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IMPACT – MEDIUM

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.

• Implementation time frame: Ongoing. The change was implemented Dec. 2.
• Visas/permits affected: Category A work permits, residence permits.
• Who is affected: Shanghai employers and foreign nationals applying for Category A work permits.
• Impact on processing times: Category A work permit applicants can now obtain both their work and residence permit in seven business days. Previously, work permit processing took 10 business days, and residence permit processing took an additional seven. Under the old system, resident permits could not be submitted until work permits were approved.

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.

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IMPACT – MEDIUM

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.

• Implementation time frame: Dec. 1, 2019.
• Processes affected: 144-hour transit visa exemptions.
• Impact on processing times: Nationals of 53 countries transiting through Chongqing, Xi’an and Ningbo to a third country.
• Business impact: Business activities are permitted on a 144-hour visa free stay.

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:

• Europe (Schengen Area): Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.
• Europe (other): Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Ireland, Macedonia, Monaco, Montenegro, Romania, Russia, Serbia, the United Kingdom and Ukraine.
• Americas: Argentina, Brazil, Canada, Chile, Mexico and the United States.
• Oceania: Australia and New Zealand.
• Asia/Middle East countries: Brunei, Japan, Qatar, Singapore, South Korea and the United Arab Emirates.

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).

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.

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IMPACT – MEDIUM

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.

• Implementation time frame: Ongoing.
• Visas/permits affected: Category A Work Permits, including renewals and deregistration.
• Who is affected: Employers who use the “undertaking” approach when applying for Category A work permits.
• Business impact: The changes may add to the time it takes for employers to calculate the appropriate salary for foreign workers on Class 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:

• Taxable income may be lower than expected because of additional itemized deductions and preferential taxation of bonuses and equity income under the new law.
• The implications of the new tax law may differ depending on whether the foreign national is considered a resident of China. Residents are eligible to apply for refunds at the end of the tax year, thereby changing how taxable income is calculated.
• Foreign employees who simultaneously have positions both in and out of China may not be fully taxed on their income.

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.

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.

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IMPACT – MEDIUM

What is the change? China’s Ministry of Culture and Tourism has suspended independent tourist travel to Taiwan.

• Implementation time frame: Immediate and ongoing. The change took effect Aug. 1.
• Visas/permits affected: Individual entry permits to Taiwan.
• Who is affected: Mainland Chinese residents planning travel to Taiwan.
• Business impact: The business impact is minimal because even before the suspension Mainland Chinese residents were required to obtain business visa endorsements in order to conduct business activities in 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.

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IMPACT – HIGH

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.

• Implementation time frame: The changes took effect Aug. 1.
• Visas/permits affected: Permanent residence, long-term residence permits, residence permits, graduates of internationally renowned universities, internship visas, among others.
• Who is affected: The changes will benefit many foreign nationals, including executives, high-skilled employees working in key industries, foreign nationals working at start-ups, foreign academics and researchers and foreign students and recent graduates.
• Business impact: Officials hope that easing immigration procedures for those listed above will help China meet its labor needs, especially in key sectors including research and innovation and entrepreneurial fields.

Additional information: Officials announced the 12 measures last week, saying:

1. High-skilled foreign nationals who meet the “special needs” of the Chinese government will be eligible to apply for permanent residence at the Exit-Entry Administration Department of Public Security Bureau (“Exit-Entry Bureau”) upon recommendation from the competent authorities. Foreign spouses and minor children may apply together with applicants.
2. Foreign nationals working in China for four consecutive years, and living in the country for at least six months in each of the previous four years, whose annual income is no less than six times above the average wage in the region where they work and who pay an income tax of more than 20 percent of the income standard can apply for permanent residence in China. Foreign spouses and minor children may apply together with applicants.
3. Foreign nationals of Chinese descent who hold a doctoral degree or have worked in key industries in China for at least four consecutive years, and live in China for at least six months out of each year can apply for permanent residence. Foreign spouses and minor children may apply together with applicants.
4. Foreign experts, scholars and high-level executives who are invited by prominent universities or scientific research institutes, and high-level executives with sought-after skills will apply for port visas at the port visa department of the Public Security Bureau. Upon entry, applicants can apply for a multiple-entry visa or residence permit with validity of up to five years at the Exit-Entry Bureau by presenting supporting documents as requested by the authority.
5. Foreign nationals working at start-up companies in key industries will be eligible to apply for residence permits of up to five years at the Exit-Entry Bureau by presenting a work permit, a letter from the company and other supporting documentation. Applicants can also apply for their residence permit using a reference letter from their team leader.
6. Foreign nationals with an outstanding professional track record who meet the “special needs” of the Chinese government can recommend foreign members of the team or research support personnel for long-term visas or residence permits with validity of up to five years.
7. First-time applicants who have obtained Notification of Work Permit (“NWP”) but have no time to leave the country to apply for a work visa will be able to apply for work residence permits at the Exit-Entry Bureau in China. Those who have applied for work residence permits twice consecutively without any violations of law or regulations will be eligible for a five-year work residence permit for the third renewal.
8. Highly skilled foreign nationals working in key domestic institutions in higher education or scientific research institutes or at well-established enterprises can accept part-time employment in the fields of innovation and entrepreneurship with consent from the relevant employers and the Exit-Entry Bureau.
9. Outstanding foreign graduates from Chinese universities who are engaged in innovation and entrepreneurship activities in China will be eligible for residence permits valid for two to five years at the Exit-Entry Bureau by presenting university diplomas, an innovation and entrepreneurship certificate and other requested materials.
10. Foreign students who graduated from internationally renowned universities and come to China to engage in innovation and entrepreneurship activities within two years of graduation are eligible to apply for residence permits valid for up to two years at the Exit-Entry Bureau with evidence of academic records and other requested documentation.
11. Foreign students from overseas universities who are invited to work in China by well-known domestic enterprises can apply for one-year internship visas at the Exit-Entry Bureau by providing an invitation letter and university certificate, as well as other requested documentation. Foreign students who come to China for an internship in accordance with the inter-governmental agreement can apply for a work residence permit if meeting all criteria.
12. Immigration service centers will be established in areas with large foreign populations. These centers will provide services including legal assistance, language and cultural activities, and other services that are related to living, working and studying in China.

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.

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.

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IMPACT – MEDIUM

China has begun issuing machine-readable residence permits and visas.

Key Points:

• The new permits and visas, the first of which were issued last month, are printed on a sticker-like paper and include color photographs.
• Applicants must be prepared to submit photographs taken within the last six months when submitting their application. The photos should be 33 mm by 48 mm, color and printed on photographic paper. Applicants should not wear hats, and the background should be white, with no borders around the image. The photos cannot be modified or blotted.
• With the exception of the photo requirements, application procedures have not changed. Permit and visa uses and validity have not changed either, and foreign nationals who hold previously issued visas and permits can continue to use them until their expiration.

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.

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IMPACT – MEDIUM

What is the change? China’s National Immigration Administration has begun accepting applications for entry and exit documents at any Public Security Bureau in China.

What does the change mean? Applicants may now apply for Chinese passports and permits to travel from mainland China to Hong Kong, Macau or Taiwan at any Public Security Bureau in China. Previously, applicants had to apply for these documents at the office located in the district where their household was registered.

• Implementation time frame: Immediate and ongoing. The change took effect April 1.
• Visas/permits affected: Chinese passports, permits to travel from mainland China to Hong Kong, Macau or Taiwan.
• Who is affected: Anyone in need of the documents listed above.

Additional information: The immigration administration has also launched a new online portal for mainland Chinese citizens in need of entry-exit application services, including scheduling appointments at the Public Security Bureau.

Analysis & Comments: The recent developments are part of China’s efforts to centralize immigration processes and ease travel procedures to Hong Kong, Macau and Taiwan. The changes will save some applicants time because they will no longer have to travel to apply for entry and exit documents in their home district and will have an easier time booking appointments.

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.

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IMPACT – MEDIUM

What is the change? Chinese New Year falls on Feb. 5 this year and offices in China, Singapore and many other Asian countries will close in observance.

What does the change mean? Government and private offices in China and other countries will be closed during the Lunar New Year celebration known as the Spring Festival. Applicants with time-sensitive fillings should plan ahead.

• Implementation time frame: Feb. 4-10.
• Visas/permits affected: All immigration-related services.
• Who is affected: Foreign nationals seeking immigration-related services in China, Taiwan, Singapore and other Asian countries.
• Impact on processing times: The one-week holiday may cause a backlog when services resume.
• Next steps: To avoid delays, employers and foreign employees should submit applications ahead of the break if possible.

Background:  Asian countries celebrating Lunar New Year will welcome the Year of the Pig on Feb. 5. Days on which public offices will close vary from country to country:

• China – Offices will be closed Feb. 4-10, with regular business resuming on Feb. 11.
• Hong Kong – Offices will be closed Feb. 5-7, with regular business resuming on Feb. 8.
• Singapore – Offices will be closed Feb. 5 and 6, with regular business resuming Feb. 7.
• Taiwan – Offices will be closed Feb. 2-10, with regular business resuming on Feb. 11.
• Vietnam – Offices will be closed for the Tet holiday Feb. 2-10, with regular business resuming on Feb. 11.

Chinese consular missions around the world are expected to observe the Lunar New Year and to be closed on Feb. 4 and 5, although each mission will publish individual holiday closures. Consular missions in India, for example, will be closed Feb. 4-8 in observance of Chinese New Year. Employees and employers should consult their local mission regarding holiday closures, as they will vary by location.

Analysis & Comments: Companies are encouraged to file work permit and other applications as early as possible before the holiday period.

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.

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IMPACT – MEDIUM

What is the change? China will soon allow 144 hours of visa-free transit in five additional cities.

What does the change mean? Beginning Jan. 1, travelers from 53 countries who have proof of onward travel will be permitted to visit Chengdu, Kunming, Qingdao, Wuhan and Xiamen for up to 144 hours without obtaining a visa. The 144-hour visa-free policy is currently only available in four regions of China, including areas in and around Beijing and Shanghai.

• Implementation time frame: Jan. 1.
• Who is affected: 144-hour transit visa exemption.
• Impact on processing times: Nationals of 53 countries transiting through Chengdu, Kunming, Qingdao, Wuhan and Xiamen to a third country.
• Business impact: Business activities are permitted on a 144-hour visa free stay.

Background: China allows nationals of 53 countries to transit through any of 18 Chinese cities without first obtaining a visa. In most locations, visa-free transit stays are currently capped at 72 hours. Stays of up to 144 hours are permitted in four locations, with plans to extend 144-hour visa-free transit to five additional cities beginning Jan. 1.

The 53 countries covered by the 144‑hour visa-free policy are as follows:

• Europe (Schengen Area): Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.
• Europe (other): Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Ireland, Macedonia, Monaco, Montenegro, Romania, Russia, Serbia, the United Kingdom and Ukraine.
• Americas: Argentina, Brazil, Canada, Chile, Mexico and the United States.
• Oceania: Australia and New Zealand.
• Asia/Middle East countries: Brunei, Japan, Qatar, Singapore, South Korea and the United Arab Emirates.

Analysis & Comments: The change will double the allowable stay for travelers in transit through Chengdu, Kunming, Qingdao, Wuhan and Xiamen from 72 hours to 144 hours. 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., travel only within select provinces during their stays).

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.

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IMPACT – MEDIUM

What is the change? China’s National Immigration Administration is set to implement a number of measures to improve entry and exit services for foreigners and citizens of the People’s Republic of China.

What does the change mean? The 22 new measures are set to be implemented in phases by the first quarter of 2019. The first phase, implemented in September, introduced new processes by which foreigners in certain situations may receive instant acceptance and approval of applications. In addition, the first phase introduced changes to ease travel and immigration processes for PRC citizens, most notably through removing the requirement to renew immigration documents (i.e., passports, exit-entry permits for Hong Kong, Macao or Taiwan) in the registered household district, or hukou.

• Implementation time frame: Immediate and ongoing. The first phase of changes included five new measures implemented in September. The additional measures are expected by the end of the first quarter of 2019.
• Visas/permits affected: Passports and other immigration documents for PRC citizens and some Chinese visas for foreign nationals.
• Who is affected: PRC citizens and foreign nationals in the situations described below.
• Impact on processing times: The measures will provide faster processing times for foreign nationals in the urgent situations described below as well as faster processing times for PRC citizens.

Background: Authorities announced a number of new process changes to improve entry and exit services and further open up the country’s immigration system. The first phase of changes, implemented in September, include:

• Applications by foreigners will be instantly accepted and approved by the Entry and Exit Administration in the following situations:
  • Foreigners who have lost their passport and need a reissued visa may receive instant acceptance and approval if they have an explanation letter provided by the inviting entity and the plane, rail or boat ticket for exiting China with the confirmed date and seat.
  • Foreign crew members and their accompanying family members who need to urgently apply for a permit to leave the port city and leave the country may receive instant acceptance and approval if they have a guarantee letter from the shipping agency and the transportation ticket for exiting China with the confirmed date and seat.
  • A member of a foreign tour group who urgently needs to apply for a visa separate from the group and leave the country may receive instant acceptance and approval if he or she has an explanation letter from the host travel agency and the transportation ticket for exiting China with the confirmed date and seat.
• PRC citizens may renew immigration documents, including passports and passes to travel to and from Hong Kong, Macao or Taiwan, at any entry and exit office nationwide
• PRC citizens who travel to Hong Kong, Macao or Taiwan with a tour group may complete the endorsement application process at any entry and exit office nationwide.
• Processing times for travel documents for PRC citizens will decrease from 8-13 working days to seven.
• International voyage ships and shipping agencies may complete immigration inspection procedures online.

Analysis & Comments: The new measures look to streamline and improve immigration services and the services offered by entry and exit offices, particularly for PRC citizens. The addition of scenarios in which instant acceptance and approval of urgent applications by foreign nationals is granted may greatly benefit those who are traveling to China for business or tourism but who lose their passport and must be reissued a temporary visa before they exit mainland China.  

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.