All types of enterprises established in China, including foreign-invested enterprises (FIEs), are required to cut their dispatched employees to 10 percent of their total number of employees by March 1, 2016. In early 2014, China’s Ministry of Human Resources and Social Security (MOHRSS) promulgated the “Interim Regulations on Labor Dispatch,” which imposed strict restriction on the number of dispatched employees an enterprise may hire. Considering the fact that most manufacturers in China largely rely on dispatched employees to support their seasonal cycle of business operation, the MOHRSS allowed a two-year transition period for enterprises to gradually reduce their dispatched employees before March 1, 2016.
Below we provide four feasible options for companies trying to comply with the new rules while maintaining their business scale:
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On Thursday last week, Apple officially launched its mobile payment service in China, the company’s second largest market. The company’s product Apple Pay allows users of the iPhone 6 or more advanced versions, certain iPads and Apple Watches to use these devices and buy items in the stores equipped with the near field communication (NFC) technology. Apple’s alliance with China’s state-owned bankcard association, China UnionPay, was announced in December last year. Following the announcement, the Chinese government released the “Administrative Measures on Online Payment Services provided by Non-bank Payment Institutions,” which will limit the amount an individual can pay online per day through third-party payment accounts once enacted.
China is undoubtedly one of the fastest growing mobile payment markets in the world with its smartphone penetration rate of 62 percent in 2014. However, China’s third-party mobile payment market is dominated by internet giants Alibaba Group Holding and Tencent Holdings – the two companies combined have more than 90 percent of the mobile payment market.
China’s tax bureau has recently rolled out a slew of regulations to simplify the tax filing procedure and lift tax burden for low profit enterprises. Taxpayers with monthly sales revenue not exceeding RMB 100,000 are now exempt from certain surcharges including educational surcharges, local education surcharges and water conservancy construction charge. Further, companies that have been recognized by the tax bureau as the “Level A” taxpayers will be exempt from verification when they use the value-added tax (VAT) invoice issued by the sellers to offset their VAT liability. Instead, they may use the online VAT invoice management system for tax reduction purposes.
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Human Resources and Payroll in China 2015
This edition of Human Resources and Payroll in China, updated for 2015, provides a firm understanding of China’s laws and regulations related to human resources and payroll management – essential information for foreign investors looking to establish or already running a foreign-invested entity in China, local managers, and HR professionals needing to explain complex points of China’s labor policies.
An Introduction to Doing Business in China 2015
Doing Business in China 2015 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies that already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.
Selling, Sourcing and E-Commerce in China 2016 (First Edition)
This guide, produced in collaboration with the experts at Dezan Shira & Associates, provides a comprehensive analysis of all these aspects of commerce in China. It discusses how foreign companies can best go about sourcing products from China; how foreign retailers can set up operations on the ground to sell directly to the country’s massive consumer class; and finally details how foreign enterprises can access China’s lucrative yet ostensibly complex e-commerce market.
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