Dec. 10 – The People’s Bank of China (PBOC), China’s central banking authority, promulgated the “Interim Measures on Administrating Interbank Certificates of Deposit (PBOC Announcement  No.20, hereinafter refered to as ‘Interim Measures’)” over the weekend as a guideline for financial institutions issuing and trading certificates of deposit (CDs) in the interbank market, which entered into effect immediately on December 9, 2013. Detailed information can be found below. Continue reading
Practice targets further Asia expansion as well as significant IT investments and ISO 27001 standards
Dec. 9 – Dezan Shira & Associates has just concluded its annual meetings, held this year in Shenzhen, China with 36 senior staff flying in from all over Asia and the United States. The firm employs several hundred lawyers, tax experts, accountants and auditors across 18 offices throughout Asia, and is renowned internationally for its work with assisting foreign mid-cap multinationals to establish their operations in Asia, including due diligence, legal establishment and tax planning issues, as well as on-going administration support in accounting, tax filing, payroll, audit, compliance and M&A services. Continue reading
Dec. 6 – Year-on-year import and export figures released by the Chinese government indicate growing ties with ASEAN and increases in bilateral trade with nearly all countries in Asia with the exception of Japan and India. Evidence of increasing consumerism in China came from export figures from Australia, the Philippines and Vietnam, all of whom showed healthy increases of exports to China. Imports from China rose significantly in Malaysia, Thailand and Vietnam, showing that Chinese companies are increasing their spread into Southeast Asia and are taking advantage of the ASEAN-China Free Trade Agreement. Continue reading
Dec. 6 – The executive meeting of China’s State Council chaired by Premier Li Keqiang decided on Wednesday that China will expand its reform of value-added tax (VAT) in lieu of business tax (BT) to the railway transportation and postal service industries starting on January 1, 2014. Continue reading
Dec. 5 – The People’s Bank of China (PBOC) released the “Opinions on Leveraging the Role of Finance in Supporting the Construction of China (Shanghai) Free Trade Zone (hereinafter referred to as ‘Opinions’)” on December 2, which puts forward the detailed financial reform guidelines to support the Shanghai Free Trade Zone (Shanghai FTZ).
The Opinions mainly cover the following four aspects:
- Exploring ways to facilitate investment and financing remittance, and promoting the convertibility of capital account;
- Promoting the cross-border use of RMB to allow enterprises and individuals in the Shanghai FTZ to use RMB to carry out cross-border trade in a more flexible way;
- Pushing forward the market-oriented reform of interest rate; and
- Deepening foreign exchange reform and further streamlining administrative examination and approval, so as to gradually establish a suitable foreign exchange control system.
Detailed information can be found below. Continue reading
Dec. 3 – The new issue of China Briefing Magazine, titled Revisiting China’s Value-Added Tax Reform, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the month of December.
As China’s economy develops, its tax regime has also continued to evolve as the government strives to create a system that best promotes sustainable market growth. Both business tax (BT) and value-added tax (VAT) are indirect taxes that have been implemented in China for decades. VAT income is shared between the central and local governments, with the majority going to the central government.
Meanwhile, the entire BT levied goes to the local governments. While this arrangement ensured a steady and sufficient stream of income for both the central and local governments, it also created high tax burdens for enterprises. Continue reading
Dec. 3 – While all eyes have been on British Prime Minister David Cameron and his entourage in Beijing this week, a much subtler yet nonetheless far reaching agreement was being penned in Bucharest. While many in the British delegation have been sold on theories of mass Chinese investment in the West, it is to Eastern Europe that China is looking for bargains. Chinese Premier Li Keqiang has just signed a deal with Romania to import 500,000 cattle and 3 million pigs from the country over the next three years – a huge number of animals, and reminiscent of China’s recent agricultural deal with Ukraine. Continue reading
Dec. 2 – The Shanghai People’s Government released the “Provisional Measures on the Administration of Wholly Foreign-Owned Medical Institutions in the China (Shanghai) Free Trade Zone (hufubanfa  No.63, hereinafter referred to as the ‘Measures’)” on November 13, which specify the requirements and application materials for foreign investors who wish to set up wholly foreign-owned medical institutions in the Shanghai Free Trade Zone (Shanghai FTZ). Detailed information can be found below. Continue reading