Tax

Pre-tax deduction of insurance companies is clarified

More tax incentives are offered to IC and software enterprises

New tax incentives are issued for Chinese software and integrated circuitry companies, as international companies withdraw from Huawei’s supply chain under U.S. pressure; former head of the CSRC, Liu Shiyu, is facing a likely corruption investigation; and China’s private equity sector comes under CSRC scrutiny, with warnings issued to several firms.

Central banks is expected to increase easing measures in the financial sector; Industry regulator calls for P2P lenders to register and consolidate; and trade war with the U.S. may cause delay of China’s planned property tax legislation.

Ericsson faces investigation over its intellectual property licensing practices; investors in CDRs of innovative enterprises will enjoy a three-year tax break on profits; and China issues a new rule to improve the supervision of elderly care services.

VAT rates are lowered for import and export

Residency rules clarified for individuals without a residence in China

David Liu and Tianxiao Jin of FuJae Partners examine the major amendments to the Individual Income Tax Law, its Implementing Regulations and new supplemental tax circulars, and their impact on expatriate taxpayers

Daisy Duan, partner, and Linlin Cao, senior associate, at King & Wood Mallesons examine the expanded scope of new regulations on tax deferral for qualified foreign investments in the PRC and also compare the differences between the old and new requirements

Venture capital firm partners may pay tax on an investment fund basis