Legal

Local rules rolled out first in hope of easing business pressures

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.

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.

Conversion of unlisted foreign investment shares into tradable B-shares streamlined.

The Chinese capital markers have developed rapidly and sponsorship activities have increased. New Measures for the administration of securities sponsorship aim to fix the weaknesses in the previous legal framework. They will have a significant impact on sponsoring companies and their legal advisers. By Christophe Han and Patrick Chen, Llinks Law Offices, Shanghai.

Janet HuiJun He Law [email protected] November 18 2008, the Anti-Monopoly Bureau of the Ministry of Commerce (Mofcom) announced its first conditional…

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.

Calculation of business turnover for business tax purposes revised.

A new Circular makes it easier for foreign investors to get approval for the conversion of their unlisted shares into B-shares. This may finally render non-listed foreign-investment shares in these issuers obsolete. By Heiner Braun and Miles Ma, Freshfields Bruckhaus Deringer, Shanghai.