Tax

Circular on Continuing Implementation of the Tax Policy for the Procurement of Equipment by Research and Development Institutions [Full Text Translation]
关于继续执行研发机构采购设备税收政策的通知
Tax policy continued to encourage foreign-invested R&D institutions.

PRC Tentative Regulations on Resource Tax (Revised) [Full Text Translation]
中华人民共和国资源税暂行条例 (修订)
The revised Regulations use ad valorem method for calculation of resource tax for crude oil and natural gas.

Implementing Rules for the PRC Tentative Regulations on Value-added Tax (2nd Revision) [Full Text Translation]
中华人民共和国增值税暂行条例实施细则 (第二次修正)
The revised Rules raise the thresholds for the levy of value-added tax.

Implementing Rules for the PRC Tentative Regulations on Business Tax (2nd Revision) [Full Text Translation]
中华人民共和国营业税暂行条例实施细则 (第二次修正)
The revised Rules raise the thresholds for the levy of business tax.

State Council, PRC Tentative Regulations on Resource Tax (Revised) [Legislation Digest]
国务院中华人民共和国资源税暂行条例 (修订)
Ad valorem method used for calculation of resource tax for crude oil and natural gas.

Ministry of Finance, Ministry of Commerce, General Administration of Customs and State Administration of Taxation, Circular on Continuing Implementation of the Tax Policy for the Procurement of Equipment by Research and Development Institutions [Legislation Digest]
财政部、商务部、海关总署、国家税务总局关于继续执行研发机构采购设备税收政策的通知
Tax policy continued to encourage R&D institutions.

Ministry of Finance and State Administration of Taxation, Plan for Pilot Projects for the Levy of Value-added Tax in Replace of Business Tax [Legislation Digest]
财政部、国家税务总局营业税改征增值税试点方案
Transport and logistics sectors benefit from the new VAT reform.

Ministry of Finance, Implementing Rules for the PRC Tentative Regulations on Value-added Tax (2nd Revision) [Legislation Digest]
财政部中华人民共和国增值税暂行条例实施细则 (第二次修正)
Thresholds for levy of value-added tax raised.

Ministry of Finance, Implementing Rules for the PRC Tentative Regulations on Business Tax (2nd Revision) [Legislation Digest]
财政部中华人民共和国营业税暂行条例实施细则 (第二次修正)
Thresholds for levy of business tax raised.

State Administration of Taxation, Announcement on the Issue Concerning Whether Entities that Employ Disabled Persons are Eligible for More than One Preferential Value-added Tax Policies [Legislation Digest]
国家税务总局关于安置残疾人单位是否可以同时享受多项增值税优惠政策问题的公告
Employers hiring disabled persons may enjoy multiple VAT tax refunds.

State Administration of Foreign Exchange, State Administration of Taxation and General Administration of Customs, Announcement on the Pilot Reform of the Foreign Exchange Control System for Trade in Goods [Legislation Digest]
国家外汇管理局、国家税务总局、海关总署关于货物贸易外汇管理制度改革试点的公告
Export foreign exchange procedures streamlined.

Tax basics for FIEs
Tax specialists offer their insights for potential inbound investors on fundamental tax rules they need to be aware of

Ministry of Finance and State Administration of Taxation, Circular on the Deed Tax Policy for the Change of Ownership of Premises or Land from One Party to a Marriage to Co-ownership by Both Parties to the Marriage [Legislation Digest]
财政部、国家税务总局关于房屋、土地权属由夫妻一方所有变更为夫妻双方共有契税政策的通知
Deed tax exempted for adding spouse’s name to the property.

Rocky road for foreign-invested holding companies
An internal notice from the foreign exchange regulator creates more difficulties for foreign-invested holding companies wanting to reinvest their dividends in China

Ministry of Finance and State Administration of Taxation, Circular on Issues Relevant to the Tax Rate Applicable to and the Setoff of Tax on Overseas Income of High and New Technology Enterprises [Legislation Digest]
财政部、国家税务总局关于高新技术企业境外所得适用税率及税收抵免问题的通知
Foreign income of high and new technology enterprises also enjoys 15% preferential tax rate.

Recent transfer pricing developments
The tax authority continues to ramp up its manpower for transfer pricing-related audits

Announcement on Several Issues Concerning the Administration of Income Tax on Non-tax-resident Enterprises [Full Text Translation]
关于非居民企业所得税管理若干问题的公告
The Announcement clarifies six income tax issues of non-tax-resident enterprise including: issue of withholding enterprise income tax on payable but unpaid income and issue of levy of tax on income derived from the assignment of land use rights.

State Administration of Taxation, Announcement on Several Issues Concerning the Administration of Income Tax of Non-tax-resident Enterprises [Legislation Digest]
国家税务总局关于非居民企业所得税管理若干问题的公告
Tax should be withheld from rent income of non-tax-residents without an establishment.

Announcement on Issues Relevant to Expanding the Scope of Enterprises to Which the Measures for Administration of the Exemption, Setoff and Refund of Tax Apply [Full Text Translation]
关于扩大适用免抵退税管理办法企业范围有关问题的公告
The Announcement allows tax exemption, setoff and refund of tax of integrated circuit design, software design and animation design enterprises to be extended to entrustment of processing.

State Administration of Taxation, Announcement on Issues Relevant to Expanding the Scope of Enterprises to Which the Measures for Administration of the Exemption, Setoff and Refund of Tax Apply [Legislation Digest]
国家税务总局关于扩大适用免抵退税管理办法企业范围有关问题的公告
Tax exemption of software design enterprises extended to entrustment of processing.

State Administration of Taxation, Circular on Earnestly Strengthening the Administration of the Levy and Collection of Individual Income Tax on High-income Earners [Legislation Digest]
国家税务总局关于切实加强高收入者个人所得税征管的通知
SAT checks on investment income of high-income earners.

Risky business in permanent establishments
A recent notice provides clarity on what activities of a Permanent Establishment are subject to taxation. This should prompt foreign businesses to re-evaluate their set-up structure

Withholding tax on consulting services
Instead of easing difficulties, recent tax reforms have increased the tax liabilities and burdens of enterprises providing consulting services

China relaxes rules for technology enterprises
The Chinese authorities have released a new circular that relaxes the recognition criteria for advanced technology service enterprises (ATSEs)