Working

Overview

Category of employment for Hong Kong residents in the Mainland

In general, there are three types of employment arrangements for Hong Kong residents working in the Mainland:

  1. Hong Kong residents directly employed by the Mainland employers with whom the Mainland employers should enter into employment contracts;
  2. Hong Kong residents who are self-employed running businesses in the Mainland;
  3. Hong Kong residents assigned by foreign entities or entities incorporated in Taiwan, Macao or Hong Kong to work in the Mainland. In such cases, there is no need for the individual to establish a labour relationship with the entity receiving the individual in the Mainland, but the foreign entity which sends the individual shall issue the proof of assignment and sign secondment agreement with the local receiving entity.

For those who have established labour relations with a foreign entity or with an entity in Taiwan, Hong Kong and Macao, and have been assigned to the Mainland for less than three months, they will not be required to apply for a Taiwan, Hong Kong and Macao Expatriate's Work Permit (hereinafter referred to as "Work Permit"). For those who have been assigned to the Mainland with an accumulated period exceeding three months within one year, a Work Permit is required as in the case of direct employment.

Things to note for working in the Mainland

Hong Kong residents can seek job opportunities through different channels, for instance, by personal referral, through recruitment website or employment agency.

For Hong Kong residents working in Beijing, the following points should be taken into consideration:

Application for work permits

The employer who intends to hire or accept assigned Hong Kong residents should apply for a Work Permit for the individual(s) being hired and assigned. Hong Kong residents who fall within the "self-employed" category should apply for work permits themselves.

To apply for a work permit for a Hong Kong resident, the employer shall submit supporting documents to the Beijing Municipal Human Resources and Social Security Bureau, including the original physical examination certificate (medical health certificate issued or certified by the Beijing Entry-Exit Inspection and Quarantine Bureau), Home Visit Re-entry Permit, labour contract, etc.

As for Hong Kong people who wish / intend to run a self-employed business in the Mainland, the documents which should be filed with the Beijing Municipal Human Resources and Social Security Bureau by themselves are as follows: Individual Proprietorship Business License, medical health certificate and Home Visit Re-entry Permit.

For more detailed information on work permits, please refer to the website of Beijing Municipal Human Resources and Social Security Bureau (Chinese Version Only): http://www.bjrbj.gov.cn/

Penalty for failure to comply with work permit requirements

According to the Employment Regulations, if the employer fails to apply for work permits for its Hong Kong employees, the relevant labour and social security authorities shall order it to remedy the situation within a specified time, and a penalty in the amount of RMB 1,000 may be imposed. On the other hand, the labour contract between the employer and Hong Kong employees will also become invalid and the rights and obligations of the two parties will no longer be protected by the law.

In addition, the employer shall cancel work permits after termination, dissolution or expiration of the employment with Hong Kong residents. If the employer fails to do so, the relevant labour and social security authorities shall order it to remedy the situation, and a penalty in the amount of RMB 1,000 may be imposed.

"Employment Agreement" (《就業協議書》) and "Employment Registration Certificate" (《就業報到證》)

In June 2017, the General Office of the Ministry of Education issued the Notice on Fine-tuning the Work on Employment Services for the Current Year Hong Kong, Macao and Taiwan Graduates from Higher Education Institutions in the Mainland (《教育部辦公廳關於做好在內地(祖國大陸)普通高校就讀的港澳台應屆畢業生就業服務工作的通知》), providing employment information services and guidance to Hong Kong and Macao graduates. Those who have intention for employment and who meet the requirements will be issued “Employment Agreement” (《就業協議書》) and “Employment Registration Certificate”(《全國普通高等學校本專科畢業生就業報到證》,《全國畢業研究生就業報到證》), so as to facilitate them to enter the employment market in the Mainland.

Social Security

According to the Employment Regulations, Mainland employers should sign labour contracts with their Hong Kong, Macao and Taiwan employees and make social security payments in accordance with the Interim Regulations on the Collection and Payment of Social Security Premiums. However, detailed implementation rules may vary from one region to another.

Enrollment in Social security may fall into three categories as follows:

  1. Hong Kong residents, who are employed in the Mainland and have signed a labour contract with an employer, should enroll in the social security of the region where the employer is located;
  2. Hong Kong residents, who run a self-employed business in the Mainland, should make social security payments for their employees, and;
  3. Hong Kong residents who have established employment relationship with foreign employers or employers in Hong Kong, Macao and Taiwan and are assigned to the Mainland may not need to enroll in social security if they have not entered into any direct employment contract with employers in the Mainland.

For more detailed information related to social security, please refer to Beijing Social Security Online Services website operated by Beijing Municipal Social Security Fund Management Center (Chinese Version Only):http://www.bjrbj.gov.cn/csibiz/home/

Housing benefit

In November 2017, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People's Bank of China, the Hong Kong and Macao Affairs Office of the State Council and the Overseas Chinese Affairs Office of the State Council jointly formulated the Opinions on Issues concerning the Enjoyment of Housing Provident Fund Treatment by Hong Kong, Macao and Taiwan Compatriots Working in the Mainland (hereinafter referred to as "Opinions")(《關於在內地(大陸)就業的港澳台同胞享有住房公積金待遇有關問題的意見》). Housing provident fund centres across the country will issue specific implementation measures according to the Opinions and work out details in line with the prevailing policies and regulations. Under the policy, Hong Kong and Macao compatriots working in the Mainland may contribute to housing provident funds in accordance with the Regulation on the Management of Housing Provident Fund (《住房公積金管理條例》) and relevant policies. The deposit base, deposit ratios and processing procedures, among others, shall be subject to the policy provisions consistent with those for the employees contributing to the funds in the Mainland. Hong Kong and Macao compatriots who have contributed to housing provident funds will enjoy rights to withdraw from their own housing provident funds and apply for individual housing loans similar to those of Mainland employees. Those who relocate to other cities in the Mainland can apply for transfer of housing provident funds. Those who have dissolved or terminated their employment contracts with their employers and return to Hong Kong or Macao may withdraw the balance from their housing provident fund accounts in accordance with the relevant provisions.

For more information on the Opinions mentioned above, please refer to the announcement of the Hong Kong and Macao Affairs Office of the State Council (Chinese Version Only):http://www.hmo.gov.cn/xwzx/zwyw/201712/t20171213_1602.html

Individual Income Tax

Individual Income Tax on salaries

Wages and salaries earned by Hong Kong people from the Mainland should be subject to Individual Income Tax in accordance with the People’s Republic of China Individual Income Tax Law (Order of the President of the People's Republic of China [2011] No. 48) and relevant regulations. Hong Kong people, who have a domicile in the Mainland; or do not have a domicile but have lived in the Mainland for over one year, shall pay Individual Income Tax on the income derived inside and outside the Mainland in accordance with the prevailing tax regulations.

Hong Kong people who sign labour contracts in Hong Kong and the Mainland respectively

According to the Arrangement between the Government of the People's Republic of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (hereinafter referred to as "PRC-Hong Kong Tax Arrangement"),  provided that the Hong Kong people are not employed by a Mainland company, their total period of stay in the Mainland does not exceed 183 days within any 12-month period, and their salaries are not borne or paid by any company or permanent establishment in the Mainland, then their salaries should not be subject to Individual Income Tax in the Mainland.

Firstly, salaries earned by Hong Kong people shall be distinguished as domestic- and foreign-sourced income:

In addition, the Individual Income Tax (IIT) liability shall be determined based on the period of residence in the Mainland (please see the table below):

Time of residence in the Mainland Mainland Payment Foreign Payment Formula Applied (Tax Payable)
Domestic Payment Foreign Payment Domestic Payment Foreign Payment

1 day -90/183 days (183 days in accordance with the PRC-Hong Kong Tax Arrangement)

Taxable Tax-free; Senior executives up to the director provisions of applicable PRC-Hong Kong Tax Arrangement need to be taxed Tax-free Tax-free (Taxable income from monthly salary paid inside and outside China * applicable tax rate - quick deduction) * (monthly salary paid inside China / total monthly salary paid inside and outside China) *(number of days inside China in the month / number of days in the month)

(Note: For senior executives up to the director provisions of applicable PRC-Hong Kong Tax Arrangement, see Note 1)

91/184 days (184 days in accordance with the PRC-Hong Kong Tax Arrangement) - less than one year

Taxable Tax-free; Senior executives up to the director provisions of applicable PRC-Hong Kong Tax Arrangement need to be taxed Taxable Tax-free (Taxable income from monthly salary paid inside and outside China * applicable tax rate - quick deduction) * (number of days inside China in the month / number of days in the month) (Note: For senior executives up to the director provisions of applicable PRC-Hong Kong Tax Arrangement, see Note 2)

1-year,less than 5-year

Taxable Taxable Taxable Tax-free (Taxable income from monthly salary paid inside and outside China * applicable tax rate - quick deduction) * [1 - (monthly salary paid outside China / total monthly salary paid inside and outside China) * (number of days outside China in the month / number of days in the month)]

Over 5-year

Taxable Taxable Taxable Taxable Taxable income from monthly salary paid inside and outside China * applicable tax rate - quick deduction

DTA refers to the relevant double taxation agreement / arrangement

Note 1: (Total monthly salary paid inside and outside the Mainland x IIT rate - quick deduction) x (No. of days in the Mainland in the month / No. of days in the month)
Note 2: (Total monthly salary paid inside and outside the Mainland x IIT rate - quick deduction) x [1 - (Monthly salary paid outside the Mainland / Total monthly salary) x (No. of days outside the Mainland in the month / No. of days in the month)]

Hong Kong people who are employed directly by the Mainland employer and work in the Mainland only

For Hong Kong people directly employed by the Mainland employers, their salaries are borne by their employers. Based on the source of their salaries, they are subject to Individual Income Tax which will be withheld by their Mainland employers.

Applicable Individual Income Tax rates range from 3% to 45%, which span across seven income bands on a progressive basis. Individual Income Tax on salaries earned by Hong Kong people are calculated on a monthly basis, with a monthly standard deduction in the amount of RMB 4,800. In addition, some non-cash benefits or allowances received by Hong Kong people on a reimbursement basis may be exempt from Individual Income Tax under certain conditions. Such tax-exempt items include housing allowance, meal allowance, laundry expenses, relocation expenses, home leave allowance, language training expenses, and children's education subsidies.

According to the Circular of the State Administration of Taxation on Issues Concerning the Implementation of Several Policies on Individual Income Tax (Guoshuifa [2009] No. 121), Hong Kong people who run a factory in the Mainland and takes up the role of a director as well as performs managerial duties, his / her income and director's fees arising from such duties should also be subject to Individual Income Tax.

For more information on Individual Income Tax, please refer to the website of the Beijing Local Taxation Bureau (Chinese Version Only): http://www.tax861.gov.cn/; or call the Beijing Local Taxation Bureau's service hotline 8610 -12366.

For more information about the PRC-Hong Kong Tax Arrangement, please visit the website of the State Administration of Taxation:http://www.chinatax.gov.cn/eng/

Education

Children of Hong Kong residents may choose to receive pre-school, primary, secondary and tertiary education in the Mainland.

Pre-school education

Children of Hong Kong residents may choose to attend local kindergartens or international schools (schools that cater primarily for children of expatriates or non-Chinese residents) for pre-school education.

Entrance requirements are set by individual schools and are generally published on their official websites. If Hong Kong residents would like to enroll their children in a local kindergarten, they may contact the kindergarten directly. Whether or not the children will be accepted will be subject to the discretion / decision of the individual kindergarten. If Hong Kong residents opt to send their children to international schools, the application should be made to the individual international school in accordance with their requirements. The schools will have sole discretion on whether or not to accept such application.

For more information on international schools approved by the Ministry of Education, or a list published by the Beijing Municipal Commission of Education containing kindergartens located in different districts and counties, please refer to the relevant website of the Ministry of Education (Chinese Version Only) and the Beijing Municipal Education Commission (Chinese Version Only):

http://www.jsj.edu.cn

http://www.bjedu.gov.cn/

Primary and secondary education

Children of Hong Kong residents may choose to attend a local primary or secondary school, or an international school. Parents or guardian of Hong Kong students should familiarise themselves with the relevant education systems, admission requirements, application period, and other detailed information before enrolling their children.

If Hong Kong people choose to send their children to a local primary or secondary school, they should first visit the information collection website of the Beijing Municipal Education Commission and complete an online registration. A written application should also be submitted to the Overseas Chinese Affairs Office of the district or county government in the region in which the parents or the guardian live. After obtaining the required government approval, Hong Kong residents may then contact the school(s) of their choices, and provide documentation as required by the school(s). Discretion rests with the individual school whether to admit Hong Kong students based on local regulations on the size of the classes and the circumstances of the students. Once admitted, those Hong Kong students could attend schools / classes as non-Beijing resident students on a temporary basis. For more information on applications / admissions into primary or secondary schools as well as attending schools / classes as non-Beijing resident students in Beijing, please refer to the website of the Overseas Chinese Affairs Office of the People's Government of Beijing Municipality (Chinese Version Only) and Beijing Municipal Education Commission (Chinese Version Only):

http://www.bjqb.gov.cn/

http://www.bjedu.gov.cn/

If Hong Kong residents choose to send their children to international schools, application shall be filed directly with the schools in accordance with their requirements. The schools will have the sole discretion on whether or not to accept the applicants. In the event that Hong Kong students transfer to these international schools during a school term, they must present transcripts of study and sit for entrance examinations organised by the schools. After admission, the relevant schools should file the students' information with the Beijing Municipal Education Commission for record.

For more information on international schools approved by the Ministry of Education, or a list published by the Beijing Municipal Commission of Education containing kindergartens located in different districts and counties, please refer to the websites of the Ministry of Education (Chinese Version Only) and the Beijing Municipal Education Commission (Chinese Version Only):

http://www.jsj.edu.cn

http://www.bjedu.gov.cn/

List of major international schools and contact information

The information of the international schools approved by the Ministry of Education is gathered from the websites of major embassies and the Beijing Municipal Education Commission and is for reference only. For more information, please refer to the website of the Beijing Municipal Education Commission (Chinese Version Only): http://www.bjedu.gov.cn/

List of major international schools and contact information

BJO makes no guarantees, expressed or implied, as to the accuracy, completeness, content, and timeliness of the information contained herein, nor will it be liable for any damages which may arise from the use of the information. Readers are responsible for checking the accuracy, completeness, content, and timeliness of all information, and seek professional advice as necessary. Likewise, information listed above is not intended to be an advertisement or solicitation of business. BJO does not endorse any of the products, services or information referenced therein.

Tertiary education

Entrance examination

Hong Kong residents who wish to apply for higher education institutions in the Mainland can sit for an entrance examination organised by the higher education institutions and universities that accept overseas Chinese, Hong Kong, Macao and Taiwan students. Some of the key admission requirements are as follows:

  1. Students must have completed the sixth grade course of a registered Hong Kong secondary school or the third grade course of a Mainland high school or above. Students who are currently taking part in the abovementioned courses must provide supporting documents certified by the relevant schools;
  2. Students must meet specific physical requirements set by certain higher education institutions or courses (if applicable); and
  3. For Hong Kong students: Hong Kong Permanent Resident Identity Card and Home Visit Re-entry Permit or Non-Permanent Resident Identity Card and Home Visit Re-entry Permit.

As for the examination content and requirement, please refer to the Syllabus of Joint Entrance Examination held by Mainland Higher Education Institutions for Overseas Chinese, Hong Kong, Macao and Taiwan Students formulated by the Ministry of Education.

For more information, please refer to the websites of the Hong Kong Examinations and Assessment Authority or Mainland college enrollment information for Hong Kong, Macao and Taiwan students (Chinese Version Only):

http://www.hkeaa.edu.hk/en/ipe/jee/index.html#8

http://www.gatzs.com.cn

Exemption from Admission Examination

In addition, according to the Notice issued by the Ministry of Education on Fine-tuning the Work on Admission of Hong Kong Students by some Mainland Higher Education Institutions Waiving the Requirement on Joint Examination for them in the year 2012 (Jiao Gang Ao Tai Han [2011] No. 72), starting from 2012 onwards, a number of Beijing universities and higher education institutions, such as Peking University, may recruit Hong Kong students who meet certain requirements / qualifications without the need to sit for the entrance examinations. Pursuant to the Notice issued by the Ministry of Education on Fine-tuning the Work on Admission of Hong Kong Students by some Mainland Higher Education Institutions Waiving the Requirement on Joint Examination for them in the year 2014 (Jiao Gang Ao Tai Ban [2013] No. 537), Hong Kong students who have sat for the Hong Kong Diploma of Secondary Education Examination can apply for open enrollment in the Mainland higher education institutions. The admission requirements may vary from discipline to discipline and from institution to institution, prospective students can refer to the enrollment brochures of individual higher education institutions.

For more detailed information, please refer to the official websites of the Education Bureau of the Government of the Hong Kong Special Administrative Region and the Beijing Municipal Education Commission (Chinese Version Only):

http://www.edb.gov.hk/en/

http://www.bjedu.gov.cn/

Scholarships

The Ministry of Finance and the Ministry of Education have promulgated the Measures for the Administration of Scholarships for Hong Kong, Macao and Overseas Chinese Students (hereinafter referred to as "Measures") (《港澳及華僑學生獎學金管理辦法》), which have been distributed to the local finance departments, education departments of all provinces, autonomous regions and municipalities and all higher education institutions under the Central Government on setting up special scholarships for Hong Kong, Macao and overseas Chinese students studying in the Mainland. "Grand Prize" scholarship is added for Hong Kong and Macao students by making reference to the scholarship system for local students. The number of scholarships and rates of scholarship awards have been enhanced. For details of the above Measures, please refer to the announcement of the Hong Kong and Macao Affairs Office of the State Council (Chinese Version Only):http://www.hmo.gov.cn/xwzx/zwyw/201712/t20171213_1602.html

Mutual recognition of academic degrees in higher education

Hong Kong and the Mainland have reached an agreement on mutual recognition of higher education credentials and the Memorandum of Understanding between the Mainland and Hong Kong on Mutual Recognition of Academic Degrees in Higher Education (hereinafter referred to as "Memorandum") was signed on July 11, 2004.

According to the Memorandum, Hong Kong and the Mainland would each set out its list of accredited higher education institutions and universities and regularly update the lists. Diplomas, including a bachelor's or higher degrees awarded by accredited higher education institutions and universities of one side will be recognised by the other. A summary of the main points of in the Memorandum is as follows:

  1. Students who have received a bachelor's degree from accredited mainland higher education institutions or universities may apply to study in higher education institutions of Hong Kong for a graduate degree or vocational training.
  2. Students who have received a graduate degree from accredited mainland higher education institutions or universities may apply to study for a PhD in a higher education institution of Hong Kong.
  3. Students who have received a bachelor's degree with good grades from accredited Mainland higher education institutions or universities and have successfully completed high-quality papers or research work may apply to study for a PhD in a higher education institution of Hong Kong.
  4. Students who have received a bachelor's degree from accredited Hong Kong higher education institutions or universities may apply to study for a graduate degree or vocational training in institutions of higher education in the Mainland.
  5. Students who have received a graduate degree from accredited Hong Kong higher education institutions or universities may apply to study for a PhD in institutions of higher education in the Mainland.
  6. Students who have received a bachelor's degree with good grades from accredited Hong Kong higher education institutions or universities and successfully completed high-quality papers or research work may apply to study for a PhD in institutions of higher education in the Mainland.
  7. Both sides recognise and respect the autonomy or discretion of higher education institutions and universities of each other to recruit students according to their rules and procedures.

For more detailed information of the Memorandum, please refer to the website of the Ministry of Education:
http://www.moe.gov.cn/publicfiles/business/htmlfiles/moe/moe_2792/index.html