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Q&A regarding Agreement on Mutual Exemption of Social Security between China and Japan

Answer
To effectively solve the problem of double payment of social insurance premiums for personnel working in each other’s country by China and Japan, the two countries formally signed the Social Security Agreement between the People’s Republic of China and Japan on May 9, 2018 (hereinafter referred to as Agreement). The Agreement officially entered into force on September 1, 2019. This article aims to solve frequently asked questions in the form of Q&A for clients’ reference.

Q: Which type of insurance is mutually exempted according to the Agreement?
A: The mutually exempted insurances are staff basic pension insurance in China and the National Pension (except the National Pension Fund) and the Welfare Pension (except the Welfare Pension Fund) in Japan.

Q:
Who can be exempted from paying relevant social insurance premiums in Japan?
A:
1.
Dispatch personnel, which refer to persons employed by an employer with a business premises on the Chinese territory and are dispatched by the employer to work on the Japanese territory according to the employment relationship.
2. Employees on seafaring ships which refer to persons employed on seafaring ships flying the Chinese flag, and persons employed on seafaring ships flying the Japanese flag usually residing on Chinese territory.
3. Employees on the aircraft, which refer to persons employed by an employer on Chinese territory and works on an aircraft on an international route.
4. Personnel and civil servants of diplomatic and consular institutions. The personnel of the diplomatic and consular offices refer to the relevant personnel defined in the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations. Civil servants refer to civil servants dispatched by China to work on Japanese territory and those who are treated equally in accordance with Chinese laws.
5. Exception. The competent authorities or agencies in China and Japan may agree to make exceptions to Articles 5 to 8 of the Agreement for specific persons or groups of people, provided that such persons or such persons are subject to the laws and regulations of either China or Japan.
6. Accompanying spouse and children. Accompanying spouse and children of dispatch personnel, civil servants and exceptional personnel may be exempted from paying the Japanese National Pension (except the National Pension Fund), if they meet the requirements of Japanese law on the implementation of social security agreements. However, upon application by their spouse and children, the regulations will not apply.

Q:
Who can be exempted from paying relevant social insurance premiums in China?
A:
The conditions applicable to Japanese who are exempted from paying social insurance premiums in China are the same as those applicable to the 1to 5 categories of Chinese.

Q:
How long could the exemption period last for dispatch personnel from paying social insurance premiums?
A:
The maximum period for dispatch personnel to be exempted from payment of social insurance for the first time is 5 years. If the dispatch period exceeds 5 years, it may be extended if agreed by the competent authorities or agencies in China and Japan.

Q:
What materials need to be provided to apply for exemption from paying relevant social insurance premiums?
A:
Applicants need to submit the Insurance Certificate to apply for exemption from paying corresponding social insurance premiums.

Q:
Can Japanese apply for exemption from paying relevant social insurance premiums in China if they cannot provide Insurance Certificate?
A:
No. For Japanese who cannot submit the Insurance Certificate in China, the local social insurance agencies should urge them to participate in China’s social insurance according to relevant regulations.

Q:
Apart from the Staff Basic Pension Insurance, can other social insurances be exempted from payment for Japanese working in China?
A:
No. In addition to the Staff Basic Pension Insurance as stipulated in the Agreement, Japanese in China should participate in other types of social insurance in China in accordance with relevant regulations.

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