Employment Tax Arrangement for Cross Border Employees
Cross-border employees are exposed to both Hong Kong and PRC tax rules. The employers and the employees need to handle the employment tax issue with care as cross-border employment will not only affect the employee but also expose the Employer into Permanent Establish risk which will expose the Employer into PRC tax. We can assist you to management the tax exposure and risk.
Due to cross-border employment or frequent trips to the Mainland, employees may fall into the tax nets of Hong Kong and China. Both employers and employees need to be careful about the employment tax issue because cross-border employment affects not only employees but also employers at the risk of being deemed have permanent establishments in the PRC so that employers may bear the Chinese tax.
Some of these situations can be avoided and we can help you manage the risks in this area in advance.