- Unions: New regulations in China promote unionization at foreign invested enterprises (FIEs). While previous unionization campaigns targeted Fortune 500 companies, the focus is now moving to small and medium sized FIEs. Measures supporting the establishment of unions include possible counter-measures against non-cooperative companies, such as negative comments to media, lobbying local government authorities to impose sanctions and initiating regulatory-related audits. The regulations also call for funding labor unions from company payrolls even if the company is not unionized.
- New Tax Rules crack down on expatriates receiving China sourced income paid by offshore entities. The individual income tax rules strengthen oversight and documentation requirements for high-income earners particularly with respect to benefits, expenses and tax-exempted income.
- Stock Options: Another area receiving recent attention is stock option awards for PRC Nationals. Currently in order to award stock options, the employer must set up the stock option plan with a Domestic Agent, Asset Manager and Custodian Bank. The plan must also be registered with the State Administration of Foreign Reserves. This area is continuing to evolve with the establishment of new administrative precedents.
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Salary Benchmarking: Supply Chain Executives in Asia