management that the Company has not properly withheld IIT for their staff.  Hence, the following amounts have been provided in the accounts:

案例7–补税

Case 8 – Stock option

ABC Group, a listed company in Hong Kong, is considering the implementation of a stock option scheme to its employees in China, including expatriates and PRC local employees.  

案例8 - 股票期权

Case 9 – Bonus

At a seminar, the speaker mentioned that bonus can be paid by installments and taxed as a lump sum.

案例9–奖金

Case 10 – Director 

Mr Ma is the director of both Beijing subsidiary and Hong Kong listed company.  He has received director's fees from both companies.  He is an US citizen and stayed in China for over 10 years.  

案例10–董事费