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IMPACT – HIGH
All travelers entering Shanghai and Chengdu are required to undergo 14 days of concentrated medical observation.
Key Points:
Background: The new medical observation requirement follows similar policies recently implemented in other provinces and cities in China.
Analysis & Comments: The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
Effective March 28, entry is suspended for foreign nationals holding visas or residence permits that were valid up to the suspension.
Analysis & Comments: Employers should anticipate significant disruptions to employee mobility. The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
Several major cities in China are implementing quarantine measures for foreign and Chinese nationals entering China.
Additional information: For Shanghai, the eight countries above have been added to the previous list of countries that include: Austria, Belgium, Denmark, France, Germany, Iran, Italy, Japan, Netherlands, Norway, South Korea, Spain, Sweden, Switzerland, United Kingdom, and United States. For Beijing, foreign nationals under 14 and over 70, pregnant or those with medical conditions can request home quarantine after strict assessment.
Analysis & Comments: Employers should anticipate significant disruptions to employee mobility and availability for affected employees. The response to COVID-19 continues to develop, and Deloitte will provide additional updates as information becomes available.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – MEDIUM
What is the news? The government has clarified current immigration policies for both foreign and Chinese nationals in response to the outbreak of the coronavirus in Hubei Province.
Next steps: Employers should consider the likelihood of delays due to processing or quarantine. Anyone who experiences symptoms such as fever accompanied by acute respiratory infection should immediately seek evaluation and treatment and notify the authorities.
Background: Since the coronavirus was first detected in December, countries have begun issuing travel bans and warnings to prevent the further spread of the virus. China has taken various measures to contain the virus, including closing the Wuhan port of entry in Hubei Province.
Analysis & Comments: With the exception of the Wuhan port of entry, China’s immigration authorities are operating normally at other ports of entry, and there are no changes to visa exemption policies. Foreign nationals can continue to stay and work in China but are advised to check current immigration policies in other countries if planning to travel outside China. The government has stated that immigration authorities may lighten or eliminate penalties for overstaying visas or failing to renew residence permits for foreign nationals affected by the coronavirus. Furthermore, the online system should continue to be used for processing of extensions and residence permit applications. The government has also reminded Chinese Mainland residents planning to travel abroad to verify current entry and exit rules in their country of destination as many countries have recently imposed restrictions on travel from China. Deloitte will continue to monitor the situation and will provide updates when available.
What is the change? Shanghai officials have eased procedures for Category A work permit applicants.
What does the change mean? Category A work permit applicants can now submit both work permit and residence permit applications at the Shanghai Exit-Entry Administration Bureau. Previously, work permits had to be submitted to the Shanghai Foreign Experts Bureau, while residence permit applications were submitted separately to the Exit-Entry Administration Bureau.
Analysis & Comments: The change is welcome news as it will ease Category A work permit application procedures in Shanghai. In some cases, employers may be able to move up start dates because of faster end-to-end processing.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? China will soon allow 144 hours of visa-free transit in three additional cities.
What does the change mean? Beginning Dec 1, 2019, travelers from 53 countries who have proof of onward travel will be permitted to visit Chongqing (a direct-controlled municipality in southwest China), Xi’an (in Shaanxi Province in northwest China) and Ningbo (in Zhejiang province in eastern China) for up to 144 hours without obtaining a visa. The 144-hour visa-free policy is already available in a number of major Chinese cities, including Beijing and Shanghai.
Additional information: China allows nationals of 53 countries to transit through a number of major cities without first obtaining a visa. The cities that already participate in the program are Beijing, Tianjin, Shijiazhuang, Qinhuangdao, Shanghai, Hangzhou, Nanjing, Shenyang, Dalian, Qingdao, Chengdu, Xiamen, Kunming, Wuhan, Guangzhou, Shenzhen, Jieyang.
The 53 countries covered by the visa-free transit policy are:
Analysis & Comments: The change will ease travel procedures for nationals of 53 countries traveling through Chongqing, Xi’an and Ningbo. Travelers should note, however, that while tourism, social visits and business activities are permitted on visa-free transit stays, productive work activities are not. Travelers should also take note of applicable geographic restrictions (e.g., only allowing travel within select provinces during their stays).
What is the change? A new tax law in China has had consequences on taxable income requirements for foreign nationals, especially for employers who use the “undertaking” approach when applying for Category A work permits.
What does the change mean? Employers using this approach should be sure to conduct an individual income tax (IIT) pre-analysis to ensure they are meeting taxable income requirements when hiring foreign nationals on Category A work permits.
Background: The “undertaking” approach allows for faster work permit processing if employers make commitments ahead of time to meet minimum pay and other work permit requirements. Among these requirements is that employees receive a minimum level of taxable income, as established by the local Foreign Experts Bureau (FEB).
The new IIT law has changed how taxable income is calculated in a number of ways. For example:
There may be other ways in which taxable income calculations may change under the new tax law. Applicants that fail to meet taxable income requirements could face immigration consequences, including having work permits downgraded. Failing to meet the requirements may also adversely affect a company’s credit rating, which could result in denials of future work permit applications in Category A.
Analysis & Comments: Employers who are considering the undertaking approach are encouraged to work with Deloitte to conduct a pre-analysis to ensure they are meeting taxable income requirements. Failure to meet taxable income requirements can lead to significant immigration consequences. Employers should note that local FEBs may adjust taxable income minimums in response to the tax reform, but it is difficult to predict when this would happen and time lines would likely vary depending on location.
What is the change? China’s Ministry of Culture and Tourism has suspended independent tourist travel to Taiwan.
Additional information: Mainland Chinese residents are generally required to obtain permission before traveling to Taiwan. Beginning in 2011, residents of 47 mainland cities, including Beijing and Shanghai, were able to apply for individual entry permits to Taiwan. This program has been suspended, however, with authorities citing the current state of relations between Mainland China and Taiwan in their decision to stop individual travel.
Analysis & Comments: While Mainland Chinese residents planning to visit Taiwan as tourists now must go as part of a group, there is no impact on business travel. There has also been no change to travel procedures for Mainland Chinese residents visiting Hong Kong or Macau for tourism or business.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? China has announced 12 new immigration measures aimed at encouraging social and economic development.
What does the change mean? Under the measures, China will provide permanent residence to a broader group of applicants, issue more long-term visas and residence permits, provide immigration incentives to foreign students and recent graduates and establish immigration affairs service centers in areas with high numbers of foreign nationals.
Additional information: Officials announced the 12 measures last week, saying:
Analysis & Comments: The 12 new policies are part of a broader package aimed at promoting social and economic development, and could help employers meet labor needs in key areas. These measures will allow a wider range of foreigners to apply for permanent residency, long-term visas and residence permits in China. For foreign students who are invited to work temporarily in China, internships can now be extended from three months (with current visa limitation) to one year with an internship visa.
China has begun issuing machine-readable residence permits and visas.
Analysis & Comments: Applicants should take note of the change and be prepared to provide photographs meeting the requirements listed above. Failure to do so may lead to delays in their applications.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.