May 17 – In order to fully implement the “Regulations on Work-Related Injury Insurance (hereinafter referred to as ‘Regulations’),” China’s Ministry of Human Resources and Social Security (MOHRSS) released the “Opinions on Certain Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance (Renshebufa  No.34, hereinafter referred to as the ‘Opinions’)” on April 25, 2013, which clarifies several issues regarding the implementation of the Regulations. Detailed information can be found below. Continue reading
Regional demographics mean China must cozy up to India or face consequences
Op-Ed Commentary: Chris Devonshire-Ellis
May 17 – Quite possibly the most senseless foreign policy position China has taken over the years has been its stance towards Japan. With diplomacy concentrating on World War II issues that most of the world has now moved on from, sovereignty disputes over close to worthless islands, and a rise of Chinese nationalism fueled by state propaganda, China has succeeded in alienating what remains one of the world’s largest economic powers, as well as a major historic foreign investor in China and a close regional neighbor. While Japanese investment will remain in China, the fallout from the Chinese government-fueled drop off in Japanese sales to China has made the Japanese business community now feel unwelcome in the country. Consequently, future Japanese investment is looking for more sustainable, and friendly, investment relations across the rest of Asia. Continue reading
May 16 – China’s National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC) jointly released the “Catalogue of Priority Industries for Foreign Investment in Central and Western China (hereinafter referred to as the ‘Catalogue’)” on May 14, which is scheduled to take effect on June 10, 2013. The Catalogue replaces its predecessor issued in 2008, and adds 173 categories to the original list.
According to the “Provisions on Guiding Foreign Investment,” foreign-invested projects included in the Catalogue are entitled to the preferential policies granted for the foreign-invested projects under the encouraged category. The Catalogue is organized by province, covering 22 out of the 31 provincial-level administrative regions in Mainland China. Selected industries for each provincial-level region can be found below. Continue reading
Three-fourths of China’s provinces reported GDP figures over RMB1 trillion (US$163 billion) in 2012
By Yao Lu
May 16 – According to preliminary data released by China’s National Bureau of Statistics, the country’s economy expanded 7.8 percent in 2012 amid the sluggish global economy, reaching RMB51.9 trillion (US$8.45 trillion). The growth rate, although the slowest since 1999, still beats the government’s 7.5 percent growth target. In the fourth quarter of 2012, the country’s economic growth reached 7.9 percent, putting an end to seven consecutive quarters of slowdown, up from 7.4 percent in the third quarter and 7.6 percent in the second. Continue reading
By Eunice Ku and Shirley Zhang
May 15 – For foreigners doing business in China, tax is always a key concern. As a foreign business or individual, income derived from China may be subject to taxes in both your home country and China, which could substantially increase your tax burden.
Under China’s Corporate Income Tax (CIT) Law, a non-resident enterprise (i.e., an enterprise organized outside of China and whose effective management is not within China) without an establishment or venue in China is subject to CIT at a withholding rate of 10 percent on their China-sourced income, which includes:
- Income from property transfers;
- Income from equity investment such as dividends and bonuses;
- Income derived from interests, rentals and royalties;
- Income derived from donations; and
- Any other income. Continue reading
May 14 – China’s State Administration of Taxation (SAT) issued the “Announcement on the Individual Income Tax Declaration Form (Announcement  No.21, hereinafter referred to as the ‘Announcement’)” on May 9, which is scheduled to take effect on August 1, 2013. The Announcement has made revisions to the current individual income tax (IIT) declaration system in the following three areas:
- Strengthening tax information collection
- Streamlining declaration forms and simplifying declaration content
- Unifying standards regarding declared data Continue reading
May 13 – To further standardize and clarify the foreign exchange administration of foreign direct investment into China, the country’s State Administration of Foreign Exchange (SAFE) released the “Regulations on the Foreign Exchange Administration of Onshore Direct Investment by Foreign Investors (Huifa  No. 21, hereinafter referred to as ‘Circular 21’),” which came into effect on May 13, 2013.
The SAFE promulgated Huifa  No. 59 in November 2012, which simplified dramatically the foreign exchange administration procedures for inbound and outbound direct investment. On this basis, Circular 21 further simplified the foreign exchange administration procedures for FDI-related foreign exchange registration and settlements, account opening and usage, and fund remittances. Continue reading
May 13 – China Briefing, in cooperation with its parent company Dezan Shira & Associates, has just released the sixth edition of The China Tax Guide: Tax, Accounting & Audit. Taxation permeates business transactions in China, and a strong understanding of tax liabilities enables foreign investors to maximize the tax efficiency of their foreign investment while ensuring full compliance with all tax laws and regulations. This guide overviews taxes for businesses and individuals, and discusses accounting and audit in the China business context.
This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in China in order to effectively manage and strategically plan their China operations.