Maternity leave days in Beijing increases for its residents
On the November 26, 2021, the 35th meeting of the Standing Committee of the 15th Beijing Municipal People’s Congress voted and passed the decision on amending the “Regulations on Population and Family Planning of Beijing” which will come into force on the date of promulgation.
Below are the bullet point highlights of this new policy:
- The revised regulations abolished the birth restriction measures, clarifying that a couple can have three children.
- In addition to the maternity leave stipulated by the state (98 days), the maternity leave has increased from 30 days to 60 day. The total maternity leave days is now 158 days commencing immediately.
- Also, before their children reach the age of three, each couple can have five working days of parental leave each year.
- There are also some housing subsidies and favorable childcare polices which will be released soon.
Call on for last chance using special IIT treatment on year-end bonus
The preferential individual income tax treatment for the year-end one-time bonus for the tax residents will end on Jan 1, 2022, as the tax transition period comes to an end (tax transition period starts from Jan 1, 2019 and ends on Jan 1, 2022 Expatriates employees’ special tax exemption fringe benefits are also abolished. Nov and Dec payroll cycles become last chance to treat employees’ year-end bonus using this preferential IIT treatment. So that employer and employee should be clear about the coming changes and make adequate preparation and communication to reduce misunderstanding and reduce tax burden.
| Progressive Tax Bracket | Amount of Monthly Taxable Income (Y) (CNY) | Tax Rate (%) | Quick Deduction (CNY) |
| 1 | Y ≤ 3,000 | 3 | 0 |
| 2 | 3,000 < Y ≤ 12,000 | 10 | 210 |
| 3 | 12,000 < Y ≤ 25,000 | 20 | 1,410 |
| 4 | 25,000 < Y ≤ 35,000 | 25 | 2,660 |
| 5 | 35,000 < Y ≤ 55,000 | 30 | 4,410 |
| 6 | 55,000 < Y≤ 80,000 | 35 | 7,160 |
| 7 | Y >80,000 | 45 | 15,160 |
After change: the year-end bonus shall be combined into current month payroll and after the combined amount is calculated, the tax rate could be selected out of below. The tax rate can be quite high if the yearly accumulated salary level reaches the highest tax bracket after year-end bonus is being combined, as a result, individual income tax rate applies to year-end bonus part income will also be the same.
| Progressive Tax Bracket | Amount of Accumulated Taxable Income (X) (CNY) | Tax Rate (%) | Quick Deduction (CNY) |
| 1 | X ≤ 36,000 | 3 | 0 |
| 2 | 36,000 < X ≤ 144,000 | 10 | 2,520 |
| 3 | 144,000 < X ≤ 300,000 | 20 | 16,920 |
| 4 | 300,000 < X ≤ 420,000 | 25 | 31,920 |
| 5 | 420,000 < X ≤ 660,000 | 30 | 52,920 |
| 6 | 660,000 < X ≤ 960,000 | 35 | 85,920 |
| 7 | X > 960,000 | 45 | 181,920 |