China

HR and HR Software Guide

Country Overview

China has the second largest economy in the world and is a prominent economic and technological dominion in eastern Asia. Additionally, the country has the world’s largest hydroelectric power potential and numerous mineral resources. China can be a complicated country to do business for newcomers since it has several provinces, each with its own set of criteria.

Capital City: Beijing

Currency: Yuan Renminbi (CNY)

Principal Languages: Mandarin, Cantonese

Government: Communist party-led state

In China, the types of employment relationships are: 

  • Fixed-term labor contracts 
  • Labor contracts without a fixed term  
  • Labor contracts that conclude at the completion of specific tasks 

A formal employment agreement is required to establish an employment relationship under China’s Labor Contract Law. A part-time employee who works only 24 total hours per week and four average hours per day, is subject to various obligations and may be hired under a verbal contract.

Employees are entitled to the following statutory national holidays: 

  • January 1 – New Year’s Day 
  • January 2 – New Year’s Holiday 
  • January 3 – New Year’s Holiday 
  • February 11 – Spring Festival Eve 
  • February 12 – Chinese New Year 
  • February 13 – Spring Festival Golden Week Holiday 
  • February 14 – Spring Festival Golden Week Holiday 
  • February 15 – Spring Festival Golden Week Holiday 
  • February 16 – Spring Festival Golden Week Holiday 
  • February 17 – Spring Festival Golden Week Holiday 
  • March 8 – International Women’s Day 
  • April 3 – Qing Ming Jie Holiday 
  • April 4 – Qing Ming Jie Holiday 
  • April 5 – Qing Ming Jie 
  • May 1 – Labour Day 
  • May 2 – Labour Day Holiday 
  • May 3 – Labour Day Holiday 
  • May 4 – Labour Day Holiday 
  • May 4 – Youth Day 
  • May 5 – Labour Day Holiday 
  • June 1 – Children’s Day 
  • June 14 – Dragon Boat Festival 
  • August 1 – Army Day 
  • September 21 – Mid-Autumn Festival 
  • October 1 – National Day 
  • October 2 – National Day Golden Week Holiday 
  • October 3 – National Day Golden Week Holiday 
  • October 4 – National Day Golden Week Holiday 
  • October 5 – National Day Golden Week Holiday 
  • October 6 – National Day Golden Week Holiday 
  • October 7 – National Day Golden Week Holiday

Accounting

The accounting standards are China Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

Tax Rates 

Corporate Tax 

The corporate tax rate in China is 25%.  

Value Added Tax (VAT) 

The standard VAT rate is 13% for most taxable goods and services.

According to the Regulations on Employment Services and Employment Management, employees must provide consent before their data is used.  

The country recently passed PRC Cyber Security Law. This law states that before collecting any personal information about a user, a network operator must mention the purpose and use of the data collection. 

The Criminal Code and the PRC Criminal Code regulate the bribery of public officials. Penalties (for individuals and legal entities) include imprisonment for up to 10 years, confiscation of assets resulting from bribes, and additional fiscal penalty on the company and officials. 

The Criminal Code and the PRC Anti-Unfair Competition Law (AUCL) govern private bribery. Penalties (for individuals and legal entities) include imprisonment up to 10 years and additional criminal penalties imposed on the company and officials. 

Simplify workforce management in China with Mihi HR Software.

  • Accelerate employee onboarding with established workflows and guided processes that allow your new employees to hit the ground running from day one.
  • Improve employee time tracking and leave management while ensuring compliance with local labor laws and work-time regulations.
  • Store, manage, and track employee data on a single, secure system. Improve access and visibility, while built-in guidelines help you maintain legal compliance and audit readiness.
  • Turn workforce data into actionable insights with extensive HR reporting and analytics. Make better, more informed decisions and accurately assess the status of your global teams.
  • Provide your employees with the support they need with 24/7 access to our Employee Helpdesk.
  • One HR software for your global needs
  • Ensured compliance with in-country employment and labor laws
  • Connectivity and integrations with ERP and Payroll systems
  • Better workforce data and increased visibility of global teams
  • Supporting 170+ countries and localized in 17+ languages
  • Improved employee experience with employee self-service functionality and 24/7 employee support

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