Legislation

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).

Before a securities company submits an application for an initial public offering of shares and the listing thereof, it shall submit relevant materials to the China Securities Regulatory Commission and apply for the issuance of a regulatory opinion.

When an IPO issuer restructures identical, similar or related businesses under the same corporate controller during the reporting period, it shall pay close attention to the effect of the reorganization on its total assets, or its operating revenue or gross profit.

The Provisions set forth criteria for a people's court to accept a petition of a shareholder or shareholders to dissolve the company.

The Circular sets forth the criteria for asset appraisal firms applying for securities and futures-related business valuation qualifications.

Recent legislative activities from China

Return of leaseholds exempted from business tax.

Foreign enterprises pay income tax according to the Gregorian calendar year.

Threshold for recognition as material asset reorganizations raised.