Social Security Collected by Tax Bureau in Shanghai

Social Security Collected by Tax Bureau in Shanghai


In 2018, “Plan for the reform of the state and local tax collection and administration systems” issued by General Office of the China Central Committee and General Office of the State Council has clearly proposed the scheme that the social security will be collected by tax bureau. Now, the contribution of social security for the company and the flexible employment will start to be collected by tax bureau from November 1st, 2020. For more information, please refer to “The notice of social security collected by Tax Bureau” issued on October 30th, 2020.


The scope of contribution for social security could refer to the following chart:


Category Social security
Company Pension insurance, medical insurance (include maternity insurance), occupational injury insurance and unemployment insurance
Flexible Employment (Including self-employed businesses without employees, part-time employees who are not participating in basic pension insurance and basic medical insurance for employees) Basic Pension insurance, basic medical insurance


HRs and financial personnel could still follow the old way to pay the social security, or change to pay via online tax bureau, or APPs on the mobile phone or computers before 15th of each month. The flexible employee should pay the social security to the tax office either on the 11st or 21st of each month.


Will this scheme increase the burden on companies?


The “Interpretation on the notice of social security collected by tax bureau” advocates the “two no principles”, ensuring not to increase the burden of the company.


No change on the current declaration method Information changes, filing claims and other social security activities will still be declared in the current system
No change on rules of the calculation for social security The threshold of contribution for social insurance will be confirmed according to the current regulations
No collect on the overdue fee All local departments of social insurance shall not conduct declaration of overdue fees without instructions


Based on the “two no principle”, the contribution of social security will not be strictly collected immediately, but the compliance is inevitable. HRs and financial personnel need start to pay attention on the compliance of contribution of social insurance. For instance, conduct fee payment on time, accuracy of threshold of contribution. Make sure that the base of contribution in line with the salary amount and the correct personal income tax reported to the tax bureau in the same period.