Beijing Government Issues Circular on Collection of Union Fees

The General Office of People’s Government of Beijing Municipality issued the Circular on the Commencement of the Pilot Work with regard to the Collection of Union Contributions and Preparation Fees by the Beijing Local Tax Bureau (Jingzhengbanhan [2010] No. 34) (Circular).

According to the Circular, starting from July 1, 2010, Beijing Municipality would begin pilot work on the collection of union contributions and preparation fees in the Xuanwu, Fengtai, Changping districts. Beijing employers are required to pay 2% of total payroll on a quarterly basis to the local tax bureau. Payments are due within 15 days of the completion of the quarter and delinquent payments are subject to a penalty of 0.5% per day of the outstanding payment. The union contributions and preparation fees will be paid into the union contributions account of the Beijing Branch of All-China Federation of Trade Union (Beijing ACFTU). For those employers that have already established union contributions accounts, the portion of the union contributions that should be retained by the employer will be directly transferred to the union contributions account after the Beijing ACFTU’s examination and approval.

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