PwC Hong Kong recently broke the news of The State Administration of Taxation of China’s move to stop double taxing HK and Macao tax resident employees working in China. The Administration has issued Public Notice [2012]No.16 (PN16) regarding the time apportionment treatment which now allows employment income, including bonuses, to be time apportioned on a physical presence basis.
Coming into effect on 1 June 2012, PN16 will further eliminate the problem of double taxation for HK and Macau tax residents working in China. As a result, employees and their employers may revisit their employment and work arrangements as well as their current China and Hong Kong tax filing positions.
Paul Arkwright
Publisher
