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 Mainland employers. The Mainland employers should enter into employment contracts with the Hong Kong residents employed;
  2. Hong Kong residents who run self-employed 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 Expatriates 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 Wuhan, 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 an assigned. Hong Kong residents who fall within the "self-employed" category should apply for a work permit by themselves.

Authority responsible for the issue of Work Permits :

 
To apply for a work permit, the following documents should be submitted :

  1. the original Application Form for Employment of Taiwan, Hong Kong and Macao Residents, and 2 recent photos;
  2. the original letter of application from the employer for employing Taiwan, Hong Kong and Macao residents;
  3. the copy of the business licence of the employer, or the original and copy of the Approval Certificate for Foreign-funded Enterprises;
  4. the original resume of the employed Taiwan, Hong Kong and Macao residents;
  5. the original and copy of the qualification certificates of the employed Taiwan, Hong Kong and Macao residents;
  6. the original and copy of the Home Visit Permit of the Taiwan, Hong Kong and Macao residents;
  7. the original and copy of the medical health certificate issued or certified by the Hubei Provincial Entry-Exit Inspection and Quarantine Bureau; and
  8. the original and copy of the labour contract signed by both employer and the employed Taiwan, Hong Kong and Macao residents.

For more detailed information, please refer to the website of Wuhan Citizens Home.

Penalty for Failure to Comply with Work Permits Requirements

According to the Employment Regulations, if an 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.

Social Securities and Individual Income Tax

According to the Employment Regulations, Mainland employers should sign labour contracts with their Hong Kong employees and pay social securities in accordance with the Interim Regulations on the Collection and Payment of Social Security Premiums, which include pension, medical insurance, injury on duty insurance, unemployment insurance and maternity insurance, generally known as "five types of insurance". As, detailed implementation rules have not yet been issued, employers have the discretion to decide whether they would enrol their Hong Kong employees in the social security scheme.

For more detailed information, please refer to the website of Wuhan Municipal Human Resources and Social Security Bureau.

Individual Income Tax (IIT) on salaries

Wages and salaries earned by Hong Kong resident from the Mainland should be subject to IIT in accordance with the PRC IIT Law, the Detailed Rules for the Implementation of the IIT Law of the PRC and relevant regulations. Hong Kong residents, 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 IIT on the income derived inside and outside the Mainland in accordance with the prevailing tax regulations. For more detailed information, please refer to the website of the State Administration of Taxation.

According to the Arrangement between the Mainland 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 "Mainland - Hong Kong Tax Arrangement"), provided that for Hong Kong residents who are not employed by a Mainland company; whose total period of stay in the Mainland do not exceed 183 days within any 12-month period; and whose salaries are not borne or paid by any company or permanent establishment in the Mainland, their salaries should not be subject to IIT in the Mainland.

If the above-mentioned criteria are not met, wages and salaries earned by Hong Kong residents shall firstly be distinguished as domestic- and foreign-sourced income:

Then the IIT liability shall be determined based on the period of residence in the Mainland (please refer to the following table):

Period of residence in the Mainland Mainland Payment Offshore payment Formula (IIT Payable)
Mainland-sourced income and paid in Mainland Foreign-sourced income and paid in Mainland Mainland-sourced income and paid outside Mainland Foreign-sourced income and paid outside Mainland

Not more than 90/183 days under the relevant DTA2

Taxable Exempt; senior executives subject to IIT pursuant to the Directors' Fee Article of the relevant DTA3 Exempt Exempt (Total monthly salary paid inside and outside Mainland x IIT rate - quick deduction) x (Monthly salary paid inside Mainland / Total monthly salary) x (No. of days in the Mainland in the month / No. of days in the month)

More than 90/183 days under the DTA but less than 1 year

Taxable Exempt; senior executives subject to IIT pursuant to the Directors' Fee Article of the DTA4 Taxable Exempt (Total monthly salary paid inside and outside Mainland x IIT rate - quick deduction) x (No. of days in Mainland in the month / No. of days in the month)

1 year but less than 5 years

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

Over 5 years

Taxable Taxable Taxable Taxable Total monthly salary paid inside and outside Mainland x IIT rate - quick deduction)

1Regions / Countries outside the Mainland include Hong Kong, Macao and Taiwan regions and foreign countries.

2According to the "Mainland - Hong Kong Tax Arrangement", provided that the Hong Kong residents are employed and their total period of stay in the Mainland exceeds 90 days within a calendar year, then their salaries should be subject to the Individual Income Tax Law in the Mainland. If other conditions are met, the periods of 90 days should be extended to 183 days.

3Formula : (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).

4Formula : (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)].

If Hong Kong people directly employed by Mainland employers, their salaries will be paid by the employers. Hong Kong people's salaries earned in the Mainland are subject to IIT.

For IIT on wages and salaries, the respective progressive tax rate is applicable. IIT on wages and salaries earned by Hong Kong residents are withheld and paid by the employer after a monthly standard deduction. In addition, some non-cash benefits or allowances reasonably received by Hong Kong residents on a reimbursement basis may be exempted from IIT under certain conditions. Such tax-exempt items include housing allowance, meal allowance, laundry expenses, relocation expenses for posting in and out of the Mainland, 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 residents 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 IIT.

For more information on IIT, please refer to the website of the Wuhan Municipal Local Taxation Bureau or scan the QR code of the WeChat Public Platform of Wuhan Local Taxation.

For more information about the Mainland - Hong Kong Tax Arrangement, please visit the website of the Hong Kong Inland Revenue Department, or the website of the State Administration of Taxation.

 

Education

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

Pre-school Education

Children of Hong Kong residents may choose to attend a local kindergarten 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 enrol their children in a local kindergarten, they may contact the kindergarten directly. Whether or not the children will be accepted would be subject to the discretion / decision of individual kindergarten. If Hong Kong residents opt to send their children to international schools, the application should be made to individual international school in accordance with their requirements. The schools will have sole discretion on whether or not to accept such application. Generally the period of enrolment is from June to August each year, Hong Kong residents may enquire and enrol their children in the kindergarten before this period.

For more information, please refer to the websites of the Ministry of Education, Wuhan Education Bureau and Wuhan Education Information. (Chinese version only.)

Primary and Secondary Education

Hong Kong residents may choose to attend a local primary or secondary school in Wuhan (if one has bought an apartment within a school district, his / her children may, in principle, attend one of the schools within that district), or an international school. Parents or guardian of Hong Kong students should familiarize themselves with relevant education systems, admission requirements, application period and other detailed information beforehand. Generally, the application and admission procedures are as follows :

  1. parents or guardians of Hong Kong students in Wuhan should submit a written application to the school of their choice;
  2. the school would assess the supporting documents of Hong Kong residents, such as identity card and residence permit, and issue an Acceptance Letter;
  3. parents or guardians of Hong Kong students should seek the agreement of the relevant district education bureau and have the authority stamp on the school's Acceptance Letter;
  4. parents or guardians of Hong Kong students should carry the relevant identity documents (Home Visit Permit or residence permit), the stamped Acceptance Letter, etc. back to the school for admission procedures of their children.

Please note that the drawing up of all school districts is usually carried out centrally by the Wuhan Education Bureau in May every year. The schools will decide the number of students to be admitted based on local regulations on the size of classes and the actual circumstances of students. Hong Kong residents should check with the school before May each year and submit the application to the school well in advance.

If Hong Kong residents choose to send their children to international schools, the 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 an applicant. The required supporting documents possibly include the past transcripts and the identity card of the students and their guardians. For other specific requirements, please refer to the details announced by the school concerned. After admission, the relevant schools should report their students' information to the education authority concerned for record.

For more information, please refer to the website of Wuhan Education Bureau, or call : (8627) 6560 8452, (8627) 8561 7584.

Tertiary Education

Entrance Examination

Hong Kong residents who wish to apply for higher institutions in the Mainland can sit for an entrance examination organised by the colleges and universities that accept overseas Chinese, Hong Kong, Macao, and Taiwan students. Some of the main 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 above-mentioned courses must provide supporting documents certified by the relevant schools;
  2. students must meet specific physical requirements set by individual universities or courses (if applicable); and
  3. students should hold a valid Hong Kong Identity Card and Home Visit Permit.

As for the examination content and requirement, please refer to the Syllabus of joint entrance exam held by mainland colleges and universities to recruit overseas Chinese, Hong Kong, Macao and Taiwan students formulated by the Ministry of Education.

For more information, please refer to the website of the Hong Kong Examinations and Assessment Authority; or Mainland College Enrollment Information for Hong Kong, Macao and Taiwan Students (Chinese version only).

Admission without Entrance Examination

According to the notice issued by the Ministry of Education with respect to the admission of Hong Kong students without sitting for the entrance examinations by higher institutions of the Mainland during the year of 2012 (Jiao Gang Ao Tai Han [2011] No. 72), from 2012 onwards, a number of Wuhan universities and institutions, such as Wuhan University, Central China Normal University, Zhongnan University of Economics and Law and Hubei University of Chinese Medicine, may admit Hong Kong students who meet certain requirements / qualifications without the need to sit for the entrance examinations. Hong Kong students who have sat for the Hong Kong Diploma of Secondary Education Examination can apply. The admission requirements may vary and prospective students can refer to admission brochures of individual universities or institutions.

For more information, please refer to the website of the Hong Kong Education Bureau; or Wuhan Education Bureau.

List of International Schools and Contact Information

The information of some international schools in Wuhan approved by the Ministry of Education listed below should be used as reference only. WHETO makes no guarantees as to the accuracy, completeness, content, and timelines of the information contained herein, nor will it be liable for any damages or legal liabilities which may arise from the use of the information. Please confirm the accuracy of all information, and seek professional advice as necessary. Information listed below is not intended to be an advertisement or solicitation of business. WHETO does not endorse any of the products, services or information referenced therein.

Name Address Telephone Website

Maple Leaf International School - Wuhan

No.330, Minzu Avenue, East Lake Hi-tech Development Zone, Wuhan (8627) 8192 5777 http://wuhan.mapleleaf.cn/

Wuhan Yangtze International School

International Education Park, Boxue Road, Wuhan Economic and Technological Development Zone (8627) 8423 8713 http://wyischina.com

Ecole Francaise International de Wuhan

International Education Park, Boxue Road, Wuhan Economic and Technological Development Zone (86) 182 0714 3319 http://efiw.org

Mutual Recognition of Academic Degrees in Higher Education

Hong Kong and the Mainland have reached an understanding on mutual recognition of higher education credentials and signed a Memorandum of understanding between the Mainland and Hong Kong on Mutual Recognition of Academic Degrees in Higher Education (hereinafter referred to as "Memorandum") on July 11, 2004. According to the Memorandum, Hong Kong and the Mainland would determine a list of accredited colleges and universities and regularly update the list. Bachelor or higher degree certificates awarded by accredited colleges and universities of one party will be recognized by the other. Main points in the Memorandum include:

Students who have received a bachelor degree from accredited Mainland colleges and universities may apply to study in higher education institutions of Hong Kong:

Students who have received a bachelor degree from accredited Hong Kong colleges and universities may apply to study in higher education institutions in the Mainland:

In addition, both sides recognize and respect the autonomy or discretion of colleges and universities in respect of student admission according to their rules and procedures.

For more information, please refer to the website of the Ministry of Education.