China has traditionally restricted foreign investment in the retail and wholesale sectors with the aim of nurturing strong domestic players before their foreign counterparts would be let into the country. However, in order to become a member of the World Trade Organisation, China has committed itself to gradually opening up its distribution sector to foreign investment ...
China has traditionally restricted foreign investment in the retail and wholesale sectors with the aim of nurturing strong domestic players before their foreign counterparts would be allowed into the country. Since becoming a member of the World Trade Organisation, China has gradually opened up its distribution sector to foreign investment ...
The Ministry of Security and the Ministry of Foreign Affairs jointly promulgated the Measures for the Administration of the Examination and Approval of the Permanent Residence in China of Foreigners on 15 August 2004. The Regulations, which entered into effect on the date of promulgation, set forth the conditions upon which foreigners can obtain permanent residence in China. The Measures define permanent residence for foreigners as residence in China that is not subject to a time limit ...
The State Administration of Taxation issued the Measures on the Self- Declaration of Personal Income Tax (Trial Implementation) on 6 November 2006. The Measures cover the filing process for those who satisfy one of the following conditions:1. Annual income of 120,000RMB or more; 2. Wages or stipends earned from two or more sources within China; 3. Income earned outside China; 4. Any acquired taxable income without withholding; 5 ...
On 16 October 2006, the People’s Government of Guangzhou Municipality promulgated the Regulations of Guangzhou Municipality on Encouraging the Establishment of Headquarters and Regional Headquarters with Foreign Investment. The Regulations, which are effective for five years from the date of promulgation (i.e ...
The Ministry of Commerce (“MOFCOM”) issued the Notice of the Ministry of Commerce on Entrusting Local Authorities with the Examination and Approval of Commercial Enterprises with Foreign Investment on 9 December 2005. The Notice, which became effective on 3 March 2006, is expected to reduce the time required for setting up a commercial enterprise with foreign investment (“commercial FIE”) ...
The Ministry of Commerce (“MOFCOM”) issued the following notices on 20 January 2006: the Notice on Entrusting the Provincial Level Authorities in Charge of Commerce with the Examination and Approval, and Administration of Non-Vessel Carrier Enterprises with Foreign Investment, the Notice on Entrusting the Provincial Level Authorities in Charge of Commerce with the Examination and Approval, and Administration of Road Transportation Enterprises with Foreign Investment, the Notice on Entrusting the
The State Council issued the Regulations of the People's Republic of China for the Administration of the Registration of Companies on 18 December 2005. The Regulations have replaced 1994 regulations of the same name with effect from 1 January 2006. The revisions to the Regulations bring the rules for company registration in line with the amended Company Law of the People’s Republic of China (“Company Law”) (as discussed in issue 2005.3 of China Legal Update) ...
The Ministry of Commerce (“MOFCOM”) issued the Measures for Registration for the Record of Foreign Trade Operators on 25 June 2004. The Measures, which entered into effect on 1 July 2004, are based on the revised Foreign Trade Law and specify registration rules applicable to operators of commodity or technology import-export business (“foreign trade operators”) ...
The State Administration of Foreign Exchange ("SAFE") issued the Notice on Adjusting the Policies on Foreign Exchange Control for Current Account Items on 14 April 2006. The Notice, which became effective on 1 May 2006, further relaxes foreign exchange control over current account items ...
The China International Economic and Trade Arbitration Commission ("CIETAC") has recently updated the Arbitration Rules of CIETAC 中国国际经济贸易仲裁委员会仲裁规则 ("Rules"). The revised Rules came into effect on 1 May 2005. Specialist arbitration rules The revised Rules provide for the possibility of using rules, which have been tailor-made for specific industries ...
The China International Economic and Trade Arbitration Commission ("CIETAC") also updated its financial arbitration rules, the Arbitration Rules for Financial Disputes of CIETAC. The revised Financial Arbitration Rules replace the 2003 rules (as discussed in the July 2003 Issue of China Legal Update - http://www.deacons.com.hk/eng/knowledge/knowledge_156.htm) and took effect on 1 May 2005 ...
At the 18th Session of the Standing Committee of the 10th National People’s Congress held on 27 October 2005 amendments were adopted to the Individual Income Tax Law of the People's Republic of China. The amendments were promulgated by President Hu Jintao on 27 October 2005 and enter into effect on 1 January 2006. Tax free allowance A first amendment raises the tax free allowance applicable to wages and salaries from RMB 800 to RMB 1,600 ...
The National Bureau of Statistics promulgated the Measures of the National Bureau of Statistics for the Administration of Foreign-related Surveys 13 October 2004. The Measures, which came into force on the date on which they were promulgated, replace the 1999 Provisional Measures of the National Bureau of Statistics for the Administration of Foreign-related Social Surveys ...
The State Administration of Taxation revised the Rules for the Administration of Tax on Business Transactions Between Affiliated Enterprises (for Trial Implementation) effect from 22 October 2004. The Rules replace a regulation of the same name issued in 1998 (“1998 Rules”). Expanded scope of application The Rules have a wider scope of application than the 1998 Rules ...
The State Council promulgated the Regulations of the People's Republic of China on Road Transportation on 30 April 2004. The Regulations, which entered into effect on 1 July 2004, are applicable to the road transportation of goods, the road transportation of persons, the operation of road intervals, the repairing of motor vehicles, and the training of motor vehicle drivers. They are not, however, applicable to the urban transportation of persons by bus or taxi ...
The State Development and Reform Commission (“SDRC”) promulgated the Provisional Measures for the Administration of the Verification of Foreign Investment Projects on 9 October 2004. The Provisional Measures, which entered into effect on the date of their promulgation, are based on the Law of the People's Republic of China on Administrative Licensing and the Decision of the State Council on the Reform of the Investment System (as discussed respectively in the No ...
The State Administration of Taxation (“SAT”) issued the Implementing Rules for Advance Pricing Arrangements for Business Dealings Between Affiliated Enterprises (for Trial Implementation) on 3 September 2004. The Implementing Rules, which became effective on the date on which they were issued, represent another development in China’s legal framework for transfer pricing (see previous article in this China Legal Update) ...
In 2005, China’s State Administration of Foreign Exchange ("SAFE") released the Circular on Verification of Quotas for 2005 on Short-term Foreign Loans of Overseas-funded Banks ("Circular") and its Supplementary Circular on Questions Related to Renminbi Loans with Guarantees in Foreign Exchange ("Supplementary Circular", and together the "Circulars"). The Circulars are intended to facilitate the enforcement of loan registration requirements on renminbi loans with guarantees in foreign exchange ...
On 20 April 2005, the People’s Bank of China (“PBOC”) and China Banking Regulatory Commission (“CBRC”) promulgated the Administration of Pilot Projects for Securitisation of Credit Assets Procedures (“the Procedures”). The enactment of the Procedures has received widespread support since they reflect one of the first attempts at regulating securitisation in China ...
On 27 November 2006, the Ministry of Finance and State Administration of Taxation jointly issued the Notice Regarding Several Stamp Tax Policies. The Notice states that:1. Stamp tax will be levied on contracts submitted electronically. 2. Stamp tax will be levied on purchase and sale contracts between power plants and power grid networks and on those between two power grid networks ...
The State Council issued the Decision of the State Council on the Reform of the Investment System on 17 July 2004. The Decision introduces a number of significant changes to the regulatory system applicable to investments in China. The key changes are set forth below. Approval and recordal system The Decision abolishes the government examination and approval system for domestic projects which do not require government investment ...
The State Administration for Taxation issued the Reply of the State Administration of Taxation on Issues relating to Tax Refund for Reinvestment by Foreign Investors on 20 October 2005. The Reply explains the conditions under which a foreign investment enterprise (“FIE”) can obtain a rebate on its enterprise income tax (“EIT”) for re-investment of its profits if such re-investment is made in instalments or in phases ...
