Tax

Daisy Duan and Linlin Cao of King & Wood Mallesons review and highlight the new individual income tax rules and major tax rules issued in 2019, which may impact on foreign companies doing business in China

Eligible consumption taxpayers are re-defined

VAT tax period and rates are revised

New consumption tax draft law puts State Council center stage; major mobile apps caught for illegal data collection practices; and NPC launches online platform for submitting constitutional review requests

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