China Tax Alert - Issue 23, September 2013
Following the announcement of the Law of the People's Republic of China on the Administration of Exit and Entry of Individuals and the collection of public comments on the exposure draft of the Ordinance on the Administration of Entry and Exit of Foreign Individuals in China ("Exposure Draft") drafted by the Ministry of Foreign Affairs and the Ministry of Public Security, the State Council promulgated the Ordinance on the Administration of Entry and Exit of Foreign Individuals in China on 12 July 2013. The New Ordinance is aimed at standardising the issuance of visas and ensuring effective governance of the short-term and long-term stay of foreign individuals in China. The New Ordinance took effect on 1 September 2013.
The New Ordinance and the various changes with respect to securing working permits for foreigners (including procedural requirements and lead time for document processing) introduced by local exit and entry bureaus across China in recent months will inevitably impact the way companies are required to manage their foreign workforce going forward. Companies that host or hire foreign employees are therefore recommended to familiarise themselves with the New Ordinance and the up-to-date practices for relevant procedures in their respective locations in order to amend their internal guidelines and effectively manage their foreign workforce in China.