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Taxation - China

Question

Policies Related to The Taxation of Social Insurance Premiums by Shanghai Enterprises

Answer
On October 30, 2020, the Shanghai Tax Bureau issued an announcement that corporate social insurance premiums will be collected by the tax department starting November 2020. What will change as a result of the reform?

Q: What types of insurance will be collected through the IRS under the reform?
A: Basic pension insurance premiums, basic medical insurance premiums for employees, maternity insurance premiums, work injury insurance premiums, and unemployment insurance premiums are collected by the tax bureau.

Q:
Which persons will be covered by the tax levy after the reform?
A:
The social insurance contributions required of enterprise employees and those in flexible employment are collected by the tax authorities.

Q:
What changes have been made to corporate reporting?
A:
Enterprises pay their contributions to the tax authorities in accordance with the amount approved by the social security agency and pay the current month's social insurance contributions to the tax authorities by the 15th of each month.

Q:
How do flexible workers pay their fees?
A:
Flexible workers are expected to make monthly payments to the tax department, which centralizes deductions on the 11th and 21st of each month.

Q:
How have the payment channels changed?
A:
Contributors can either continue to use the original social insurance premium deduction account to pay their contributions, or they can do so through the electronic tax office, unit clients, mobile phone apps and tax service offices.

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