Legislation

Mofcom delegates the authority to approve foreign-invested companies with an investment nature with registered capital of US$100 million or less to provincial-level and sub-provincial-level local authorities.

Acquisition of domestic enterprises in the encouraged or permitted category which transaction amount is less than or equal to US$100 million may be approved by local authorities.

The amended Law allows insurance companies to invest in bonds, stocks, securities investment fund shares and immovable property.

FIEs now enjoy same property tax rates as domestic companies.

Losses in partnerships not allowed to be used to deduct other companies' profits.

Shanghai offers financial incentives to multinational headquarters.

FIEs required to calculate property taxes in renminbi.

“Reasonable wages and salaries” defined for enterprise income tax purposes.

Avoidance of double taxation for Chinese enterprises investing overseas.