Yang Yan, director of the Shekou Management and Service Center for Expats, has compiled essential information that foreigners terminating their employment contracts in Shenzhen may require before leaving China.

Employment separation certificate 

Before leaving a company, foreign employees are advised to ask for a separation certificate or work experience letter. This document is likely to be required when applying for a work permit in the future, whether moving to a new company or returning to China.

In accordance with the provisions of the Labor Contract Law, the company is obliged to provide the employee with a separation certificate.

It is advisable to have your employment certificate notarized. This notarized document may be required in the future when applying for employment or permanent residence in another country.

Work permit cancellation certificate

There are two scenarios:

1. If your last day of work coincides with or is very close to the expiry date of your work permit, there is no need to cancel it. This is because the cancellation process must be initiated a few days before you leave.

2. If there is a significant time gap between your resignation and the expiry of your work permit, it is necessary to cancel the work permit. To do this, you must obtain a work permit cancellation certificate from the Bureau of Foreign Experts Affairs. This certificate is essential if you plan to return to China within a short period of time and apply for a domestic work permit transfer.

T visa application

After obtaining work permit cancellation certificate, you can proceed to apply for a passport from the exit and entry department of the Public Security Bureau. Subsequently, you can obtain a 30-day stay visa.

Non-criminal record

Taking Shenzhen as an example, obtaining a non-criminal record typically necessitates the individual’s presence. If you are no longer in China, the information provided by the agency will be more intricate.

Requirements for foreigners seeking a non-criminal record in Shenzhen:

Foreign nationals must have lived in Shenzhen continuously for more than six months.

The following documents are required for personal application on site:

* Original passport

* Temporary residence registration form (Please note that many foreigners neglect updating these forms when renewing their residence permit or changing addresses, resulting in a fragmented residence record, which may prevent non-criminal record applications)

* Application form (to be completed and signed on site)

Housing fund withdrawal

If your company has provided housing fund for you, you can withdraw the remaining balance before leaving.

You can apply for withdrawal either online or offline. It is recommended that you apply offline, as online applications do not offer the option of departure withdrawal and usually take several months to process.

For online applications:

Visit the “粤省事” WeChat miniprogram for the housing fund section.

For offline applications:

Documents required for housing fund withdrawal:

* Original passport

* Original housing fund card (if no other bank card is available)

* Shenzhen housing fund withdrawal personal authorization and commitment letter (to be filled at the bank window site)

Withdrawal of social insurance

Individuals can only apply for social security repatriation if the company has stopped paying social security contributions on their behalf. Normally, companies can stop payments through the operating system on the last day or two of the month. It is therefore important to plan your application accordingly.

You can check the amount by logging into your personal social security account or by visiting the social security office in person. All contributions paid by an individual will be taken into account for the withdrawal.

Offline application at the Social Security Bureau window:

Documents required for social insurance withdrawal in Shenzhen:

* Passport

* Bank card

* Work permit cancellation certificate or separation certificate

* Financial social security card (if available).

* Shenzhen social insurance relationship settlement application form (signed by the insured, such as the unit agent, company seal required if handled by the company)

Online application:

If you have registered with the social security system and your details are correct, you can choose to apply for a departure withdrawal online. The website for this procedure is: https://sipub.sz.gov.cn/hspms/

Handling individual income tax

Individuals are liable for income tax in China. Before leaving China, it is important to check your tax records to ensure that your employer has fully withheld and paid the required income tax on your behalf. Failure to meet your tax obligations may result in late fees, penalties and negative impact on your credit status in China.

It is advisable to seek the assistance of a professional or institution to assess and manage your personal income tax liabilities.

1. If your taxpayer status changes before you leave — for example, if you become a non-resident or vice versa and there is a discrepancy between the tax paid and the tax due — you must visit the tax office before you leave to obtain a tax refund.

2. If you are a resident taxpayer who has used the eight eligible subsidy policies for tax refunds in the following year, you should gather the relevant information before you leave. If you have used the qualified rent subsidy, make sure you collect the rent bill, lease and other necessary documents before you leave to facilitate the personal settlement process from March to June of the following year. Submit these documents to the tax office.

Certificate of personal income tax payment

When you pay income tax in your home country or work in a third country, you may be asked to provide proof of your income and tax payments while working in China. It’s therefore advisable to obtain a tax payment certificate before you leave China.

Methods for obtaining an individual income tax payment certificate in Shenzhen:

1. “个人所得税” app. The tax certificate can only be issued after January 2019.

App path: Home — Common business — Tax records issued

2. Natural person electronic tax official website: https://etax.chinatax.gov.cn/

Tax certificate application path after 2019: Featured application — Tax record issuance.

Tax payment certificate application path before 2019: Featured application — Tax payment certificate issuance.

3. Tax bureau windows

Both methods 1 and 2 require registration with the tax office (foreigners must register at the tax office window or online after applying for a registration code).

Transferring money to a foreign account

Due to foreign exchange regulations, banks usually require your personal income tax certificate, employment contract, work permit and other documents when transferring earned wages and salaries to a foreign bank account. If you have other sources of income, please contact the bank specifically for the information you need.