TAIWAN, HONG KONG & MACAU: Smooth Sailing or Bumpy Road Ahead?
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1 TAIWAN, HONG KONG & MACAU: Smooth Sailing or Bumpy Road Ahead?
2 WITH YOU TODAY Insert picture Insert picture Magdalene Tennant Partner (Hong Kong) Kitty Lo Manager (Hong Kong) 2
3 TAIWAN Highlights of Taiwan immigration process Challenges in the movement of PRC nationals Key points to consider: - PRC nationals - Military Service Risks and Penalties for Non-Compliance 3
4 HIGHLIGHTS OF TAIWAN IMMIGRATION PROCESS Nationality Education/professional qualifications Work experience requirements Minimum salary requirement Sponsoring entity s financial requirements 30-day work permit exempt period Work Permit for service performance up to 1 year Work Permit for intra company assignment/direct employment for up to 3 years 4
5 CHALLENGES IN THE MOVEMENT OF PRC NATIONALS EEP (Exit-Entry Permit) application process Multinational Assignment/Service Performance Applicant s eligibility Payment of salary Sponsoring entity s financial requirements Proposed activity plan and schedule Guarantor s qualifications and responsibilities Labour Insurance and NHI (National Health Insurance) Processing time 3 to 4 or more months: Taiwan EEP, China Authorisation Certificate and China Exit Permit for travelling to Taiwan (Tong Xing Zheng) and endorsement at the relevant Public Security Bureau where the employee s household registration (hukou) is located 5
6 KEY POINTS TO CONSIDER PRC NATIONALS Payment of allowances Change in residential address in Taiwan Changes in proposed activity plan and schedule Taxation Overstay 6
7 KEY POINTS TO CONSIDER MILITARY SERVICE All male citizens, born in Taiwan between the ages of 19 on January 1 to 36 on December 31 ( 役齡男子 ), shall be subject to the compulsory 1-year conscription enlistment ( 徵兵入伍 ) Overseas Nationality Overseas Chinese stamp Prohibited from leaving Taiwan if stayed or resided in Taiwan continuously for at least one year Born on or before December 31, 1984 and having resided in Taiwan for 3 times of a minimum period of 4 months each Born on or after January 1, 1985 and having resided in Taiwan for an aggregate of up to 183 days during any period from January 1 to December 31 per year for two years 7
8 RISKS IMPACT ON SPONSOR COMPANY AND PRC NATIONALS Violation of Immigration Status in Taiwan PRC nationals Employee: Engaging in activity without prior permission or inconsistent with the purpose of the EEP Deportation or order to depart within 10 days by the Taiwan National Immigration Agency. May not be eligible to apply for EEP from 1 to 5 years. Sponsor Company in Taiwan: May not be eligible to sponsor EEPs for PRC nationals from 6 months to 5 years 8
9 RISKS IMPACT ON SPONSOR COMPANY AND PRC NATIONALS (CONT D) Employee: Overstay in Taiwan PRC nationals Fine of NTD 2,000 - Overstay for 1-10 days Fine of NTD 4,000 - Overstay for days Fine of NTD 6,000 - Overstay for days Fine of NTD 8,000 - Overstay for days Fine of NTD 10,000 - Overstay for 91 days and above Overstay for less than 6 months - not eligible to apply for EEP for 1 year Overstay for 6 months to less than 1 year - not eligible to apply for EEP for 2 years Overstay for 1 year to less than 3 years - not eligible to apply for EEP from 3 to 5 years Overstay for 3 years or more - not eligible to apply for EEP from 5 to 10 years Sponsor Company in Taiwan: May not be eligible to sponsor EEPs for PRC nationals from 6 months to 5 years 9
10 HONG KONG Recommendations by Audit Commission Assignment types Common misconceptions Hong Kong Visa Options: General Employment Policy (GEP) Immigration Arrangements for Non-local Graduates (IANG) Admission Scheme for Mainland Talents and Professionals (ASMTP) Quality Migrant Admission Scheme (QMAS) Training Visas Current Trends and Challenges Business Travellers Penalties for Non-Compliance 10
11 Audit Commission RECOMMENDATIONS FROM AUDIT COMMISSION Government department which provides independent, professional and quality audit services to the Government and public sector organizations to enhance performance and accountability in Hong Kong Findings? In April 2016, the Audit Commission conducted a review of the processes of the Hong Kong Immigration Department s various work authorisation schemes. The report revealed instances of non-compliance with the current guidelines of the Immigration Department: Genuine local recruitment efforts and greater scrutiny of companies who have not shown commitment to hire local employees Staffing ratio between local and foreign staff Stricter assessment criteria academic qualifications, relevant work experience and remunerations package Authenticity of supporting documents Skills transfer training and development of local workforce 11
12 ASSIGNMENT TYPES Local Hires Short Term Assignment / Project Rotators International Assignment Work Authorisation Required Business Travellers 12
13 Common Misconceptions Hong Kong Work Authorisation is not required: Overseas payroll Overseas employment Non-revenue generating Holds a valid Hong Kong employment visa and / or Hong Kong Identity Card Short term project / training, not working 13
14 VISA OPTIONS General Employment Policy Admission Scheme for Mainland Talents and Professionals Immigration Arrangements for Non-local Graduates Quality Migrant Admission Scheme Training Visa 14
15 CURRENT TRENDS & CHALLENGES Employment Visa Applicants under Admission Scheme for Mainland Talents & Professionals to take up technical or entry level positions and without formal qualifications Special language ability not viewed as a positive attribute Specific information required on unique skills and experience with detailed job description Companies seeking to circumvent Hong Kong s standard for compensation and benefits Query on local/expatriate staff ratio Local recruitment exercise and justification for the employment; including number of candidates have been recruited for similar positions, and the % of local versus nonlocal candidates Training Visa Immigration Department is mindful of incidents where Training Visas was used either to circumvent Employment Visa requirements or to sponsor Chinese or foreign nationals for short term work (rather than to undertake training for special skills and knowledge not readily available in China or the foreign national s home country) Maximum validity period of Training Visas for Mainland Chinese nationals is normally 6 months (12 months for other nationalities) Mainland Chinese nationals are required to demonstrate that they have been employed with their employer for at least 6-12 months in order to be granted a Training Visa 15
16 BUSINESS TRAVELLERS HONG KONG Business visits: A business visit is a short-term trip taken to conduct activities for which work authorisation is not required Permitted Activities: Prohibited Activities Attending meetings Participating in seminars, conferences Conducting sales calls Submitting tenders Signing contracts Engaging in productive work activities (e.g. installation of equipment, software and systems) Preparing tenders Conducting audit activities 16
17 PENALTIES FOR NON-COMPLIANCE Immigration Offence Employer Employee Employing a foreigner without valid work authorisation Fine of up to HKD 350,000 and imprisonment of 3 years Violating the terms and conditions of stay Fine of up to HKD 50,000 and imprisonment of 2 years 17
18 MACAU Work Permit and Blue Card process 45-day rule Obligations (employer and employee) Work Permit and Blue Card Common notable events Penalties for Non-Compliance 18
19 MACAU WORK PERMIT AND BLUE CARD PROCESS STEP STEP STEP INITIATION POSITION ADVERTISEMENT WORK PERMIT SUBMISSION Document & Information Collection Strategy Determination Position advertisement at the Macau Labour Affairs Bureau website for 2 months Work Permit Application submission - Macau Labour Affairs Bureau 7 to 14 days 5 to 7 days 3 to 4 months STEP STEP STEP Employee enters Macau after approval BLUE CARD APPLICATION SUBMISSION In-person attendance for Blue Card Application submission - Macau Immigration Department BLUE CARD BIOMETRICS COLLECTION In-person attendance for Biometrics Collection (Fingerprinting) - Macau Immigration Department BLUE CARD ISSUANCE Issuance of Blue Card Same day 30 to 45 days 45 to 60 days Employee is issued Temporary Authorisation to Stay and is able to commence working in Macau Time Required (Estimated) 19
20 MACAU 45-DAY RULE According to Macau Administrative Regulation No: 17/2004, if an agreement exits between a company with a registered office located outside of Macau and a Macau registered company, where there is a need to use non-macau residents from outside of Macau to provide guidance, technical, quality control or supervisory services to Macau employees, the non-resident can render services in Macau for a maximum period of 45 continuous or discontinuous days in each period of 6 months without having to obtain a Macau work permit The period of 6 months is counted from the date of the lawful entry of the non-resident in Macau. Under this exception, there must be an updated record at the Macau company in which the nonresident will be rendering services in Macau. The record shall be presented upon inspection by the relevant Macau Authorities, e.g.: Labour Affairs Bureau, the Public Security Police Force, Immigration Department, the Customs of Macau, etc. Activities permitted under the 45-day rule Supervise and guide the Macau company s employees (Macau residents and Blue Card holders) to perform work tasks that fall under the categories of guidance, technical, quality control or supervisory services Activities not permitted under the 45-day rule Performing any form of hands-on work 20
21 OBLIGATIONS (EMPLOYER) MACAU WORK PERMIT AND BLUE CARD 21
22 OBLIGATIONS (EMPLOYER) MACAU WORK PERMIT AND BLUE CARD 22
23 OBLIGATIONS (EMPLOYEE) MACAU WORK PERMIT AND BLUE CARD 23
24 COMMON NOTABLE EVENTS LIST 24
25 PENALTIES FOR NON-COMPLIANCE Employer Employee Fine of between MOP 10,000 to MOP 20,000 ($1,225 $2,450 USD) for each unlawful worker Fine of between MOP 5,000 to MOP 10,000. ($615 $1,225 USD) Revocation of existing work permits, and suspension of new applications between 6 months to 2 years May face deportation or ask to leave Macau immediately 25
26 THANK YOU MAGDALENE TENNANT Partner (Hong Kong) Direct: KITTY LO Manager (Hong Kong) Direct: Kitty.Lo@Fragomen.com 26
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