Severance of employees when a foreign representative office is closed

Author:YAO Zheng, LI Xinyi
Date:2023.02.27

A foreign-related representative office usually refers to the permanent representative office of a foreign (regional) enterprise, that is, an office established by a foreign enterprise in Chinese mainland to engage in non-profit activities related to the business of the foreign enterprise (hereinafter referred to as "Representative Office"). Setting up a Representative Office provides an opportunity for foreign companies to gain an in-depth understanding of the Chinese market at a lower cost. On this basis, some foreign enterprises choose to invest in setting up subsidiaries after recognizing the potential of the Chinese market to further cultivate the Chinese market; However, some foreign companies have decided to suspend their development of the Chinese market due to factors such as the epidemic. Whatever the purpose, in recent years, many foreign enterprises have chosen to close and deregister their Representative Offices, which inevitably involves the severance of Representative Office employees in the process. This article intends to examine the special employment mode of Representative Offices to provide readers with guidance on common problems encountered in the process of employee severance.

Compliance of AI Medical Software (1): Product Definition and Management Categories

Author:TANG Rong, SHAO Wanlei
Date:2022.12.26

With the Internet and mobile Internet revolution, Artificial Intelligence ("AI") has entered into a phase of rapid development. Medical products are directly related to the health of the public, and in order to ensure that they are safe and effective, regulatory authorities have always been highly cautious when dealing with innovative technologies and products, which makes it necessary to spend a lot of time in administrative procedures before the relevant medical products are put on the market. The purpose of this article is to sort out the definition, nature and management category of AI medical software and clear the way for subsequent administrative approval.

Tax Cost Consideration for Expatriates in China

Author:ZHU Qin、JIANG He
Date:2022.11.17

As the end of the year approaches, many multinational companies are now preparing for a new round of budgets for next year and even the year after.Given that labour costs are one of the most important considerations in annual budgets and that many MNCs have lots of expa-triates.As a general introduction, we would like to address the impact of Chinese Individual Income Tax ("IIT") on expatriates in China in the following areas so that MNCs and expatriates can plan better from a tax perspective.