Let's discuss taxation, retirement, and social rights for long-term immigrants in China and Japan. It's crucial information.
Absolutely. Understanding these aspects is vital for anyone planning a long-term stay. So, China and Japan – how do they compare?
In China, the tax system for foreigners can be complex. It's a progressive system, meaning higher earners pay higher rates. Tax residency requires at least 183 days in the country annually. Otherwise, taxes are only on income sourced within China.
So, strategically timing your time abroad could impact your tax liability?
Precisely. In Japan, the system is also progressive. However, residency rules differ. Non-permanent residents (five years or less) pay tax only on income sourced in Japan and income remitted to Japan. Permanent residents are taxed on worldwide income.
Interesting. Let's move to retirement. What are the provisions for long-term immigrants?
In China, employed individuals contribute to a social security system encompassing pension, medical, unemployment, work injury, and maternity insurance. Self-employed individuals can also participate but need to register and contribute independently.
And in Japan?
Japan has a multi-tiered system. The National Pension is mandatory for those aged 20-60. Employees' Pension Insurance is for those employed by companies, with contributions from both employee and employer. If you leave before retirement, you can withdraw a portion of your contributions.
Excellent. What about other social rights – healthcare and education?
In China, long-term residents are generally eligible for public healthcare, though access varies. Education is available, but international schools are expensive. In Japan, there's a universal healthcare system offering affordable access to medical care for residents. Public education is good, but again, international schools are costly.
So, both countries offer pathways to social security, but with different structures and levels of access. China presents more complexities, while Japan offers a more standardized system, particularly in healthcare.
That's a fair assessment. The best choice depends on individual circumstances and preferences.
Thank you for clarifying this. This information is invaluable for anyone considering a long-term move to either country.