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Legal Briefing
Taxing times: employers to pay Union Reserve Fund for Beijing-based employees
Practice Area: Corporation Tax
Sector: Business services
Jurisdiction: China
Published: 02 December 2011
Law Firm: DLA Piper
Overview
On 1 July 2011, the Beijing Federation of Trade Unions and the Beijing Tax Bureau jointly issued a circular on the collection of Trade Union Reserve Funds by Tax Authorities. Accordingly, the Beijing Tax Bureau will collect the Trade Union Reserve Funds from each enterprise in Beijing at a rate of 2% of the total local payroll. The collection process is to commence no later than 1 January 2012 and it will be mandatory for each enterprise to pay such funds regardless of whether or not it has established a trade union.
In this briefing, DLA Piper summarises the key features of the new requirement, the uncertainty and challenges facing Beijing-based businesses and some strategic recommendations for employers.
To learn more, click 'View Briefing'.
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