Worldwide tax summaries 2011/12

Foreigners to make social security contributions in mainland China from 15 October 2011 

Sep 2011

The China Social Security Law ("The Law") which took effect on 1 July 2011 introduced a national framework with an aim to standardise and strengthen the social insurance scheme administered by local governments for Chinese and foreign individuals as well as their employers in mainland China.  Although the draft Provisional Measures for Foreigners Working in China regarding Participation in the Social Insurance Scheme released in June 2011 for public consultation helped ease the uncertainty brought about by The Law on how foreigners would be affected, it has stirred up widespread concerns on how foreigners could in practice enjoy the social security benefits after making their contributions.

On 6 September 2011, the Ministry of Human Resources and Social Security issued the final Provisional Measures which will take effect on 15 October 2011.

In this issue, we would share with you the key areas of the Chinese social insurance scheme relevant to foreigners and our observations.  Please also refer to our previous issue dated February 2011 for our observations on the implications of The Law.
   
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Mandy Kwok
Managing Partner - Asia
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