Tax

Taxing Rmb funds with foreign-invested limited partnerships
With new measures allowing overseas private equity players to adopt a new structure for its Rmb funds, authorities have yet to concretely define certain terms of a partnership in order to set a conclusive tax rate

Revisiting operations will help prepare for tax policy shifts
Export tax rebate reductions for high-pollution manufacturers

Reasons to invest in China’s strategic emerging industries
Authorities formulating attractive subsidies and tax breaks

Measures for Administration of the Levy of Income Tax on Non-tax-resident Enterprises by Assessment [Full Text Translation]
非居民企业所得税核定征收管理办法
The Measures state that assessment of taxable income of non-tax-resident enterprises shall be based on total revenue, costs and expenses, or revenue converted from operational expenditures.

State Council, Approval and Transmission of the «National Development and Reform Commission, Circular on the Opinion on the Major Work on Deepening the Reform of the Economic System in Year 2010» [Legislation Digest]
国务院批转发展改革委关于2010年深化经济体制改革重点工作意见的通知
China seeks to levy property taxes.

State Administration of Taxation, Measures for Administration of the Levy of Income Tax on Non-tax-resident Enterprises by Assessment [Legislation Digest]
国家税务总局非居民企业所得税核定征收管理办法
Sat sets forth clear guidelines for separating PRC and non-PRC revenues of non-tax-residents.

Circular on Measures for Reviewing the Qualifications of Foreign-invested Research and Development Centres for Tax Exemptions/Refunds on Procured Equipment [Full Text Translation]
关于外资研发中心采购设备免/退税资格审核办法的通知
The Circular clarifies matters relating to the exemption of import taxes on articles imported by foreign-invested research and development centres for scientific and technological development purposes and the refund in full of the value-added tax on Chinese-made equipment procured by them.

Equipment tax break for R&D centres
Though new measures provide clarifications about R&D centre eligibility requirements for equipment tax benefits, investors should pay attention to several issues

State Council, Several Opinions on Further Improving the Work on the Use of Foreign Investment [Legislation Digest]
国务院关于进一步做好利用外资工作的若干意见
State Council delegates approval of foreign investment to lower level authorities.

Homing in on transfer pricing
Tax authorities across China are strengthening transfer pricing regulations. They are now enforcing the collection of contemporaneous documentation and foreign companies must ensure they prepare these by the deadlines issued

Ministry of Commerce, Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on Measures for Reviewing the Qualifications of Foreign-invested Research and Development Centres for Tax Exemptions/Refunds on Procured Equipment [Legislation Digest]
商务部、财政部、海关总署、国家税务总局关于外资研发中心采购设备免/退税资格审核办法的通知
Tax exemption for foreign-invested R&D centres clarified.

Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on Launching the Pilot Project for Export Tax Rebate for Vessels under Lease Financing in the Tianjin Municipality [Legislation Digest]
财政部、海关总署、国家税务总局关于在天津市开展融资租赁船舶出口退税试点的通知
Tianjin exempts tax on sale of vessels to foreign lessees.

Rep office clampdown
A new tax circular bolsters the administration on representative offices. This will ensure greater tax compliance and shake them out of complacency

Shanghai Municipality, Several Provisions on Promoting the Development of the Alternative Energy Industry in Shanghai [Legislation Digest]
上海市关于促进上海新能源产业发展的若干规定
Shanghai encourages the development of alternative energy.

Revisit offshore SPVs to avoid taxation

Circular on Strengthening the Administration of Enterprise Income Tax on Income Derived from the Transfer of Equity of Non-tax-resident Enterprises [Full Text Translation]
关于加强非居民企业股权转让所得企业所得税管理的通知
The Circular aims to prevent tax evasion by non-tax-resident enterprises through transfer of equity.

State Administration of Taxation, Circular on Strengthening the Administration of Enterprise Income Tax on Income Derived from the Transfer of Equity of Non-tax-resident Enterprises [Legislation Digest]
国家税务总局关于加强非居民企业股权转让所得企业所得税管理的通知
SAT cracks down on tax evasion by non-tax-resident enterprises.

Ministry of Finance and State Administration of Taxation, Circular on Revising the Business Tax Policy for Assignment of Residential Premises of Individuals [Legislation Digest]
财政部、国家税务总局关于调整个人住房转让营业税政策的通知
Preferential tax policy for second-hand residential property sale removed.

Extraterritorial enforcement of corporate income tax
A tax circular which seeks to strengthen the administration of tax on income derived from equity transfer may have a profound impact on non-resident investors using offshore vehicles. But the authorities have some legal hurdles to clear

New Circular addresses equipment cost rise