Nov. 27 – China and the European Union (EU) released the “China-EU 2020 Strategic Agenda for Cooperation (hereinafter referred to as the ‘Agenda’)” at the 16th China-EU Summit on November 21, which maps out strategic China-EU cooperation through 2020.
The Agenda is a milestone in the China-EU relationship as both sides have decided to combine their targets.
“The Agenda is unprecedented in its breadth of content, ranging from aerospace and counter-piracy to urbanization and energy,” said Chinese Premier Li Keqiang. Continue reading
Nov. 26 – Authorities from different departments of China have recently rolled out their respective plans for the highly-anticipated Shanghai Free Trade Zone (Shanghai FTZ). Included in this is the summary of the development plans and policies for the Shanghai FTZ. Continue reading
Nov. 25 – One of the key focal points mentioned in the “Decision on Major Issues Concerning Comprehensively Deepening Reforms (hereinafter referred to as the “Decision”)” is to deepen the reform of China’s fiscal and tax system. Recently passed during the Third Plenary Session of the 18th Central Committee of China’s Communist Party (Third Plenum), the Decision is considered the guideline for mapping out China’s economic policies in the coming years. Continue reading
Nov. 22 – China’s State Administration of Taxation (SAT) issued the “Announcement on Issues Concerning the Registration and Declaration of the Cultural Undertaking Development Fee under the Value-Added Tax to Business Tax Pilot Conversion (SAT Announcement  No. 64, hereinafter referred to as the ‘Announcement’)” on November 11, which clarifies the registration and declaration issues of the cultural undertaking development fee (CUD Fee) under the nationwide tax reform. Detailed information can be found below. Continue reading
Nov. 21 – The new issue of Asia Briefing Magazine, titled The 2014 Asia Tax Comparator, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of November and December.
The opportunities to sell to the Asian consumer have never been more pronounced than they are today, and those opportunities will continue to expand and develop over the next three decades. Key to understanding and accessing this massive, dynamic new consumer market is the ability to understand the underlying tax treatments. To that end, we are pleased to present our third annual “Asia Tax Comparator” as Asia Briefing Magazine’s final issue of 2013. Continue reading
Nov. 21 – China’s central government released the “Decision on Major Issues Concerning the Comprehensive Reform (hereinafter referred to as the ‘Decision’)” on November 17, which puts forward 60 detailed targets in the following 15 areas to promote the nationwide reform:
- Clarifying the significance and principles of the reform;
- Improving the basic economy system;
- Improving the modern market system;
- Transforming the government function;
- Deepening the fiscal and tax system reform;
- Improving the unified urban-rural development system;
- Establishing the “opening-up economy” system;
- Accelerating the construction of the socialist democratic political system;
- Promoting the construction of a “nation ruled by law”;
- Strengthening the power restriction and supervision system;
- Promoting the cultural innovation system;
- Promoting innovation in social service reform;
- Innovating the social administration system;
- Accelerating the construction of the ecological civilization system; and
- Deepening the national defense and military system reform. Continue reading
Nov. 20 – In the near future, many Chinese families will no longer be bound by the “One-Child Policy” that has been implemented in China for decades. According to the “Decision on Major Issues Concerning Comprehensively Deepening Reforms” passed during the Third Plenary Session of the 18th Central Committee of China’s Communist Party (“Third Plenum”), couples are eligible to have two children if at least one of the parents is an only child. The existing general policy currently only permits couples to have two children if both parents are only children. Continue reading
Average wages for 48 cities across China – from Guangzhou to Qingdao, Beijing to Luoyang
Nov. 19 – When determining social insurance contributions, there is a base figure for calculating the minimum and maximum contribution amounts for individuals whose salaries fall below or above certain thresholds. This base figure is derived from the average monthly wage of staff of the relevant city/province in the previous year, which is released around May to August each year.
As an example, in 2012, Beijing’s annual average salary was RMB62,677, with a monthly average salary of RMB5,223. In 2013, the cap for the social insurance base is three times the monthly average salary of 2012, i.e., RMB15,669. This gives a maximum contribution amount of RMB7,333 for the employer and RMB3,481.5 for the employee. For pension and unemployment insurances, the base figure for calculating the contributions is 40 percent of the 2012 monthly average salary (i.e., RMB2,089). Continue reading