On November 24, 2010, the Shenzhen municipal government issued a Shenfu [2010] No. 176 entitled “Circular on Printing and Distributing the Tentative Measures of Shenzhen City on Administration of Housing Provident Fund (“HPF”)”, stating that all the State organs, public institutions, enterprises, private non-enterprise entities, social groups and their on-the-job workers and staff in Shenzhen should pay HPF monthly compulsively from Dec 2010. Later on December 16, the Shenzhen local tax bureau issued a circular on Transition Issues of the Individual Income Tax Reduction in the Public Housing Fund System, instructing the maximum amount of HPF which can be deductable for Individual Income Tax (“IIT”) purpose.
The key points of these two circulars are as follows:

Ø All entities in Shenzhen, including foreign invested companies, foreign companies (“collectively referred to as FIEs”), will be subject to the HPF effective from 20th December 2010;
Ø All registered employees, including Shenzhen resident employees and non-Shenzhen resident employees, will have their own special HPF account;
Ø There is limitation for HPF to be deductable from Individual Income Tax (“IIT”);
Ø These Measures shall prevail in case of any discrepancy between relevant provisions of Shenzhen city on housing provident fund promulgated prior to these Measures.

To know more on the practical implementation scheme as well as some legal and tax related implications resulting from this circular, we invite you to join the HR Forum Meeting on March 11th (Friday) and get professional advice from the expert in the field Mr. Sisi Xu.

Sisi is an USA Certified Internal Auditor (CIA); she also possesses a Ph. D in Management and Business Administration. As a senior manager of Dezan Shira & Associates (Shenzhen office) in Corporative Accounting Services, Sisi and her colleagues offer finance & HR services to foreign invested clients across various industries.

Tentative Agenda:
09:00 – 09:30 am - Registration
09:30 - 09:45 am - HR Managers & companies Introduction
09:45 - 10:30 am - Housing Fund presentation, experience/case sharing & recommendations by Ms. Sisi Xu
10:30 - 11:00 am - Q&A
11:00 - 11:30 am - HR Forum Elections and next HR Meeting/Topics
11:30 - 12:00 am - AOB
In case you have already questions you would like to ask, please send back to mlioleva@euccc.com.cn in advance so that we can ask the expert to prepare detailed answer to your inquiry.

To register for this meeting, please confirm via email by March 10th (Thu) to Mr. Adam Jiang at prd@euccc.com.cn

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