Companies should buy social security for foreign employees.

Foreign employees are not required to pay personal income tax for overseas insurance premiums.

From 20110, foreign employees employed in China are required to pay social insurance premiums in China by their employers and themselves.

According to Article 25 of the Regulations for the Implementation of the Individual Income Tax Law, "according to state regulations, the basic old-age insurance premium, basic medical insurance premium, unemployment insurance premium and housing accumulation fund paid by units and individuals shall be deducted from the taxable income of taxpayers." Therefore, the social insurance paid by these employers and individuals can be deducted from the taxable income of individual income tax.

The Company's personal income tax provisions for purchasing overseas insurance for foreign employees are as follows:

1. All overseas insurance premiums paid or undertaken by enterprises for employees working in China shall be deducted from the taxable income of enterprises in the name of paying employees' wages and salaries, and shall be included in employees' wages and salaries to declare and pay personal income tax.

2. Overseas insurance premiums paid or undertaken by enterprises for employees working in China without deducting their taxable income shall, in principle, be included in employees' personal salary income, and personal income tax shall be declared and paid according to regulations. However, according to the relevant laws and regulations of the state, the social security expenses that are really borne by the employer may not be included in the personal taxable income of employees after being approved by the local tax authorities.

3. Overseas insurance premiums paid by employees working in China shall not be deducted from the taxable income of the employees.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.