OUR INSIGHTS
- Shanghai clarifies average wage for urban employees in 2018
TAX
- New corporate income tax policy for integrated circuit design and software industry
CORPORATE ADVISORY
- NPC standing committee amended anti-unfair competition law
HUMAN RESOURCES
- Beijing announces maximum and minimum base wages
OUR INSIGHTS
Shanghai clarifies average wage for urban employees in 2018
On 21 June 2019, the Shanghai Municipal Bureau of Human Resources and Social Security released the “Average Wage for Urban Employees in 2018”. According to the Bureau, city workers in Shanghai make an average wage of RMB8,765 per month, which adds up to RMB105,176 per year. In order to reduce corporate burden on social security contributions, Shanghai will make progressive adjustment to the social security contribution standards with a three-year transition period. The maximum and minimum monthly wages for social security contributions are RMB24,633 and RMB4,927 respectively with effect from 30 April 2019. Beijing announces maximum and minimum base wages for medical insurance, maternity insurance and housing provident fund On 29 June 2019, the Beijing Municipal Medical Insurance Bureau announced the maximum and minimum base wages for medical insurance and maternity insurance contributions to be RMB27,786 and RMB5,557 a month respectively.
On the same day, the Beijing Municipal Housing Provident Fund Management Committee made another announcement on “Adjusting the Maximum and Minimum Base Wages for Making Housing Provident Fund Contributions in Beijing in 2019”. According to the announcement, the maximum and minimum base wages for making housing provident fund contributions are RMB27,786 and RMB2,200 a month respectively. Staff who are receiving basic living subsidies can contribute at a lower rate of RMB1,540 a month.
The announcement was made effective from 1 July 2019.
TAX
New corporate income tax policy for integrated circuit design and software industry
China’s new corporate income tax policy for the integrated circuit design and software industry aims to encourage the Integrated Circuit (“IC”) Design and Software Industry (enterprises) to develop local brands and promote industrial developments. It offers a preferential tax policy with a five-year tax holiday for Corporate Income Tax (“CIT”) made available for qualified enterprises , according to the policy announced on 17 May 2019. Qualified enterprises established before 31 December 2018 that made profits will enjoy this five-year tax holiday. A detailed time division and corresponding tax rates are stated below.
Initial Profit-making : Year CIT Rate
1–2 Years : CIT Exemption
3–5 Years : Half of Statutory Corporate Tax Rate (currently at 25%)
CORPORATE ADVISORY
NPC standing committee amended anti-unfair competition law
On 23 April 2019, the National People's Congress (“NPC”) Standing Committee decided to amend the Anti-unfair Competition Law to match the implementation of the New Foreign Investment Law. As foreign investors get to enjoy local benefits in China under the New Foreign Investment Law, the Anti-unfair Competition Law was amended accordingly.
Firstly, the definition of "trade secrets" was redefined; secondly, circumstances under which the infringement of trade secrets were clarified; thirdly, another paragraph was added to Article 9 of the Anti-unfair Competition Law to include other persons, legal persons and unincorporated organisations (in addition to business operators) into the scope of subjects held liable for infringement of trade secrets; fourthly, legal liability for the infringement of trade secrets was enhanced; and lastly, a new article, Article 32, was added to the Anti-unfair Competition Law to prove the infringing of trade secrets during civil trial procedures. These revisions were made effective from 23 April 2019 onwards.
HUMAN RESOURCES
Beijing announces maximum and minimum base wages
On 29 June 2019, the Beijing Municipal Medical Insurance Bureau announced the maximum and minimum base wages for medical insurance and maternity insurance contributions to be RMB27,786 and RMB5,557 a month respectively.
On the same day, the Beijing Municipal Housing Provident Fund Management Committee made another announcement on “Adjusting the Maximum and Minimum Base Wages for Making Housing Provident Fund Contributions in Beijing in 2019”. According to the announcement, the maximum and minimum base wages for making housing provident fund contributions are RMB27,786 and RMB2,200 a month respectively. Staff who are receiving basic living subsidies can contribute at a lower rate of RMB1,540 a month. The announcement was made effective from 1 July 2019.
About Us
Established in 2001, SBA Stone Forest is a corporate advisory and public accounting group headquartered in Shanghai with offices in Beijing, Suzhou, Shenzhen, Chengdu and Hangzhou. We help foreign businesses set up in China and thereafter navigate its regulatory and business environment.
Discerning international businesses appreciate our Singapore heritage as it epitomises excellence, integrity and trust. We share the same systems, high standards, international best practices and service culture of our Singapore parent.
Together with our partner-owned public accounting practice, we offer expert knowledge and one-stop, hassle-free solutions for Audit, Tax Advisory & Compliance, Advisory (Equity Investment Management & Risk Management) and Business Solutions (Accounting & Advisory, Payroll & HR Advisory, Corporate Secretarial & Advisory).
We are also well-positioned to help Chinese enterprises internationalise, given our Singapore parentage in a top financial and business hub in Asia, and our membership in the Allinial Global international network.
