Seminar about Individual Income Tax, Social Insurance and Private Pension

By ECOVIS Beijing

On the 17th of March 2015, Ms. Manuela Reintgen from ECOVIS Beijing and Mr. Klaus-Peter von der Eltz from Expatriate Care Consult held a seminar on individual income tax (IIT), social insurance and private pension, organized by the German Chamber of Commerce and the German Centre in Beijing. One day later, on the 18th of March, this event was repeated for the German Chamber in Shenyang.

(Seminar in Shenyang)

With regard to long-term employment in China, many issues concerning the terms of that employment, a suitable contract design and the ensuing insurance questions arise. Furthermore, the relations between contributions by employers and employees, the options for optimizing individual income tax structures, amongst much more, were discussed. One new thing to the audience was the new social insurance cap released by the PRC. Manuela Reintgen and Mr. Klaus-Peter von der Eltz focused their presentations on these points and gave practical advice.

Manuela Reintgen explained for instance how the IIT burden could be reduced by implementing an annual bonus in the salary structure and showed how much RMB could be saved with this measure alone. When Klaus-Peter von der Eltz spoke about the benefits and drawbacks of the Chinese social insurance. He pointed out that it remains important to have a private provision in order to avoid any financial damages and be fully covered in case of health issues or accidents. People from Germany who don’t speak Chinese should be aware of possible language barriers and that they might also have to deal with long queues and less privacy since the Chinese medical insurance only covers treatments administered in government-approved hospitals.

(Seminar in Beijing)

All in all the seminar covered the following aspects:

• Background to social insurance in Germany and China
• Calculating and optimizing the individual income tax
• Employment in China and effects on social insurance
• Insurance coverage for Germans in China

Manuela Reintgen (manuela.reintgen@ecovis.com) has lived and worked in Shanghai and Beijing since 2009. As Manager of the Business Development department at ECOVIS Beijing, contract design, social insurance, individual income tax and further HR related topics form an inherent part of her day-to-day work.

Mr. Klaus-Peter von der Eltz (k.eltz@expatriate-consult.de) worked as the representative of an insurance group in Shanghai for five years. He is an insurance expert with his focus on mainland China and the business director of Expatriate Care Consult.

Get more tips on Individual Income Tax, Social Insurance & Private Pension – call our office now at +86 10 6561 6609 – 811

With contributions by Jakob Loibl (ECOVIS Beijing)