Basically, three forms of Employment for Hong Kong Residents in the Mainland China ("Mainland") are available:
1Employing entities in the Mainland directly employ Hong Kong residents:Employing entities in the Mainland shall execute labor contracts with the directly employed Hong Kong residents; and
2Hong Kong residents engage in self-employed business in the Mainland;
3Entities overseas or in Taiwan, Hong Kong and Macao dispatch Hong Kong residents to the entities in the Mainland: Hong Kong residents dispatched by entities overseas have no need to establish labor relationship with the entities to which they are dispatched, but the entities overseas need to issue dispatch certificates, and execute dispatch agreements with the domestic entities.
Hong Kong residents can seek job opportunities in the Mainland in different ways, such as introduction by others, searching on recruitment websites, and entrusting job-hunting agencies.
According to the Decision of the State Council to Cancel a Group of Administrative Licensing Items and Other Items issued on July 28, 2018, Hong Kong residents are no longer required to apply for Employment Permits for Persons from Taiwan, Hong Kong and Macao ("Employment Permits") for employment in the Mainland. Starting from August 23 of the same year, the applications for Employment Permits were not accepted in all regions. For those accepted earlier but Employment Permits were not issued yet, relevant employing entities shall be promptly informed that Employment Permits are not required. Before July 28, 2018, Employment Permits within valid term can still be used as the materials to prove Hong Kong, Macao and Taiwan residents were employed in the Mainland, but such Employment Permits shall not be used since January 1, 2019.
The original Provisions on the Administration of the Employment of Taiwan, Hong Kong and Macao Residents in the Mainland were abolished from August 23, 2018. According to the Notice of the Ministry of Human Resources and Social Security on Matters concerning the Employment of Hong Kong, Macao and Taiwan Residents in the Mainland (the Notice), Hong Kong residents seeking jobs and employed in the Mainland can use their valid identity certificates (Residence Permits for Hong Kong, Macao and Taiwan Residents, Home Return Permits, etc.) to handle human resources and social security business, and use business licenses, labor contracts (employment contracts), wage payment vouchers or social insurance payment records, etc. as the proofs of employment in the Mainland.
At present, all regions are in the transitional stage of improving the relevant systems according to the Notice. Hong Kong residents working in the Mainland will be incorporated into the local employment and entrepreneurship management service system, and their employment registration and unemployment registration will be carried out by reference to those for mainland employees. However, the system implementation varies from region to region. Hong Kong residents coming to work in Chengdu are suggested to consult Chengdu Human Resources and Social Security Bureau (Tel.: (028)12333).
Chengdu Human Resources and Social Security BureauAccording to the Measures for the Application for and Issuance of Residence Permits for Hong Kong, Macao and Taiwan Resident (the Measures) issued by the General Office of the State Council, the Interim Regulation on Residence Permits and other relevant provisions, Hong Kong residents can apply for and obtain the Residence Permits for Hong Kong, Macao and Taiwan Residents (the Residence Permits) according to their free will.
Hong Kong, Macao and Taiwan residents can apply for the Residence Permits" if they have lived in the Mainland for more than half a year and meet one of the conditions that they are legally and stably employed, have legal and stable residence or continuously study in the Mainland. If the applicant is under the age of 16, his/her guardian can apply for the Residence Permit on his/her behalf. Hong Kong, Macao and Taiwan residents can apply for Residence Permits at the police station designated by the local public security organ or the Census Administration Certificate Issuing Hall by submitting the following materials:
Properly filled-in Registration Form for Applying Residence Permit for Hong Kong, Macao and Taiwan Residents;
Entry and exit certificates of Hong Kong, Macao and Taiwan residents;
Proof of residence, including house rental contract, housing ownership certificate, house purchasing contract or accommodation certificate issued by the leaser, employing entity or school; and
Employment certificates or study certificates; Employment certificates include industrial and commercial business licenses, labor contracts, labor relations certificates issued by employing entities or any other materials that can prove their legal and stable employment. The study certificates include the student ID cards and any other materials issued by schools that can prove their continuous study.
Hong Kong residents in the Mainland with residence permits has the rights to work, effect social insurance, and contribute withdraw and apply housing provident fund and can enjoy a series of public services stipulated by the state and the place of residence according to laws and regulations. In addition, they can also enjoy many conveniences such as traveling, accommodation, applying for driving license and motor vehicle registration.
The Residence Permit is valid for five years. For applying for the Residence Permit for the first time, the cost of production of Residence Permit will not be charged. If the Residence Permit expires, is damaged or becomes illegible or the place of residence is changed, the holder can apply for a new one. If the Residence Permit is lost, the holder can apply for replacement. Entry and exit certificates of Hong Kong, Macao and Taiwan residents are required to apply for new or replacement Residence Permits. Once the new Residence Permit is obtained, the old one shall be returned. For the more information of the Measures, please refer to the announcement of the General Office of the State Council.
General Office of the State CouncilWhen signing labor contract with Chengdu employers, Hong Kong residents need to know the specific terms and conditions of the contract, including the contract term, contents and place of work, salary composition, standard, payment mode and time, bonus and welfare system (if any), working hours, rest and vacation, contract termination conditions and probation period in order to protect their legal rights and interests. The payment and calculation methods of salary, overtime pay and living allowances (if any) shall be clearly listed in writing in the labor contract, and verbal promises of the same shall be avoided.
Hong Kong residents working in Chengdu also need to know the payment of social insurance and maintenance of commercial insurance by the employing entities for Hong Kong residents.
Hong Kong residents to work in the Mainland should pay attention to whether employing entities provide them with house, or house renting subsidies, or housing provident funds, etc. Besides, they should get to know in advance about the environment around the place of residence, transportation convenience, and security conditions.
According to the Regulations on Employment Management, employing entities in the Mainland shall execute labor contracts with Hong Kong residents and pay social insurance premiums for them in accordance with the Interim Measures for Hong Kong, Macao and Taiwan Residents’ Participation in Social Security Schemes in Mainland China. However, the specific implementation policies may vary from region to region.
There are six forms of participation in social insurance:
If a Hong Kong resident is employed in the Mainland and has executed a labor contract with an employing entity, he/she shall participate inbasic endowment insurance for employees, basic medical insurance for employees, employment injury insurance, unemployment insurance and maternity insurance following relevant laws. He/she and the employing entityshall pay social insurance premiums for him/her in accordance with relevant laws and regulations;
If a Hong Kong resident is self-employed in the Mainland, he/she shall participate in basic endowment insurance and basic medical insurancefor employees in accordance with relevant measures of the region he/she is registered in;
If a Hong Kong resident is flexibly employed in the Mainland, he/she shall participate in basic endowment insurance and basic medical insurance for employees in accordance with relevant measures of his/her region of residence ;
If a Hong Kong resident lives in the Mainland and holds a valid Mainland Residence Permit for Residents of Hong Kong, Macao and Taiwan but is not employed, he/she shall participate in basic endowment insurance and basic medical insurance for urban and rural residents according to his/her region of residence ;
If a Hong Kong resident receives university education in the Mainland, he/she shall follow the same medical care insurance policies as the Mainland students. He/she shall participate in basic medical insurance for urban and rural residents according to the regions his/her higher education institute is located; and
If a Hong Kong resident has already maintained asocial insurance relationship with an employing entity overseas or in Hong Kong, Macao and Taiwan, he/she may not participate in the local social insurance if any documentation recognized by relevant authorities is provided.
Since no specific detailed implementation rule is issued in Chengdu, Hong Kong residents and their employing entities should pay attention to the further issuance of relevant measures from time to time to ensure the compliance with policy requirements in practice.
Social insurance consists of basic endowment insurance, basic medical insurance, employment injury insurance, unemployment insurance and maternity insurance. Please refer to the relevant contents in Chapter 6 "Business Investment" hereof for the payment standard of social insurance premium in Chengdu. For the implementation of the social insurance system in Chengdu, Hong Kong residents can consult Chengdu Human Resources and Social Security Bureau (Tel.: (028)12333).
Chengdu Human Resources and Social Security BureauThe Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People's Bank of China, the Hong Kong and Macao Affairs Office of the State Council and the Taiwan Affairs Office of the State Council jointly formulated the Opinions of on Issues concerning the Enjoyment of Housing Provident Fund Treatment by Hong Kong, Macao and Taiwan Compatriots Employed in the Chinese Mainland (the Opinions) in November 2017. Housing Provident Fund Centers across the country shall formulate specific implementation measures according to the requirements of the Opinions to refine the policy provisions. According to this policy, Hong Kong and Macao compatriots employed in the Mainland may contribute to housing provident funds in accordance with the Regulation on the Administration of Housing Provident Funds and the relevant policies. The contribution base, contribution proportion and handling process, among others, shall be subject to the policy provisions consistent with those for the employees contributing to the funds in the Mainland. Hong Kong and Macao compatriots who have contributed the housing provident funds shall have the same rights as those enjoyed by Mainland employees to withdraw personal housing provident funds and apply for personal housing loans using housing provident funds. If being employed in more than one city in the Mainland, Hong Kong and Macao compatriots can go through the formalities for transferring the housing provident funds to another city. If Hong Kong or Macao compatriots cancel or terminate the labor (employment) relationship with their employing entities and return to Hong Kong or Macao, they can withdraw the balance in their individual housing provident fund accounts in accordance with relevant provisions. For the details of the Opinions, please refer to the announcement of the Hong Kong and Macao Affairs Office of the State Council.
Hong Kong and Macao Affairs Office of the State CouncilThe salaries earned by Hong Kong residents in the Mainland shall be subject to individual income tax in accordance with the individual Income Tax Law of the People's Republic of China, Regulation on the Implementation of the Individual Income Tax Law of the People's Republic of China and other relevant provisions. Hong Kong residents who have or do not have residence in the Mainland but have lived in the Mainland for one year shall pay individual income tax for their salaries earned both in and outside the Mainland according to relevant regulations.
If a Hong Kong resident is not employed by any Mainland enterprise and stays in the Mainland for no more than 183 days in any 12 months, and his/her salary is not paid or borne by any Mainland enterprise or permanent institution, his/her salary shall not be subject to individual income tax in the Mainland according to the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (the "Arrangement").
For more information of the Arrangement, please refer to the website of the State Taxation Administration.
State Taxation AdministrationSalaries earned by Hong Kong residents should first be classified according to sources: from Mainland or overseas:
Salaries actually earned by an individual while working in the Mainland, whether paid by domestic or overseas enterprise or individual employer, shall be deemed as earned in the Mainland; and
Salaries actually earned by an individual while working overseas, whether paid by domestic or overseas enterprise or individual employer, shall be deemed as earned overseas.
Individual income tax payment obligations will be determined according to the actual residence time of the individual in the Mainland. The specific tax calculation methods for ordinary employees and senior management personnel are shown in the table below:
| Residence time in the Mainland | Tax payment in the Mainland | Tax payment overseas | General formula (taxable amount) | ||
|---|---|---|---|---|---|
| Pay tax in the Mainland for the salary earned in the Mainland | Pay tax in the Mainland for the salary earned overseas | Pay tax overseas for the salary earned in the Mainland | Pay tax overseas for the salary earned overseas | ||
|
No more than 90/183 days (if tax agreement is applicable) |
Taxable | Tax free; Senior management personnel should be taxed according to director related clauses in relevant tax arrangements (see Note 1) | Tax free | Tax free | (Taxable income of the salary earned in the Mainland and overseas in the current month x applicable tax rate - quick deduction) × (salary paid in the Mainland in the current month ÷ total amount of the salary paid in the Mainland and overseas in the current month) × (working days in the Mainland in the current month ÷ actual days of the current month) |
|
More than 90/183 days (if tax agreement is applicable) |
Taxable | Tax free; Senior management personnel should be taxed according to director related clauses in relevant tax arrangements (see Note 2) | Taxable | Tax free | (Taxable income of the salary earned in the Mainland and overseas in the current month x applicable tax rate - quick deduction) × (working days in the Mainland in the current month ÷ actual days of the current month) |
| More than 1 year but less than 6 years | Taxable | Taxable | Taxable | Tax free | (Taxable income of the salary earned in the Mainland and overseas in the current month x applicable tax rate - quick deduction) ×[1-(salary paid overseas in the current month ÷ total amount of the salary paid in the Mainland and overseas in the current month) × (working days overseas in the current month ÷ actual days of the current month)] |
| More than 6 years | Taxable | Taxable | Taxable | Taxable | Taxable income of the salary earned in the Mainland in the current month x applicable tax rate - quick deduction |
Note 1: (Taxable income of the salary earned in the Mainland and overseas in the current month x applicable tax rate - quick deduction) × (working days in the Mainland in the current month ÷ actual days of the current month)
Note 2: (Taxable income of the salary earned in the Mainland and overseas in the current month x applicable tax rate - quick deduction) × [1-(salary paid overseas in the current month ÷ total amount of the salary paid in the Mainland and overseas in the current month) × (working days overseas in the current month ÷ actual days of the current month)]
Hong Kong residents directly employed by Mainland employing entities and only working in the Mainland
If a Hong Kong resident is directly employed by an employing entity in the Mainland, his/her salary shall be borne and paid by that employing entity. If his/her salary income obtained in the Mainland shall be subject to individual income tax in the Mainland, such individual income tax on his/her salary shall be withheld and remitted by the employing entity.
Individual income tax on salary shall be subject to 7-level progressive tax rate in excess of specific amount ranging from 3% to 45%. According to the Decision of the Standing Committee of the National People's Congress of the People's Republic of China on Amending the Individual Income Tax Law of the People's Republic of China deliberated and adopted by the Fifth Session of the Standing Committee of the Thirteenth National People's Congress, from October 1, 2018 (inclusive), salaries earned by Hong Kong residents in the Mainland shall be calculated and subject to individual income tax on a monthly basis, and the individual income tax threshold is 5,000 yuan. In addition, reasonable subsidies and allowances obtained by Hong Kong residents in the form of non-cash or cost-based reimbursement shall be exempted from individual income tax if certain conditions are met. Tax-free allowances include: housing allowances, food allowances, laundry fees, relocation income obtained due to employment or resignation in the Mainland, family visit fees, personal language training fees and child education allowances.
The calculation of individual income tax is based on a table of 7-level progressive tax rate in excess of specific amount (see the table below)
| Level | Taxable income | Tax rate | Quick deduction |
|---|---|---|---|
| 1 | Less than 3,000 yuan | 3% | 0 |
| 2 | 3,000 to 12,000 yuan | 10% | 210 |
| 3 | 12,000 to 25,000 yuan | 20% | 1,410 |
| 4 | 25,000 to 35,000 yuan | 25% | 2,660 |
| 5 | 35,000 to 55,000 yuan | 30% | 4,410 |
| 6 | 55,000 to 80,000 yuan | 35% | 7,160 |
| 7 | More than 80,000 yuan | 45% | 15,160 |
According to the provisions of the Notice of the State Administration of Taxation on Clarifying Some Issues Concerning the Implementation of Several Individual Income Tax Policies (GSF [2009] No.121), if an individual holds a post or is employed in a company and also serves as a director or supervisor, his/her director's fee and supervisor's fee shall be added with his/her salary income for the calculation of his/her individual income tax. Therefore, for Hong Kong businessmen setting up factories in the Mainland, whether they reside in the Mainland or not, or whether they are recorded in the business book, their dividends, bonuses, and the like incomes shall be taxed at a certain proportion, and their income items such as directors' fees, wages and salaries earned shall be subject to individual income tax.
For the details of individual income tax, please consult the State Taxation Administration Chengdu Taxation Bureau (Tel.: (028)12366).
State Taxation Administration Chengdu Taxation BureauFor the details of the Arrangement between the Mainland of China and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, please visit the website of State Taxation Administration.
State Taxation AdministrationChildren of Hong Kong residents may choose to receive pre-school, primary, secondary and tertiary education in the Mainland.
Children of Hong Kong residents may choose to attend a local kindergarten or international schools (schools that cater primarily for children of expatriates or non-Chinese residents) for pre-school education.
Entrance requirements are generally published on the official website of the Education Bureau/school. Parents or guardian of Hong Kong students should familiarise themselves with relevant education systems, admission requirements, application period, and other detailed information before enrolling their children. If Hong Kong residents opt to send their children to international schools, the application should be made to individual international school in accordance with their requirements. The schools will have sole discretion on whether or not to accept such application.
For more information on international schools approved by the Ministry of Education, or a list published by the Department of Chengdu Education Bureau containing kindergartens located in different districts and counties, please refer to the relevant website of the Ministry of Education (Chinese Version Only) and the Department of Chengdu Education Bureau (Chinese Version Only):
Ministry of Education Department of Chengdu Education BureauChildren of Hong Kong residents may choose to attend a local primary or secondary school, or an international school. Parents or guardian of Hong Kong students should familiarise themselves with relevant education systems, admission requirements, application period, and other detailed information before enrolling their children.
For more information on the application / admissions into primary or secondary schools in Chengdu, please refer to the websites of the Hong Kong&Macao Affairs of Chengdu Munipal People's Government and the Department of Chengdu Education Bureau (Chinese Version Only):
Hong Kong&Macao Affairs of Chengdu Munipal People's Government Department of Chengdu Education BureauIf Hong Kong residents choose to send their children to international schools, the application shall be filed directly with the schools in accordance with their requirements. The schools will have the sole discretion on whether or not to accept the applicants. In the event that Hong Kong students transfer to these international schools during a school term, they must present their transcripts of study and sit for entrance examinations organised by the schools.
For more information on international schools in Chengdu approved by the Ministry of Education, or a list containing kindergartens located in different districts and counties in Chengdu, please refer to the websites of the Ministry of Education (Chinese Version Only) and the Department of Chengdu Education Bureau (Chinese Version Only):
Ministry of Education Department of Chengdu Education BureauHong Kong residents who wish to apply for higher education institutions in the Mainland can sit for an entrance examination organised by the higher education institutions and universities that accept overseas Chinese, Hong Kong, Macao and Taiwan students. Some of the key admission requirements are as follows:
Students must have completed the sixth grade course of a registered Hong Kong secondary school or the third grade course of a Mainland high school or above. Students who are currently taking part in the abovementioned courses must provide supporting documents certified by the relevant schools;
Students must meet specific physical requirements by certain higher education institutions or courses (if applicable); and
For Hong Kong students: Hong Kong Permanent Resident Identity Card and Mainland Travel Permit for Hong Kong and Macao Residents or Non-Permanent Resident Identity Card and Mainland Travel Permit for Hong Kong and Macao Residents.
As for the examination content and requirement, please refer to the Syllabus of Joint Entrance Examination held by Mainland Higher Education Institutions for Overseas Chinese, Hong Kong, Macao and Taiwan Students formulated by the Ministry of Education.
For more information, please refer to the websites of the Hong Kong Examinations and Assessment Authority or Mainland college enrollment information for Hong Kong, Macao and Taiwan students (Chinese Version Only):
Hong Kong Examinations and Assessment Authority Mainland college enrollment information for Hong Kong, Macao and Taiwan studentsIn addition, according to the Notice issued by the Ministry of Education on Fine-tuning the Work on Admission of Hong Kong Students by some Mainland Higher Education Institutions Waiving the Requirements on Joint Examination for them in the year of 2012 (Jiao Gang Ao Tai Han [2011] No. 72), starting from 2012 onwards, a number of universities and higher education institutions (such as Sichuan University, Southwestern University of Finance and Economics, Chengdu University of Traditional Chinese Medicine and Sichuan Normal University in Sichuan province, Xinan University, Chongqing University and Southwest University of Political Science and Law in Chongqing; Xi’an Jiaotong University, Shaanxi Normal University and Northwest University in Shaanxi province. ) may recruit Hong Kong students who meet certain requirements / qualifications without the need to sit for the entrance examinations. The admission requirements may vary from discipline to discipline and from institution to institution, prospective students can refer to enrollment brochures of individual higher education institutions.
For more detailed information, please refer to the official websites of the Education Bureau of the Government of the Hong Kong Special Administrative Region and the Department of Chengdu Education Bureau:
Education Bureau of the Government of the Hong Kong Special Administrative Region Department of Chengdu Education BureauThe Ministry of Finance and the Ministry of Education have promulgated the Measures for the Administration of Scholarships for Hong Kong, Macao and Overseas Chinese Students(hereinafter referred to as "Measures") (《港澳及華僑學生獎學金管理辦法》),which have been distributed to the local finance departments, education departments of all provinces, autonomous regions and municipalities and all higher education institutions under the Central Government on setting up special scholarships for Hong Kong, Macao and overseas Chinese students studying in the Mainland. "Grand Prize" scholarship is added for Hong Kong and Macao students by making reference to the scholarship system for local students. The number of scholarships and rates of scholarship awards have been enhanced. For details of the above Measures, please refer to the announcement of the Ministry of Education(Chinese Version Only):
Ministry of EducationHong Kong and the Mainland have reached an agreement on mutual recognition of higher education credentials and the Memorandum of Understanding between the Mainland and Hong Kong on Mutual Recognition of Academic Degrees in Higher Education (hereinafter referred to as "Memorandum") was signed on July 11, 2004.
According to the Memorandum, Hong Kong and the Mainland would each set out its list of accredited higher education institutions and universities and regularly update the lists. Diplomas, including a bachelor's or higher degrees awarded by accredited higher education institutions and universities of one side will be recognised by the other. A summary of the main points made in the Memorandum is as follows:
Students who have received a bachelor's degree from accredited mainland higher education institutions or universities may apply to study in higher education institutions of Hong Kong for a graduate degree or vocational training.
Students who have received a graduate degree from accredited mainland higher education institutions or universities may apply to study for a PhD in a higher education institution of Hong Kong.
Students who have received a bachelor's degree with good grades from accredited Mainland higher education institutions or universities and have successfully completed high-quality papers or research work may apply to study for a PhD in a higher education institution of Hong Kong.
Students who have received a bachelor's degree from accredited Hong Kong higher education institutions or universities may apply to study for a graduate degree or vocational training in institutions of higher education in the Mainland.
Students who have received a graduate degree from accredited Hong Kong higher education institutions or universities may apply to study for a PhD in institutions of higher education in the Mainland.
Students who have received a bachelor's degree with good grades from accredited Hong Kong higher education institutions or universities and successfully completed high-quality papers or research work may apply to study for a PhD in institutions of higher education in the Mainland.
Both sides recognise and respect the autonomy or discretion of higher education institutions and universities of each other to recruit students according to their rules and procedures.
For more detailed information of the Memorandum, please refer to the website of the Ministry of Education:
Ministry of Education