Legislation

Promulgated: May 26 2006Effective: July 1 2006Main contents: The Supplementary Provisions allow companies with an investment nature to make strategic investments…

Promulgated: March 28 2006 Effective: May 1 2006Main contents: The Measures comprise:Part One: General ProvisionsPart Two: Dutiable Value of Imported GoodsPart…

After the third revision to PRC Individual Income Tax Law taxable income is now the monthly income less a deduction of Rmb1,600 for expenses.

The new rules revises six aspects including increasing the deductible amount for income from contracting for or leasing the operation of enterprises or institutions and clarifying tax returns procedures while further stipulating the duties of withholding agents in relation to tax withheld on the full amount for all personnel.

The Supplementary Provisions relaxes pre-requisite for foreign investment in the PRC, eligibility of investment companies being recognized as regional headquarters and foreign exchange control procedures.

The New Opinions on Foreign Investment in China Real Estate represents the PRC government's concern and determination to cool down an overheated real estate market.

This Circular provides implementing procedures to the earlier issued Tentative Measures for the Administration of Overseas Financial Management Services Offered by Commercial Banks on Behalf of Customers.

The Circular permits currency conversions between different foreign currencies at designated banks. It removes the foreign exchange limit and allows the collection of premiums either in renminbi or foreign exchange.

The Provisions define applicable laws where international practices represented by the usual UCP 500 do not cover the disputed LC issue, the legal relationship between the parties to an LC, and the concept of 'LC fraud'.