Tax

Foreign Investment Industrial Guidance Catalogue (Amended in 2007) [Full Text Translation]
外商投资产业指导目录 (2007年修订)
The new guidance catalogue has re-defined industries into those that are encouraged, restricted or prohibited for foreign investment.

Baker & McKenzie's tax practice wins 6 awards

State Administration of Taxation, Circular on Amending the Tax Returns for Self Declaration by Individuals with an Annual Income of Rmb120,000 or More [Legislation Digest]
国家税务总局关于修改年所得12万元以上个人自行纳税申报表的通知
Reporting of revenue from individuals' share transfer required in tax returns.

Guangzhou Municipality, Circular on Increasing the Minimum Amount Subject to Business Tax in the Municipality [Legislation Digest]
广州市关于提高我省营业税起征点的通知
Guangzhou reduces the lower threshold for business tax.

Other Recent Legislation for this Month [Legislation Digest]

State Administration of Taxation, Circular on Revising the Rates on Taxable Income for Assessed Levy of Enterprise Income Tax [Legislation Digest]
国家税务总局关于调整核定征收企业所得税应税所得率的通知
SAT revises enterprise income tax rates for small businesses in eight industries.

State Council, Implementing Measures for Levy and Collection of Individual Income Tax on Interest Income from Savings Deposits (Revised) [Legislation Digest]
国务院对储蓄存款利息所得征收个人所得税的实施办法 (修订)
Individual income tax on savings interest significantly reduced.

State Administration of Taxation, Circular on Issues Relevant to the Pre-tax Deduction of Commission Expenses Incurred by Insurance Enterprises Related to the Surrendered Insurance Policies [Legislation Digest]
国家税务总局关于保险企业发生与退保业务相关佣金支出税前扣除问题的通知
Insurance enterprises allowd to obtain pre-tax deductions of commission expenses for surrendered insurance policies.

State Administration of Taxation, Supplementary Circular on Issues Relevant to the Application of Agreed Tax Rates to the Interest Income of Foreign Nationals and Individual Residents of Hong Kong, Macao and Taiwan Derived from Their Savings Deposits [Legislation Digest]
国家税务总局关于外籍个人和港澳台居民个人储蓄存款利息所得适用协议税率有关问题的补充通知
Tax rates on interest income of foreigners may follow bilateral tax agreements.

State Administration of Taxation, Circular on Issues Relevant to the Cancellation of the Review Authority Required for Temporary Exemption of Individual Income Tax for the Promotion of Practical Application of Scientific and Technological Achievements [Legislation Digest]
国家税务总局关于取消促进科技成果转化暂不征收个人所得税审核权有关问题的通知
Individual income tax exemption formalities streamlined for winners for scientific and technological awards.

Shanghai Municipality, Circular on Issues Relevant to the Levy and Exemption of Land Value-added Tax on the Transfer of Non-ordinary Residential Premises by Individuals [Legislation Digest]
上海市关于个人转让非普通住房征免土地增值税有关问题的通知
Land value-added tax levied to cool down the property market in Shanghai.

China VAT Export Rebate Cuts: Impact on Sourcing&Trade Imbalances
Many exports from China are subject to higher net value-added tax (VAT) costs under a notice effective from July 1 2007.

State Administration of Taxation, Official Reply on the Issue of the Income Tax Treatment of Sale-leaseback Transactions by Foreign-invested Enterprises that Engage in Real Property Development [Legislation Digest]
国家税务总局关于从事房地产开发的外商投资企业售后回租业务所得税处理问题的批复
Tax policy on sale-leaseback transactions by foreign-invested real property developers clarified.

PRC Individual Income Tax Law (4th Revision) [Legislation Digest]
中华人民共和国个人所得税法 (第四次修正)
Tax law revised to allow reduction and waiving of tax on savings interest.

Ministry of Finance and State Administration of Taxation, Circular on Reduction of Export Tax Rebate Rates of Certain Commodities [Legislation Digest]
财政部、国家税务总局关于调低部分商品出口退税率的通知
Export tax rebate rate for garments dropped to 11%.

Ministry of Finance and State Administration of Taxation, Circular on Revision of the Stamp Duty Rate for Securities (Stock) Transactions [Legislation Digest]
财政部、国家税务总局关于调整证券(股票)交易印花税税率的通知
Stamp duty reduced to curb securities speculation.

State Administration of Taxation, Official Reply on Tax Issues Concerning the Assignment of Land for Which the Formalities Relevant to the Leasehold Certificate Have Not Yet Been Completed [Legislation Digest]
国家税务总局关于未办理土地使用权证转让土地有关税收问题的批复
Taxes on assignment of land should be paid regardless of completion of formalities.

State Administration of Taxation, Circular on Issues Relevant to the Enjoyment of Preferential Treatment as Production Enterprises by Foreign Investors Investing in and Operating Natural Gas Projects [Legislation Digest]
国家税务总局关于外商投资经营天然气项目享受生产性企业有关问题的通知
Income from the processing and sale of natural gas entitled to preferential tax treatment.

State Administration of Taxation, Circular on Issues Relevant to the Payment of Enterprise Income Tax by Foreign-invested Enterprises Engaging in Telecommunications Business [Legislation Digest]
国家税务总局关于从事通信业务的外商投资企业缴纳企业所得税有关问题的通知
Time limits for depreciation of telecommunications equipment adjusted.

Other Recent Legislation for this Month [Legislation Digest]

Ministry of Finance and State Administration of Taxation, Circular on Tax Policies Relevant to Promoting the Development of Venture Capital Investment Enterprises [Legislation Digest]
财政部、国家税务总局关于促进创业投资企业发展有关税收政策的通知
Tax reduction for venture capital investment enterprises investing in unlisted technology SMEs.

Other Recent Legislation for this Month [Legislation Digest]

Beijing Municipality, Circular on Issues Relevant to the Administration of Levy and Collection of Land Value-added Tax [Legislation Digest]
北京市关于土地增值税征收管理有关问题的通知
Land value-added tax of 1% levied on newly-established premises in Beijing.

PRC Taxes on Hong Kong & Foreign Companies: Clarifications, Changes, Challenges & Opportunities
Hong Kong and foreign companies making frequent visits to mainland China are likely to be subject to PRC enterprise income tax, while foreign investors, lenders and technology licensors will face challenges in seeking the most preferential rates of PRC withholding tax.

Circular on Issues Relevant to the Interpretation and Implementation of Relevant Articles of the «Arrangement Between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income» [Full Text Translation]
关于《内地和香港特别行政区关于对所得避免双重征税和防止偷漏税的安排》有关条文解释和执行问题的通知
This circular implements the .

State Administration of Taxation, Circular on Issues Relevant to the Interpretation and Implementation of Relevant Articles of the «Arrangement Between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income» [Legislation Digest]
关于《内地和香港特别行政区关于对所得避免双重征税和防止偷漏税的安排》有关条文解释和执行问题的通知
Avoidance of double taxation issues between Hong Kong and the mainland clarified.

State Administration of Taxation, Circular on Issues Relevant to Set-off of the Amount of Value-added Tax on Purchases in Connection with Imports of Taxpayers [Legislation Digest]
国家税务总局关于纳税人进口货物增值税进项税额抵扣有关问题的通知
Set-off of Value-added tax on purchases relating to imports clarified.

State Administration of Taxation, Official Reply on the Commencement Time for the Implementation of the Reduction and Exemption of Enterprise Income Tax on Newly-established Enterprises [Legislation Digest]
国家税务总局关于新办企业减免企业所得税执行起始时间的批复
Reduction and exemption of income tax of newly-established enterprises clarified.

Other Recent Legislation for this Month [Legislation Digest]

A Uniform Corporate Income Tax Rate Comes to China

Interpreting the New Enterprise Income Tax Law
The new Enterprise Income Tax Law will take effect on January 2008. What changes should be expected by foreign investors?

PRC Enterprise Income Tax Law [Full Text Translation]
中华人民共和国企业所得税法
This law aims to unify tax treatment among foreign invested enterprises and domestic enterprises through a unified tax rate and corporate income tax system.

Recent Changes to Regulations on Industrial Land
Industrial land is subject to a new set of regulations in terms of granting procedures, granting prices, urban land use tax and requirements governing the conditions of using industrial land.

PRC Enterprise Income Tax Law [Legislation Digest]
中华人民共和国企业所得税法
Enterprise income tax rate for both FIEs and domestic companies set at 25%.

State Administration of Taxation, Circular on the Investigation of Tax Payment of Foreign-invested Enterprises and Foreign Enterprises Responsible for One Single Function of Production [Legislation Digest]
国家税务总局关于调查承担单一生产功能外商投资企业和外国企业纳税情况的通知
FIEs with one single production function under tax investigation.

Ministry of Finance and State Administration of Taxation, Circular on Tax Issues Relevant to the Restructuring of Branches of Foreign Banks into Wholly Foreign-owned Banks [Legislation Digest]
财政部、国家税务总局关于外国银行分行改制为外商独资银行有关税收问题的通知
Tax issues clarified in the restructuring of foreign-invested banks.

Other Recent Legislation for this Month [Legislation Digest]

China's Partnership Enterprise Law Revised

Encouraging Investment with Incentives for Establishing Headquarters in Guangzhou
In its eleventh five-year plan for the development of foreign trade, Guangzhou made a commitment to encourage foreign investors to set up headquarters and regional headquarters in its municipal area.

State Council, Decision on the Amendment of the «PRC Tentative Regulations on Urban and Rural Land Use Tax» [Legislation Digest]
国务院关于修改《中华人民共和国城镇土地使用税暂行条例》的决定
Foreign enterprises, among others, must pay the appropriate amount of land use tax.

Guangzhou City, Provisions on Encouraging Foreign Investors to Invest in and Establish Headquarters and Regional Headquarters [Legislation Digest]
广州市鼓励外商投资设立总部和地区总部的规定
Guangzhou offers incentives for the eestablishment of headquarters and regional headquarters.

Foreign and domestic companies now under the same tax code

Other Recent Legislation for this Month [Legislation Digest]

China Law&Practice: Charting China's Legislation for 20 Years
An overview of the biggest legislative developments over the past two decades and the key issues affecting law firms in China today.

NEW TAX LAW EXPECTED IN MARCH

State Administration of Taxation, Circular on Issues Relevant to the Administration of the Settlement of Land Value-added Tax on Real Property Developers [Legislation Digest]
国家税务总局关于房地产开发企业土地增值税清算管理有关问题的通知
The Circular changes the practice of pre-levying land value-added tax to settlement of the land tax after the project is complete.

State Administration of Taxation, Circular on Clarifying the Implementation of Personally Filing Tax Returns by Individuals with Annual Income of Rmb120,000 or More [Legislation Digest]
国家税务总局关于明确年所得12万元以上自行纳税申报口径的通知
Individuals required to report equity and property speculation gains in income tax returns.

Other Recent Legislation for this Month [Legislation Digest]