Latest updates on enforcement and collection of social security contributions for foreigners working in China
In the October 2011 Issue 27 of our China Tax and Business News Flash, we discussed the national social security scheme applying to both Chinese companies and their employees (including local PRC and foreign nationals). The basic regulatory framework of this scheme is made up of the Social Security Law, its Implementation Rules as well as the Provisional Measures on the Participation in the Social Security Scheme by Foreign Employees Working in China ("the Provisional Measures"), issued by the Ministry of the Human Resources and Social Security ("MHRSS") dated 6 September 2011. However, there are still various unclear issues which have not been specified in these policy documents.
On 2 December 2011, the MHRSS issued a Circular Renshetingfa  No. 113, titled "Notice Clarifying Certain Issues Regarding the Participation in the Social Security Scheme by Foreign Employees Working in China" ("Circular 113") to further clarify some points of concern / uncertainty arising from the aforementioned regulations that affect foreigners participating in the social security scheme. Circular 113 has been circulated by the MHRSS for a while but has only been formally released on its official website recently.
In this News Flash, we would like to share with you the salient points of Circular 113 and our observations on this important and widely discussed topic that affect many businesses and their foreign employees in China.
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