Legal and Regulatory

China Announces Import Tax Treatment to ‘Encouraged’ Foreign-Invested Projects

Feb. 2 – In Announcement [2012] No. 4 released on January 29, the Chinese General Administration of Customs clarified the favorable import tax treatment to “encouraged” foreign-invested projects (FIPs).

Starting on January 30, FIPs (including capital increases to FIPs) listed in the “encouraged” category in the “Foreign Investment Industrial Guidance Catalog (2011 Version)” (“2011 FDI Catalog”) are exempt from customs duties when investors import equipment (for self use) and technology, accessories as well as spare parts that come along with the equipment based on related agreements. However, these importers are still subject to import value-added tax, which was resumed on such imports in 2009. Continue reading →

Shanghai Offers Fiscal Support to Promote VAT Reform

Jan. 30 – Shanghai’s newly included value-added tax (VAT) payers (pilot enterprises) may be able to receive fiscal compensation if they see increases in their actual tax burdens under the new tax scheme, local authorities said recently.

The focus of the ongoing VAT reform is to reduce duplicate taxation and extend supply chains that are eligible for VAT deductions, the local government emphasized. Continue reading →

Posted in Business, East China, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update | Tagged China VAT, Shanghai Fiscal Compensation to VAT Reform, Shanghai Pilot Taxpayers, Shanghai VAT Reform | Leave a comment

Transfers of Natural Resource Use Rights Subject to Business Tax

Jan. 23 – China’s State Administration of Taxation (SAT) recently clarified the tax treatment towards transfers of natural resource use rights.

According to the “Circular on Business Tax (BT) Policies on Natural Resource Use Right Transfers (caishui [2012] No.6)” issued on January 6, 2012, transfers of natural resource use rights – namely transfers of the rights to explore, exploit and employ natural resources – will be regarded as one type of intangible asset transfers. Continue reading →

Posted in Finance, Tax and Accounting, Legal and Regulatory, Oil & Petroleum, Regulatory Update | Tagged China Business Tax, China Intangible Asset Transfer, China Natural Resource Use Rights Transfer, China Natural Resources, China Tax | Leave a comment

Guangzhou Simplifies Electronic VAT Declaration Procedures

Jan. 19 – Guangzhou’s value-added tax (VAT) small-scale taxpayers are no longer required to submit paper declaration forms when they file electronic VAT declarations.

According to the “Announcement on Canceling Paper Declaration Form Submissions During Small-Scale Taxpayers’ Electronic VAT Declaration (Guangzhou SAT Announcement [2012] No.1),” starting on January 15, VAT small-scale taxpayers that pay VAT based on auditing results and file VAT declarations electronically are not required to submit paper declaration forms anymore. Continue reading →

Posted in Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update, South China | Tagged China Guangzhou VAT, China Tax, China Value Added Tax, China VAT Small-scale Taxpayer, Guangzhou, Online VAT Declaration, South China, Telephone VAT Declaration, VAT Declaration | Leave a comment

China Continues Offering Tax Incentives to Animation Industry

Jan. 19 – As part of its support for emerging cultural industries, China’s Ministry of Finance and State Administration of Taxation recently announced their intentions to continue the favorable value-added tax (VAT) and business tax (BT) treatment to the animation industry.

According to the “Circular on VAT and BT Policies that Support the Development of the Animation Industry (caishui [2011] No.119)” released on December 27, 2011, qualified animation developers can enjoy a VAT refund and a reduced BT rate. Continue reading →

Posted in Business, Culture and History, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update | Tagged China Animation Industry, China Animation Production, China Animation Software, China Business Tax, China Copyright Transfer, China Cultural Industries, China Tax, China Value Added Tax, China VAT Refund | Leave a comment

China Sets New Greenhouse Gas Emission Reduction Goals

By Vivian Ni

Jan. 18 – In its newest “12th Five-year Plan on Greenhouse Emission Control (guofa [2011] No. 41),” China has set its new goals of reducing carbon emissions in the next five years and called for pilot programs that aim to promote a low-carbon economy.

New goals
The newly released Plan aims to reduce China’s carbon intensity – the amount of carbon emitted per unit of GDP – by 17 percent by 2015, compared with 2010 levels. Energy consumption intensity by GDP will also be reduced by 16 percent during the same period. Continue reading →

Posted in Economy and Politics, Legal and Regulatory, Manufacturing, Regulatory Update, Science and Tech, Technology | Tagged Carbon Tax, China Carbon Dioxide Emission, China Carbon Emission, China Carbon Emission Right Exchange, China Carbon Trading, China Greenhouse Emission, China New Energy, China New-energy Vehicles, China Non-fossil Energy, EU Emission Trading System | Leave a comment

China Specifies VAT Treatment for Sale of Self-used Fixed Assets

Jan. 17 – When selling self-used fixed assets, certain general value-added tax (VAT) payers under specific circumstances can use the simplified method to calculate their VAT payment, says the State Administration of Taxation (SAT) on January 6.

According to the “Announcement on VAT Issues Concerning the Sale of Self-used Fixed Assets by VAT General Taxpayers (SAT Announcement [2012] No.1),” for a VAT general taxpayer which sells its self-used fixed assets and falls under two specific circumstances (listed below), VAT may be charged at the tax rate of 4 percent and then reduced by half using the simplified calculation method (which does not allow input VAT to be deducted from output VAT). The VAT general taxpayer shall not issue a VAT Special Invoice when this specific VAT charge takes place. Continue reading →

Posted in Business, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update | Tagged China Fixed Assets, China Tax, China Used Fixed Assets VAT, China Value Added Tax, China VAT General Taxpayer, State Administration of Taxation | Leave a comment

Shenzhen, Beijing Raise Minimum Wage Standards

Jan. 12 – On December 31, 2011, both Shenzhen and Beijing announced their new minimum wage standards for 2012. Following the adjustment, Shenzhen’s minimum wage standard will reach RMB1,500, the highest in the whole country.

Shenzhen
According to the “Circular on Minimum Wage Standards Adjustment in Shenzhen (shenrenshegui [2011] No.19),” starting on February 1, 2012, Shenzhen’s minimum wage standards will be raised as follows:

Continue reading →