With the development and integration of the Greater Bay Area in China, more mobilisation would be expected in terms of cross-border employment and investment between Hong Kong, Macau, and other mainland cities. However, at the same time, Chinese tax authorities seem to tighten the tax administration of Chinese working in foreign jurisdictions (covering areas outside mainland China) by requiring them to report overseas income and comply with China’s individual income tax law. This group of Chinese employed outside mainland China is referred to as cross-border employees in the paper presented in this talk. The risk of double taxation will inevitably affect the decisions of those who are looking for overseas employment opportunities and others who are currently working abroad. This paper examines the tax consequences of cross-border employment in relation to mainland China in both directions. By comparing the income tax rules applicable to different groups of cross-border employees, the paper will highlight the discriminatory treatment applied to Chinese cross-border employees and propose measures to better facilitate cross-border movement of human resources.

About the speaker: Prof. Jingyi Wang