Tax

PRC Tentative Regulations on Value-added Tax (Revised) [Full Text Translation]
中华人民共和国增值税暂行条例 (修订)
VAT system changed from production-based to consumption-based.

PRC Tentative Regulations on Consumption Tax (Revised) [Full Text Translation]
中华人民共和国消费税暂行条例 (修订)
According to the revised Regulations, the amount of consumption tax payable may be calculated ad valorem, at a flat rate or by a combination of the two.

PRC Tentative Regulations on Business Tax (Revised) [Full Text Translation]
中华人民共和国营业税暂行条例 (修订)
Calculation of business turnover for business tax purposes revised.

Carbon tax proposed to battle environmental challenges
Report suggests provinces bear responsibilities for their own emissions

State Council, PRC Tentative Regulations on Value-added Tax (Revised) [Legislation Digest]
国务院中华人民共和国增值税暂行条例 (修订)
VAT system changed from production-based to consumption-based.

State Council, PRC Tentative Regulations on Consumption Tax (Revised) [Legislation Digest]
国务院中华人民共和国消费税暂行条例 (修订)
More high-end products subject to consumption tax.

State Council, PRC Tentative Regulations on Business Tax (Revised) [Legislation Digest]
国务院中华人民共和国营业税暂行条例 (修订)
Calculation of business turnover for business tax purposes revised.

A new tax revolution
A sweeping VAT reform takes place in China on January 1 2009. It will benefit many domestic companies but could block the cash-flow of some foreign invested enterprises, removing advantages enjoyed under the old tax regime. By Joanna Law.

Fight against hot money creates new risks for traders
China once welcomed foreign exchange inflows; now, hot money is threatening its developing economy. To control the flow of trade funds, the regulator has set requirements for compliance with rules on advance payments and deferred receipt of payments. The new rules could lead to tax losses and fines for exporters. By David Wang, Chris Yang and Chris Chen, Broad & Bright Shanghai Office.

Taxation in Kazakhstan

Ministry of Finance and State Administration of Taxation, Circular on Raising the Export Tax Rebate Rates on Certain Commodities [Legislation Digest]
财政部、国家税务总局关于提高部分商品出口退税率的通知
Export tax rebate rate lowered for textile products.

Ministry of Finance and State Administration of Taxation, Circular on Revising Tax Policies on the Real Property Trading Sector [Legislation Digest]
财政部、国家税务总局关于调整房地产交易环节税收政策的通知
Curbs on property transactions lifted.

Government increases mining requirements for foreign investors

State Administration of Taxation, Official Reply on Issues Relevant to the Levy of Individual Income Tax on Conditional Agreements Between Individuals and Real Property Developers on Purchase of Shop Premises at a Preferential Price [Legislation Digest]
国家税务总局关于个人与房地产开发企业签订有条件优惠价格协议购买商店征收个人所得税问题的批复
Individuals to pay tax for favourable property deals.

Circular on Issues Relevant to the Revision of the Rates of Pre-tax Deductions from Individual Income Tax of Family Proprietorships, Wholly Individually-owned Enterprises and Partnerships [Full Text Translation]
关于调整个体工商户个人独资企业和合伙企业个人所得税税前扣除标准有关问题的通知
The rate for the deduction of the expenses before individual income tax of the owners of family proprietorships and of investors in wholly individually-owned enterprises and partnerships is uniformly set at Rmb24,000 per year (Rmb2,000 per month).

China’s Leading Lawyers
How do the Leading Lawyer nominations reflect the evolution of the legal system in China? China Law & Practice takes a closer look at the results, and speaks to the nominees about their areas of expertise. Hear from the experts what the future holds for China law.

Ministry of Finance and the State Administration of Taxation, Circular on Issues Relevant to the Revision of the Rates of Pre-tax Deductions from Individual Income Tax of Family Proprietorships, Wholly Individually-owned Enterprises and Partnerships [Legislation Digest]
财政部、国家税务总局关于调整个体工商户个人独资企业和合伙企业个人所得税税前扣除标准有关问题的通知
The rate for pe-tax deduction of expenses for individual investors of partnerships raised.

State Administration of Taxation, Circular on the Deed Duty Policy on the Acceptance of the Assets of the Parent Company by its Wholly-owned Subsidiary [Legislation Digest]
国家税务总局关于全资子公司承受母公司资产有关契税政策的通知
Deed duty exempted for internal asset transfer

State Administration of Taxation, Circular on Issues Relevant to Terminating the Implementation of the Policy of Crediting Purchases of Domestically-produced Equipment as Investments by Enterprises Against Enterprise Income Tax [Legislation Digest]
国家税务总局关于停止执行企业购买国产设备投资抵免企业所得税政策问题的通知
Preferential tax policy for purchase of Chinese equipment cancelled.

State Administration of Taxation, Circular on Adding Organizations Entitled to Tax Exemption on Interest to the China-Canada Tax Treaty [Legislation Digest]
国家税务总局关于中国-加拿大税收协定中增列利息免税机构的通知
More organizations allowed to enjoy tax exemption in China and Canada.

Measures for the Administration of the Recognition of Hi-tech Enterprises [Full Text Translation]
高新技术企业认定管理办法
The Measures set forth the criteria for recognition as a hi-tech enterprise. After obtaining qualifications as a hi-tech enterprise, the enterprise is entitled to tax reduction or exemption.

High- and New-Technology Enterprises: Updated Preferences, Qualifications and Trade-Offs
Earlier this year the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation issued a circular containing new Measures on HNTE Recognition. These measures, along with a Catalogue of supported industries, detail HNTE recognition requirements and necessary administration procedures under the PRC Enterprise Income Tax Law.

Ministry of Science and Technology, Ministry of Finance and State Administration of Taxation, Measures for the Administration of the Recognition of Hi-tech Enterprises [Legislation Digest]
科技部、财政部、国家税务总局高新技术企业认定管理办法
Stricter recognition standards for hi-tech enterprises.

State Administration of Taxation, Circular on Issues Relevant to the Tax Year for Income Tax of Foreign Enterprises [Legislation Digest]
国家税务总局关于外国企业所得税纳税年度有关问题的通知
Foreign enterprises pay income tax according to the Gregorian calendar year.

State Administration of Taxation, Circular on Business Tax Issues Concerning the Return of Leaseholds by Land Users to Land Owners [Legislation Digest]
国家税务总局关于土地使用者将土地使用权归还给土地所有者行为营业税问题的通知
Return of leaseholds exempted from business tax.

State Council, Circular on the Implementation of Transitional Preferential Tax Treatment for Hi-tech Enterprises Newly Established in Special Economic Zones and the Shanghai Pudong New Area [Legislation Digest]
国务院关于经济特区和上海浦东新区新设立高新技术企业实行过渡性税收优惠的通知
Transitional preferential tax treatment for hi-tech enterprises issued in view of the Enterprise Income Tax Law.

Current Policies and Prospects on Cross-straits Economic Exchanges
Vice Chairperson of the Mainland Affairs Council Liu Te-shun (LTS) spoke with Chris Bisogni (CB) and shared his thoughts on the development of cross-straits economic ties and what the Taiwanese people can expect as a result of Ma Ying-jeou’s victory in the recent election.

Circular on the Handling of Relevant Matters Following the Abolition of Several Preferential Tax Policies Previously Available to Foreign-invested Enterprises and Foreign Enterprises [Full Text Translation]
关于外商投资企业和外国企业原有若干税收优惠政策取消后有关事项处理的通知
The Circular clarifies three issues arising after the abolition of several preferential tax policies previously available to foreign-invested enterprises and foreign enterprises.

Tax Treatment of Mergers, Divisions and Reorganizations

State Administration of Taxation, Circular on the Handling of Relevant Matters Following the Abolition of Several Preferential Tax Policies Previously Available to Foreign-invested Enterprises and Foreign Enterprises [Legislation Digest]
国家税务总局关于外商投资企业和外国企业原有若干税收优惠政策取消后有关事项处理的通知
Tax refund policy for reinvestments by foreign investors clarified.

State Administration of Taxation, Circular on Issues Relevant to the Prepayment of Enterprise Income Tax of Real Property Developers [Legislation Digest]
国家税务总局关于房地产开发企业所得税预缴问题的通知
Rate of tax prepayment raised to 20% for pre-sold premises.

State Administration of Foreign Exchange and State Administration of Taxation, Circular on Issues Relevant to the Trial Implementation of Tax Filing for Outbound Payments of Trade in Services [Legislation Digest]
国家外汇管理局、国家税务总局关于试行服务贸易对外支付税务备案有关问题的通知
Advance tax filing for the service industry implemented in six places for trial.

State Administration of Taxation, Circular on Issues Relevant to the Administration of Tax Collection Concerning Outbound Payments of Trade in Services [Legislation Digest]
国家税务总局关于服务贸易对外支付税收征管有关问题的通知
Procedures for advance tax filing for the service industry clarified.

State Administration of Taxation, Supplementary Circular on Issues Relevant to the Administration of Tax Collection Concerning Outbound Payments of Trade in Services [Legislation Digest]
国家税务总局关于服务贸易对外支付税收征管有关问题的补充通知
International maritime transport not included in trial advance tax filing.

Tariff/Tax Regulation Committee of the State Council, Circular on Exemption of Export Customs Duty for Certain Products that Enter Special Customs Supervised Zones [Legislation Digest]
国务院关税税则委员会关于对部分进入海关特殊监管区域的产品不征收出口关税的通知
Manufacturers in special processing zones entitled to export customs duty exemption for purchase of Chinese raw materials.

*Web Only Translation - PRC Individual Income Tax Law (5th Revision) [Full Text Translation]
中华人民共和国个人所得税法 (第五次修正)
The limit for deduction of expenses raised for wage income of individuals.

PRC Individual Income Tax Law (5th Revision) [Legislation Digest]
中华人民共和国个人所得税法 (第五次修正)
The limit for deduction of expenses raised for wage income of individuals.

State Administration of Taxation, Circular on Issues Relevant to Prepayment of Enterprise Income Tax [Legislation Digest]
国家税务总局关于企业所得税预缴问题的通知
Certain enterprises prepaying tax on a monthly basis now may prepay tax on a quarterly basis.

Key Clarifications on Preferential Tax Treatment in the Enterprise Income Tax

The Draft Energy Law: a Possible Legal Protocol to Help China Go Green
As the second largest emitter of greenhouse gas in the world after the United States, the PRC is under great pressure and scrutiny from other countries, and has dedicated a great deal of resources and legislation effort in order to lower its emissions. Can the draft Energy Law successfully turn China into an energy-efficient country?

Implementing Regulations for the PRC Enterprise Income Tax Law [Full Text Translation]
中华人民共和国企业所得税法实施条例
The Implementing Regulations clarify enterprise income tax matters in respect of revenue, deductions, tax treatment of assets, tax payable, preferential tax treatment, withholding at source, special tax adjustments, and administration of levy and collection.

NEW INCOME TAX LAW INCREASES DOMESTIC ENTERPRISES' COMPETITION

State Council, Implementing Regulations for the PRC Enterprise Income Tax Law [Legislation Digest]
国务院中华人民共和国企业所得税法实施条例
Enterprise tax deductions further clarified in implementing regulations.

State Council, Circular on the Implementation of Transitional Preferential Enterprise Income Tax Policies [Legislation Digest]
国务院关于实施企业所得税过渡优惠政策的通知
State Council issues transitional preferential tax policies in view of the implementation of the PRC Enterprise Income Tax Law.

Other Recent Legislation for this Month [Legislation Digest]