Notice! Buy Chinese Social Insurance Or Pay A Fine!
Recently, many enterprises have received the Notice of Social Insurance from Local Taxation Bureau in Tianhe District, GZ. In the Notice, your companies are required to pay off social insurance fees as soon as possible, according to Social Insurance Law of PRC.
If you don't pay off all the social insurance fee within the specified time, you will subject to an overdue fine (0.05% of the unpaid insurance per day before another deadline). Worse still, you will subject to a heavier penalty -- up to three times the unpaid insurance!
How to do?
To those enterprises who have received the Notice, HACOS would like to suggest that you pay off insurance as soon as possible!
If you pay off all insurance fees on time from now on, you will have no need to repay previous fine for delaying payments.
Since a great deal of foreigners in China don't really know Chinese Social Insurance, HACOS would like to answer some common questions you may want to know.
1
What’s Chinese Social Insurance?
For the purpose of protecting the lawful rights and interests of foreigners employed in China to participate in social insurances and enjoy the benefits of social insurances, as well as for the purpose of strengthening the management of social insurances.
The insurance premiums shall be paid by the domestic work unit and the foreigner pursuant to the applicable regulations. The foreign staffs enjoy the rights as same as Chinese staff.
2
Who Should Buy Social Insurance?
All foreigners employed in China!
"Foreigners employed in China" means a person who is not of Chinese nationality holding employment certificates but foreigner residence permit certificates such as Work Permit for foreigners, foreign journalists, as well as Foreigner Permanent Residence Certificate, and who is employed lawfully with the territory of China.
*Moreover, if you have a record of paying social insurance in your own country and submit documentary proof to Chinese government, you can choose not buy Chinese social insurance.
3
What Happens If
You Don’t Buy Social Insurance?
According to the relevant provisions of the Social Insurance Law, the employer shall bear the responsibility of paying for the period of time, payment of late fee and fine due to non-payment of social security for expatriate employees.
At present, the system between various departments in China is continuously interconnected, the data of the enterprise will be shared with different departments, so the Immigration Department has the opportunity to request the foreigner’s social security record when the foreigner handles the work visa related matters.
Since regulations about social insurance are stricter and stricter, both individual and enterprise are suggested to purchase social insurance by laws.
If you have any question,
Welcome to contact HACOS!
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HACOS,Business Services Solutions Master