China to introduce social security tax on foreigners

China is considering collecting a new tax on foreign workers and their employers, as it extends its social security program to cover the 600,000 foreigners who work in the country, the Wall Street Journal reported. The amounts due will vary according to location, but foreigners working as executives in major cities are expected to face new monthly bills of about US$100 for access to retirement benefits and subsidized fees at public hospitals. Meanwhile, employers would pay three times that amount per employee. The new tax was referred to in a low-profile provision in China’s Social Insurance Law, which was published last October and highlighted in state media Tuesday. It is set to take effect July 1. It is unclear how tax collection will be enforced and whether it is voluntary or mandatory.