China

ORACLE DATA SHEET

COUNTRY SPECIFIC FEATURES As of Release 12.1.3. Generated on January 27, 2012

Oracle E-Business Suite helps organizations compete globally while they manage their businesses locally. Because it's designed for global organizations doing business worldwide, new features and upgrades for STANDARDIZE ON A SINGLE GLOBAL SYSTEM: With Oracle E-Business Suite to manage your business systems at a global level, you can: •

•

•

Provide corporate consistency and global visibility with centralized business functions Extend core business systems with a standards-based business platform Accommodate global data standards with a native global platform

Oracle E-Business Suite are delivered simultaneously to all markets, in a single code set with the standard products, allowing countries to benefit immediately. This document, China Country Specific Features, describes the capabilities provided by Oracle E-Business Suite to address local business and regulatory requirements in China. How Oracle delivers Globalization Oracle E-Business Suite addresses geographic requirements through a comprehensive global solution set that is comprised comprised of the following components: (See Figure 1 below.) •

Global Technology Platform provides Platform provides consistent technology support for global requirements across all applications.

•

Globalization Capabilities are Capabilities are delivered through rules-based engines that support globally diverse requirements in areas such as accounting, payments, payroll, taxes, and others.

•

Localizations enhance the globalization capabilities by providing support for country specific legislative and business requirements. The following localization delivery methods exist:

MEET THE CHALLENGES OF •

Product Localizations: Delivered in product, by Development organization

•

Add-on Localizations: Delivered via My Oracle Support, by Development and

GLOBALIZATION WITH ORACLE EBUSINESS SUITE

Regional Localization centers.

Only Oracle's global software platform enables the rapid deployment of costefficient and compliant business processes

•

Partner Localizations: Delivered by Oracle's partners

Please note that not all these delivery methods are applicable to every country.

that lead to success in your business.

1

ORACLE DATA SHEET

Configurable Global Foundation Supports Deep Localization: Localization: In Oracle E-Business Suite, these capabilities can be adapted to local business practices: •

Chart of accounts

•

Accounting rules

•

Financial reporting

•

Payment formats

•

Tax and withholding calculations

•

Tax reporting

•

Orac Or acle le’s Globalization Solution

Theimage image cannot nnot be d disp isplay layed. Your computer may nothave have enough memory to to open theimage, image,or the image may may have been corr corrupt upt still appears, you may have to delete the image and then insert it again.

The imag m age cannotbe displ s played. a yed. Your Your compute uterr may may nothave enough memory emory to to open th the e image, or the the image may may have been corrupt rrupt the red x still appears, you may have to delete the image and then insert it again.

Inventory valuation

•

Payroll

•

Workforce administration

•

Data privacy

•

Corporate governance

•

Local business practices

ed. Restart a rt yourcomputer, e r, and then open the file again. If

Localizations Localizations

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.


Product Product Localizations Localizations


Add-on Add-on Localizations Localizations

Partner Partner Localizations Localizations

Applications Financial Management

Asset valuation and depreciation methods

•

ed. Restart a rtyour computer, puter,and then h en open the h e file l e again. ain. If the h e red x

Human Capital Management

Supply Chain Management

Global GlobalArchitecture Architecture


The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you …

Accounting Accounting Engine Engine

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your compu …

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart a rt your comput …

Bank Bank Model Model

Ledgers Ledgers

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your comput …

Legal MDM Entities

Global Global Platform Platform



The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then op…

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your comput …

Payments Payments Engine Engine

Tax Tax Engine Engine


Common Information Model The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrup corrupted. Restart yo

Data Data Formats Formats …

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then

Languages Languages …

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer,

Reporting Reporting …


SOA SOA


BI AIA

…

…

Figure 1: Oracle's Globalization Infrastructure Infrastructure

Oracle E-Business Suite has been successfully implemented by companies in more than 150 countries worldwide. Oracle delivers specific localizations for the following countries:

Americas Argentina

Europe, Mi Middle Ea East & Af A frica Austria Netherlands

Asia Pa Pacific Australia

Brazil

Belgium

Norway

China

Canada

Bulgaria

Poland

Hong Kong

Oracle E-Business Suite lets you

Chile Colombia

Croatia Czech Republic

Portugal Romania

India Japan

operate wherever your customers,

Mexico

Denmark

Russia

Korea

suppliers, or employees are

Peru

Egypt

Saudi Arabia

Malaysia

located — all on one native, global

Puerto Rico

Finland

Slovakia

New Zealand

USA

France

South Africa

Philippines

Venezuela

Germany Greece

Spain Sweden

Singapore Taiwan

Hungary

Switzerland

Thailand

Ireland Israel Italy

Turkey UAE Ukraine

Kazakhstan

United Kingdom

Used in more than 150 countries,

platform.

Kuwait

2

ORACLE DATA SHEET

How to read this Document GLOBAL SOLUTIONS FROM ORACLE: With successful implementations of Oracle E-Business Suite around the world, only Oracle offers the solutions that organizations need to adapt to local conditions while still managing globally. Country specific capabilities for deep localization, business processes that can be adopted and used worldwide and centralized systems for managing your business on a worldwide scale make Oracle E-Business Suite the right global software platform to help your business compete and thrive in a global economy.

This document starts with a high level summary of the requirements supported for China, organized by product family and functional category. The document then provides a detailed description of the requirements and the features available in E-Business Suite to support these requirements. Overview The following tables highlight the functional categories for which Oracle E-Business Suite offers country specific features in China: Statutory Accounting - Fiscal Book, Transaction Tax, Human Resources, Payroll. Functional Categories for Financials Statut Statutory ory Account Accounting ing - Fiscal Fiscal Book Book Transaction Transaction Tax Functional Categories for Human Capital Management Human Resources Resources Payroll

Oracle

Partner

√ √ Oracle

Partner

√ √

China Requirement Maps The following tables list the key requirements supported in Oracle E-Business Suite for China . The requirements are categorized into functional areas as shown below. Financials Statut Sta tutory ory Acc Accoun ountin ting g - Fis Fiscal cal Boo Book k Fiscal Fiscal Filing Filing and Audit Audit Report Reports/F s/File iless

• •

CNAO CNAO V2 for for Ente Enterp rpri rise se (inc (inclu ludi ding ng Stat Statee-Ow Owned ned Enter Enterpr pris isee and Joint Joint Venture Venture)) CNAO CNAO V2 for for Publ Public ic Secto Sectorr & Gove Govern rnmen mentt Mini Minist stry ry

•

Cash Cash Flow Flow Statem Statement ent

Transacti Tran saction on Tax VAT

•

Golden Golden Tax

Human Capital Management Human Huma n Reso Resource urcess Organization Organization attributes attributes

•

Capt Captur uree & repo report rt lega legall Empl Employ oyer er detai details ls

Person Person & Employ Employmen mentt details details

•

Reco Record rd detai details ls of Empl Employ oyee eess and and their their Empl Employ oymen mentt

Payroll Payrol Payrolll data data captur capturee

•

Legal requirment to capture and maintain details of Employees' Employees' renumeration. renumeration. 3

ORACLE DATA SHEET

Payroll Payroll processing processing

•

Maintain & Process Payroll to meet country's legal requirements

Payrol Payrolll report reporting ing and interf interfaces aces

•

Legislative Legislative Reporting Reporting

4

ORACLE DATA SHEET

Chin Ch ina a Re Requ quir irem emen entt Ma Maps ps - De Deta tail ils s This section provides a detailed description of each requirement and the corresponding features.

1. CNAO V2 for Enterprise (including State-Owned Enterprise and Joint Venture)

Requirement Name Product Family

Description

Functional Category Requirement Type

CNAO V2 for Enterprise (including State-Owned Enterprise and Joint Venture) Financials On June 30th, 2010, China National Audit Office (CNAO) issued GB/T 24589-2010 China Financial Information Technology-Data Interface of Accounting Software standards for Enterprise (GB/T 24589.1-2010) .This legislative requirement, referred as CNAO V2 for Enterprise replaced previous CNAO V1 (GB/T 19581-2004 China Information Technology-Data Interface of Accounting Software, referred to as CNAO V1.) and took effect on Dec 1st, 2010 in the whole country. CNAO V2 for Enterprise (GB/T 24589.1-2010) aims to enhance further data interchange and ensure completeness and correctness of accounting data. All Accounting/ Financial software in China must comply with this new interface standard. When CNAO audits the financial statements and accounting data periodically, all state-owned enterprises including joint ventures in China are required to export the financial statements and accounting accounting data into xml files. The financial data covers FMS (GL, AP, AR and Fixed Assets) and HCM (Payroll). Statutory Accounting - Fiscal Book - Fiscal Filing and Audit Reports/Files Legal Requirement

Feature Name

Feature Description

Delivery Type

CNAO V2 Solution for Enterprise

CNAO V2 Solution for Enterprise on EBS R12.1.3 has been certified and approved by CNAO successfully. CNAO V2 Solution for Enterprise has added the following features since its last release. 1.Cash 1.Cash Flow Statement: With CNAO V2 Solution for Enterprise, at login the user can run the following reports and programs: 1)Cash 1)Cash Flow Statement – Generation program 2)Cash 2)Cash Flow Statement – Cash Flow Statement Detail Report 3)Cash 3)Cash Flow Statement Program - Intercompany Transaction Validation 4)Cash 4)Cash Flow Statement Program - Data Collection

Product Localization

2.Data 2.Data Export for Enterprise: In CNAO V2 Solution for Enterprise, Data Export for Enterprise is composed of the following five programs which export the corresponding financial statements and accounting data respectively: 1)China 1)China General Ledger Data Export (Enterprise) 2)China 2)China Receivables and Payables Data Export (Enterprise) 3)China 3)China Shared Information Data Export (Enterprise) 4)China 4)China Fixed Assets Data Export (Enterprise) 5)China 5)China Payroll Data Export (Enterprise) The following patch is required which is available on the Update Center: For 12.1 Customers: 10352825. If you have implemented Oracle Payroll please download the following patch from the Update Center to acquire full capability of the solution to include payroll part: For 12.1 Customers: 10365966.

2. CNAO V2 for Public Sector & Government Ministry


Description

CNAO V2 for Public Sector & Government Ministry Financials On June 30th, 2010, China National Audit Office (CNAO) issued GB/T 24589-2010 China Financial Information Technology-Data Interface of Accounting Software standards for Public Sector & Government Ministry (GB/T 24589.2-2010) .This legislative requirement, referred as CNAO V2 for Public Sector & Government Ministry replaced previous CNAO V1 (GB/T 195812004 China Information Technology-Data Interface of Accounting Software, referred to as CNAO V1.) and took effect on Dec 1st, 2010 in the whole country. CNAO V2 for Public Sector & Government Ministry (GB/T 24589.2-2010) aims to enhance further data interchange and ensure completeness and correctness of accounting data. All Accounting/ Financial software in China must comply with this new interface standard. When CNAO audits the financial statements and accounting data periodically, all Non-profit Government agencies (public sector and Government Ministry) in China are required to export the financial statements and 5

ORACLE DATA SHEET

accounting data into xml files. The financial data covers FMS (GL and Fixed Assets) and HCM (Payroll).


Statutory Accounting - Fiscal Book - Fiscal Filing and Audit Reports/Files Legal Requirement

Feature Name

Feature Description

Delivery Type

CNAO V2 Solution for Public Sector & Government Ministry

CNAO V2 Solution for Public Sector & Government Ministry on EBS R12.1.3 has been certified and approved by CNAO successfully. CNAO V2 Solution for Public Sector& Government Ministry has added the following features since its last release. Data Export: In CNAO V2 Solution for Public Sector& Government Ministry, Data Export is composed of the following five programs which export the corresponding financial statements and accounting data respectively: 1)China 1)China General Ledger Data Export (Public Sector & Government Ministry) 2)China 2)China Shared Information Data Export (Public Sector & Government Ministry) 3)China 3)China Fixed Assets Data Export (Public Sector & Government Ministry) 4)China 4)China Payroll Data Export(Public Sector & Government Ministry)


The following patch is required which is available on the Update Center: For 12.1 Customers: 10352825. If you have implemented Oracle Payroll please download the following patch from the Update Center to acquire full capability of the solution to include payroll part: For 12.1 Customers: 10365966.

3. Cash Flow Statement

Requirement Name Product Family Description Functional Category Requirement Type

Cash Flow Statement Financials The cash flow statement is the important financial report required by the Ministry of Finance, China. Cash Flow Statement contains cash inflow and cash outflow information for a specific period so that the audience of the report can know the cash flow of the company and do cash forecasting based on it. Statutory Accounting - Fiscal Book - Fiscal Filing and Audit Reports/Files Legal Requirement

Feature Name

Feature Description

Delivery Type

Cash Cash Flow Flow Stat Statem emen entt

The The cash cash flow flow stat statem emen entt pro provi vide des s the the foll follow owin ing g info inform rmat atio ion n for for a specific period: 1) Financial status of the enterprise 2) Influence of operating activities, investing activities and financing activities on cash and cash equivalents 3) Increase in cash and cash equivalents The cash flow statement includes two parts: the main statement and the supplemental statement. The main statement includes information about the cash inflow and outflow generated by the operating activities, investing activities and financing activities. In the supplementary statement, you define the account assignments for the corresponding lines and the formulas to calculate the values in the rows and columns. There is a seeded XML Publisher template for the cash flow statement, which you can customize according to your requirements.


4. Golden Tax

Requirement Name Product Family Description

Golden Tax Financials Golden Tax is one of the Golden Projects initiated by the Chinese government. The Golden Tax project refers to an integrated nationwide value-added tax (VAT) monitoring system and was launched in a bid to establish a national computerized taxation network. Under this Golden Tax project, all businesses operating in Mainland China are required to use a government certified 6

ORACLE DATA SHEET

tax software referred to as the Golden Tax software for generating VAT invoices, VAT calculation, and statutory tax reporting. Chinese government policy requires all businesses to issue all VAT invoices through this Golden Tax system. The current version is V6.15.


Transaction Tax - VAT - Tax Determination Rules Legal Requirement

Feature Name

Feature Description

Delivery Type

Gold Golden en Tax Tax Ada Adapt ptor or

In Main Mainla land nd Chin China a itit is is man manda dato tory ry to use use gov gover ernm nmen entt aut autho hori rize zed d software, called Aisino Golden Tax system, for generating VAT invoices and statutory tax reporting. Golden Tax Adaptor provides seamless integration between Oracle Receivables and the interface of Aisino Golden Tax software and streamlines the process of creating VAT invoices against the Receivables documents to make sure data consistency between Oracle Receivables and the Golden Tax software. The current Golden Tax Adaptor based on EBS R12.1.3 supports integration with Aisino Golden Tax system latest version 6.15. 1.Supports 1.Supports Receivables Invoices, Debit memos and credit memos. 2.Invoice 2.Invoice splitting into multiple VAT invoices as per the VAT limits. 3.Consolidate 3.Consolidate invoices. 4.Supports 4.Supports sales list invoices. 5.Users 5.Users can set up transfer rules that are specific to their needs. 6.Workbench 6.Workbench to centrally manage the data. 7.Automated 7.Automated status control of interface invoices. 8.Auditing 8.Auditing and reconciliation of data between Golden Tax. 9.Tracking 9.Tracking VAT invoice from the Receivables Invoice UI. 10.Basic 10.Basic support to extract Item and Customer master data to the flat files in formats specified by the Aisino Golden Tax System. 11.Periodic 11.Periodic purging of obsolete data to optimize data storage requirements.


5. Capture & report legal Employer details


Capture & report legal Employer details Human Capital Management Organizations in China need to capture organization details and employer registration information so they can meet China-specific legislative legislative requirements when processing HR and Payroll transactions and statutory reports. Human Resources - Organization attributes Legal Requirement

Feature Name

Feature Description

Delivery Type

Corp Corpor orat ate e Inf Infor orma mati tion on

Corp Corpor orat ate e inf infor orma mati tion on incl includ udes es the the com compa pany ny name name that that appe appear ars s on on your enterprise's business license, the URL of your website, the organization code issued by the National Standard Bureau of China, the business category of your enterprise and the name and National Identity Card number of the individual who represents your organization. With With this this feat featur ure, e, you you can can ent enter er your your empl employ oyer er's 's taxtax-re regi gist stra rati tion on number and business license number. The business license number is typically the key identifier of the employer. You can also enter the public housing fund registration authority and number, the pension insurance registration authority and number, the medical insurance registration authority and number, the injury insurance registration authority and number, the maternity insurance registration authority and number, and the unemployment insurance registration authority and number, if required. Finally, you can enter the Enterprise Annuity registration number and authority, if the employer has selected a third party or set up a trustee to manage the Enterprise Annuity fund.


Empl Employ oyer er Info Inform rmat atio ion n

6. Record details of Employees and their Employment

7


ORACLE DATA SHEET


Record details of Employees and their Employment Human Capital Management Organizations in China need to record HR data in line with Chinese legislative requirements and general business practices. Human Resources - Person & Employment details Legal Requirement

Feature Name

Feature Description

Delivery Type

Addr Addres ess s Detai etaills

Addre ddres ss det detail ails are are avail vailab ablle in the Chin hina-s a-spec pecific ific form format at.. With this his feature, country, province/city/SAR province/city/SAR (Special Administration Region), postal code, address information including street name, building name/number, floor number, room number, city/region, district/county/city, district/county/city, town or village, etc. can be captured. With With this this feat featur ure, e, Chin Chinaa-sp spec ecif ific ic info inform rmat atio ion n tha thatt can can be adde added d to to an an assignment includes the employer of the employee, the tax area to which your employee must submit income tax r eturns, the contribution area that must receive your employee's payments for social insurance and the Public Housing Fund, the location at which the employee will be paid and the special tax exemption category if the employee is eligible for a special tax exemption. Employees who are Seamen, Chinese persons working overseas or Chinese persons working in Taiwan, Hong Kong or Macao are all eligible for the normal tax exemption amount plus the additional deduction for expenses. With With this this feat featur ure, e, ban bank k acc accou ount nt deta detail ils s of of emp emplo loye yees es can can be be captured. With ith thi this fea feature ture,, in addi ddition tion to the the stand tandar ard d cont ontract ract det detail ails, the the following information can be captured with the legislation code for China: contract sign-off date, probation period length, constructive probation end date, actual probation end date, notice period and a competitive clause. With this featu feature, re, the the depart departure ure date, date, purpose purpose of travel travel,, destin destination ation country, visa number, designation unit name, group or team name, source of funding, approving unit, date of approval, approval file number, projected return date, actual return date, exception reason and role in the team can be captured. You can enter foreigner residence permit card information including the card number, card type, date of issue, authority of issue and expiration date. With With this this feat featur ure, e, the the tec techn hnic ical al hire hire date date and and wor worki king ng life life star startt dat date e can be captured. This should be used if the employee previously worked for your organization. The technical hire date is when your employee rejoined service, while the working life start date is when your employee first began working for your enterprise. With ith thi this s fea featu ture re,, the the classi assifi fica cati tio on, pass pass numb umber, er, pa pass type type,, da date of issue, authority of issue and date of expiry can be stored. This is used if the employee is a resident of Hong Kong, Macao, or Taiwan and wishes to visit mainland China. Alternatively, this can be used if the employee is a resident of mainland China and wishes to visit Hong Kong, Macao, or Taiwan. With With this this feat featur ure, e, the the cate catego gory ry,, numb number er,, coun countr try y of issu issue, e, plac place e of issue, date of issue and date of expiry can be tracked. A person's Chinese name, Han Yu Pin Yin name and his or hers previous name can be captured. Acco Accord rdin ing g to to Chi Chine nese se Arch Archiv ivin ing g Law, Law, the the stor storag age e loc locat atio ion n of of an employee's files must be captured. This feature allows you to capture the file number, archive format, transfer in date, source unit, transfer out date, target unit and store location of the original copy and a second copy. A pers person ons' s' huko hukou u type type and and loca locati tion on,, race race,, Soci Social al Secu Securi rity ty IC Numb Number er and highest education level can be captured. With With thi this s feat featur ure, e, the the per perso sona nall iden identi tity ty and and per perso sona nall char charac acte terr can can be tracked. The National Standard Bureau of China specifies the values in both fields. This information is usually applicable to stateowned units or government departments. The legal retirement age is partially determined by Personal Identity. Use the Personal Character field to describe the backgrounds of your employees before they joined your enterprise. The The part party y type type,, part party y stat status us,, firs firstt and and seco second nd intr introd oduc ucer ers, s, plac place e of


Assi Assign gnme ment nt Deta Detail ils s

Bank Bank Acco Accoun untt Deta Detail ils s Con Contra tract Deta Detail ils s

Foreign Foreign Travel Travel Informatio Information n

Foreigner Residence Permit Card Information Othe Otherr Emp Emplo loye yee e Dat Data a

Pass Pass Info Inform rma atio tion

Pass Passpo port rt Info Inform rmat atio ion n Person Name Pers Person onal al File File Deta Detail ils s

Pers Person onal al Info Inform rmat atio ion n Pers Person onal alit ity y Info Inform rmat atio ion n

Poli Politi tica call Info Inform rmat atio ion n

8


Product Localization Product Localization





Product Localization Product Localization Product Localization


Prod Produc uctt Loca Locali liza zati tion on

ORACLE DATA SHEET

Feature Name

Previous Military Service Information

Rewards Rewards and and Punishm Punishments ents

Tech Techni nica call Post Post Det Detai ails ls

Visa Visa Inf Informa ormattion ion Work Work Permi Permitt Infor Informat mation ion

Feature Description

Delivery Type

joining, unit of joining, joining, date of joining, joining, formal membership membership date, date of exception, type of exception and reason of exception can be tracked. This includes the place of joining, date of joining, approval date of leaving, approval unit for leaving, last position, last rank, last level, last professional title level, last salary grade and reserve official registration. With this featu feature, re, you you can can track track the the type, type, name, name, reason, reason, grantin granting g date, granting unit, cancellation situation and comments of a reward or punishment. With With thi this s feat featur ure, e, the the tec techn hnic ical al tit title le,, leve level, l, way way to to obta obtain in tit title le,, gran granti ting ng authority, granting date and expiry date can be captured. The Ministry Ministry of Human Resources and Social Security for China recognizes the supplied values in the Technical Title field. The The vis visa numb number er,, visa isa type, ype, plac place e of issue ssue,, count ountry ry of iss issue, ue, date date of issue and date of expiry can be stored. This This inclu includes des the class classifi ificat cation ion,, permi permitt numbe number, r, perm permit it type type,, date date of of issue, authority of issue and date of expiry. This information is required if the employee is an expatriate or a resident of Hong Kong, Macao, or Taiwan who wishes to work in mainland China; in such cases, a work permit is required.





7. Legal requirment to capture and maintain details of Employees' renumeration.


Legal requirment to capture and maintain details of Employees' renumeration. Human Capital Management Integration of HR processes and Payroll processes is possible only by localizing critical features specific to your country and legislation. China-specific China-specific payroll data capture, in compliance with Chinese legislative Payroll processing rules, forms a legislative salary computation basis for gross to net processing, payments as well as statutory tax and payroll reporting. Payroll - Payroll data capture Legal Requirement

Feature Name

Feature Description

Delivery Type

Contribution Bases and Rates

With this feature, you can set up the contribution bases and rates for Public Housing Fund, each social insurance type and Enterprise Annuity by contribution area, organization and hukou type, as well as tax thresholds. You can also set up different rounding methods for employees and employers' contribution amounts. With this feature, bank account details of organizations can be captured. For each each employee employee you can override override the Publi Public c Housin Housing g Fund Fund and and Social Insurance contribution contribution area that has been entered in the Statutory Information window. With this feature, you can select a rounding method for an enterprise annuity contribution for a business group for both employees and employers. You use this information for rounding the enterprise annuity contribution amounts during payroll processing.


These include – but are not limited to – seeded classifications classifications for direct payments that are not subject to tax, employer liabilities such as employers' contribution to Public Housing Fund and Social Insurances, taxable earnings, severance payments, statutory deductions such as individual income tax and employees' contribution to Public Housing Fund and Social Insurances and information for distinguishing different types of transactions and steering processing order and additional rules within payroll calculations. The These incl includ ude e a vari ariety ety of of ear earni ning ngs s, Ent Enter erpr pris ise e Ann Annui uitty ded dedu uctio ction ns and statutory deductions such as taxes, Public Housing Fund and Social Insurances (Basic Pension Insurance, Basic Medical Insurance, Statutory Supplementary Medical Insurance, Unemployment Insurance, Work-related Injury Insurance and Maternity Insurance). Seed eeded tax tax tab tablles inclu nclud de Ch China ina tax taxat atio ion n rat rates es and the quic uick deduction amount. With With this this feat featur ure e you you can can set set up and and upd updat ate e tax tax exem exempt pt amou amount nts s by by city/region. The tax exempt amounts for Beijing, Shanghai, Tianjin,


Organization Payment Methods Override Override Contribut Contribution ion Area

Rounding Method for Enterprise Annuity

Seeded Classifications Classifications

Seed Seeded ed Elem Elemen entts

Seed Seeded ed Tax Tax Tab Table les s Tax Tax Exe Exemp mptt Amo Amoun untt

9





ORACLE DATA SHEET

Feature Name

Feature Description

Delivery Type

Shenzhen and foreigners are delivered and maintained by Oracle.

8. Maintain & Process Payroll to meet country's legal requirements


Description


Maintain & Process Payroll to meet country's legal requirements Human Capital Management Organizations in China need to process their payrolls according to Chinese legislation, such as calculating an employer's individual income tax liability and deduction of the appropriate sums from employee earnings, and application of the special tax calculation method for annual bonus payments and severance payments. The following statutory earnings/deductions are required: 1) Public Housing Fund 2) Social Insurances 3) Termination payments In addition, calculation of Enterprise Annuity contributions, income tax for employees in specific industries and processing of retro earnings/deductions per the requirements of China legislation are also required. Payroll - Payroll processing Legal Requirement

Feature Name

Feature Description

Delivery Type

Direct De Deposits

Direct de deposits ca can be be ma made in in th the Ch China Co Construction Ba Bank (Shanghai branch) magnetic tape format. You can define other formats when you implement Oracle HRMS for China. Oracle HRMS enables you to record enterprise annuity information for your employees. Enterprise Annuity is an optional contribution made by both the employer and employee, and are payments made in addition to the old age pension. Employees who have completed their probationary period with an organization are eligible to contribute to their enterprise annuity. The employee is entitled to receive the amount they have contributed once they have retired. Contributions can be received as either a lump sum, or in installments. Contributions due from both employer and employee are calculated using a percentage or fixed rate. The contributions that an employee makes are calculated after tax has been deducted from the earnings. When the final amount is distributed to the employee, tax is also calculated and deducted on the employer's contributions and on the total earnings on the investment. Oracle Payroll enables employers to calculate income tax for employees in specific industries such as ocean-shipping, deep sea fishing and mining, who receive their profits or the rest of their annual salary as a lump sum amount once every year. The employers can disburse the amount either at the end of the current year or at the beginning of the following year. Hence while calculating the tax for these additional earnings, the employer determines the yearly total earnings and yearly income tax of the employee depending on the year for which it is being paid. Oracle HRMS for China allows you to calculate employees' individual income tax and deduct the appropriate sums from employees' earnings whenever you pay them salaries and wages, by applying the China tax rate, quick deduction amount and the tax area's tax exempt amount. Oracle HRMS for China allows you to enter and record information about employer and employee contributions to Public Housing Fund (PHF) and other social insurance deductions. Oracle HRMS seeds six types of social insurance deductions, though not all of these are mandatory for each contribution area. They are Basic Pension Insurance, Basic Medical Insurance, Statutory Supplementary Medical Insurance, Unemployment Insurance, Work-related Injury Insurance and Maternity Insurance. A contribution area refers to the region responsible for administering and collecting statutory deductions, excluding taxation. An employee's contribution area may be different to their tax area. The tax area determines an employee's taxation rate. Payroll retro-calculation (retro) is the process of recalculating prior period's payroll results in order to determine if any payment differences have taken place. Oracle Payroll for China can process retro elements per the requirements of China legislation, including


Enterprise Annuity Contributions

Income Tax Calculation for Employees in Specific Industries

Normal Income Tax Calculation

Public Housing Fund and Social Insurances

Retropay

10






ORACLE DATA SHEET

Feature Name

Tax Tax on on Ann Annua uall Bon Bonus us

Term Termin inat atio ion n Paym Paymen ents ts

Feature Description

Delivery Type

Tax process, Social Insurance contribution process, PHF contribution process and Enterprise Annuity contribution process. Orac Oracle le Payr Payrol olll ena enabl bles es empl employ oyer ers s to to cal calcu cula late te empl employ oyee ees' s' Indi Indivi vidu dual al Income Tax (IIT) payable on the Annual Bonus, once per taxation year. You include all the other forms of bonus payments such as semi-annual bonuses, quarterly bonuses, overtime bonuses, and attendance bonuses with the normal salary income for individual income tax purposes. If an employee receives bonus payments more than once in a year, you can select only one each year as the annual bonus. Oracle Payroll calculates tax for elements in this classification classification using the preferential tax policy. Oracle Payroll taxes all other bonuses – such as semi-annual, quarterly, attendance, or overtime bonuses – at the employee's normal tax rate along with basic salary. Term Termin inat atin ing g an assi assign gnme ment nt inv invol olve ves s the the proc proces essi sing ng of of term termin inat atio ion n payments and termination deductions. Each of these is calculated according to the type of termination and the appropriate payment or deduction classification. classification. Terminations within Oracle HRMS for China can be either: 1. Severance Payments 2.Termination Payments. The type of termination will determine the taxation treatment of termination payments. If an employer terminates a worker, they pay the worker a severance payment. Termination Payments can be any or both of the following types: 1. Leave compensation for annual leave balance. 2. Pay in lieu of short notice period.



9. Legislative Reporting


Legislative Reporting Human Capital Management Organisations in China need to generate payslips, payroll reports and other types of reports in line with Chinese legislative requirements. Payroll - Payroll reporting and interfaces Legal Requirement

Feature Name

Feature Description

Delivery Type

Employee Income Payment Detail Report

You need to fill out and submit the Employee Income Payment Detail report on a monthly basis for all your workers, even if the worker's total income is less than the tax exemption amount for the corresponding city or region. The Employee Income Payment Detail report is required by the taxation administration as a supplementary report to the Individual Income Tax Withholding report, and contains detailed information for the summarized information provided in the Individual Income Tax Withholding report. Use the Individual Income Tax Withholding Report to send your organization's declaration on the withholding of income tax. This monthly report provides summarized information for all tax group rates separately. You can run this report once a month to generate a text-delimited report. This report contains information about the PHF/SI contribution amount deducted by the employer from the employee's salary for the current month. Customers use this report to fill out the pre-printed government form, and then send the form to the local PHF/SI management centre. You can run this yearly report to generate a text-delimited report that contains information about the employee's and employer's contribution base for the next year. Customers use this report to fill out the pre-printed government form and then send the form to the local PHF/SI management centre. You run this report once a month to generate a text-delimited report. You use this as a sample report to fill out the pre-printed government form, and then send the form to the local PHF/SI management centre. The generated report contains information about: 1. New PHF/SI accounts created for new or transferred employees. 2. Closed PHF/SI accounts of existing employees who have been transferred or have left. 3. Closed PHF/SI accounts of employees who have expired.


Individual Income Tax Withholding Report

PHF/SI Contribution Amount Monthly Report

PHF/SI Contribution Base Yearly Report

PHF/SI Employee Monthly Movement Report

11





ORACLE DATA SHEET

Feature Name

Feature Description

Delivery Type

Payslip

A payslip must be provided with every salary payment. The payslip provided is in line with Chinese legislation. The payslip is also available online in employee self-service.


12

ORACLE DATA SHEET

Contact Us For more information about Globalization, please visit oracle.com or call +1.800.ORACLE1 to speak to an Oracle representative.

Copyright © 2009, Oracle Corporation and/or its affiliates. All rights reserved. This document is provided for informational purpos es only and may not be incorporated into a contract or Agreement. The contents hereof are subject to change without notice. This document is not warranted to be error-free, nor is it subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Please note that Country Specific Features Data Sheets for Oracle products provide a brief introduction to country requirements for the applicable Oracle products, and the features of the applicable Oracle products that may be delivered by Oracle in support of those requirements, when you acquire such products. The data sheets do not provide an exhaustive, detailed guide for features and do not provide implementation, support, consulting or any other services or considerations. considerations. For additional details, please see the appropriate product implementation guides. In order to more fully understand features and implementation details, and to assess specific circumstances, please engage with the appropriate local Oracle Consulting Services organization. Oracle Oracle is a regist registere ered d trade tradema mark rk of Oracle Oracle Corpo Corporat ration ion and/o and/orr its affilia affiliates tes.. Other Other name names s may may be trade tradema marks rks of their their respec respectiv tive e owners.

13

China

Recommend Documents