Payroll · Social insurance · Expatriate IIT

Payroll and expatriate tax, filed correctly and explained in English

Two things go wrong most often with expatriate tax in China: the six-year rule is misapplied, and the annual reconciliation is missed. Both are expensive. We run the payroll, file the withholding, and tell your expatriate staff in English what they owe and why.

  • Local and expatriate staff on one payroll — social insurance and housing fund handled with it, not separately
  • Six-year rule applied properly — the residence analysis documented, not assumed
  • Annual reconciliation filed — the March-to-June filing that individuals frequently miss
  • English payslips and explanations — so your secondees are not guessing at their tax

Timing

How the year runs

Monthly withholding, plus one annual exercise that catches people out.

Monthly — by the 15th

Payroll computed, social insurance and housing fund accrued, IIT withheld and filed.

Quarterly — reporting

Headcount and wage reporting to the authorities where required.

March to June — annual reconciliation

The comprehensive income reconciliation for individuals who need one. Missing it leaves an open liability.

On arrival and departure

Residence-day tracking for expatriates, so the six-year position is evidenced from the start rather than reconstructed.

Scope of services

What the work actually covers

Written out in detail on purpose. If you are comparing firms, this is the list to put side by side with theirs.

Deliverables

What lands on your desk

Monthly payroll register

Gross to net, per employee, with employer costs shown separately.

Payslips

In English for expatriate staff, Chinese or bilingual for local staff.

Filed IIT returns

Monthly withholding and the annual reconciliation, with confirmations retained.

Residence-day record

A running record for each expatriate, so the tax position is evidenced.

Process

From first email to finished work

01  You send the basics

Entity type, what has been requested, and when it is due. One email is enough to start.

02  Scope and fixed fee

We come back within one business day with a written scope, a fixed fee and dates.

03  Documents and fieldwork

One document request list. We work from it, and visit site only where the work genuinely needs it.

04  Delivery and follow-through

Signed output in English or bilingual, plus support through whatever filing follows.

Fees

How we price it

Fixed, in writing, before fieldwork starts. The drivers below are the ones that actually move the number — we tell you which of them apply to you in the first reply, not after you have signed.

  • Entity size, number of bank accounts and transaction volume
  • Whether prior-year figures are audited or management-prepared
  • Reporting language: English, Chinese, or bilingual
  • Whether group reporting requires a GAAP reconciliation
  • How much of the bookkeeping we have to rebuild first

FAQ

Questions about payroll and expatriate tax

Can you handle staff seconded from our parent?

Yes. Secondments are where the six-year rule and any double-tax treaty position matter most. We look at who actually bears the cost, how long the person will be in China, and what the treaty says, and we document it.

What is the six-year rule?

Broadly, an individual with no domicile in China who has not been resident for six consecutive full years is not taxed on foreign-source income not borne by a Chinese entity. A single year of absence over 30 days can reset the count. It has to be evidenced day by day — an assumption is not a defence.

Do you file the annual IIT reconciliation?

Yes, and we prompt the individuals who need one. It runs from March to June and it is the filing that most often gets missed by expatriates who assume their employer has dealt with everything.

What does it cost?

Payroll is priced per head per month, with a separate fee for the annual reconciliation per individual. Tell us your headcount and we will quote it in writing.

Do you handle social insurance exemptions for foreign staff?

Where a bilateral agreement applies, we apply for the exemption and keep the evidence on file. Where it does not, contributions are due like any other employee.

Tell us your headcount and where your staff are from.

A headcount, a nationality mix and a start date are enough for a written quote.