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
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
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
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
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
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:
Jan. 11 – Following the promulgation of a national decree ordering foreign employees’ mandatory participation in China’s social insurance system, Beijing recently issued its own implementation details in a bid to strengthen the enforcement of the new policy.
On December 20, 2011, the Beijing Social Insurance Fund Management Center (BSIFMC) released the “Circular on Issues Concerning the Improvement of Participation in Social Insurance by Foreigners Employed in Beijing (the new Circular).” The document details issues related to foreigners’ social insurance registration, backdated premium payments, charges of late fees, and the participation of foreigners from those countries that have signed a bilateral or multilateral agreement on social insurance with China. Continue reading
Of interest to all foreign investors in China, this issue deals with handling your 2011 accounts, including annual compliance procedures, license renewals, and handling tax deductible expenses, corporate and individual income tax filings for 2011 income
Jan. 10 – The new issue of China Briefing Magazine, titled Annual Compliance for FIEs, is out now and immediately available as a complimentary PDF download on the Asia Briefing Bookstore.
In China, January and February bring New Year banquets, transportation chaos…and annual compliance procedures.
Prior to distributing and repatriating profits, foreign-invested enterprises (FIEs) must complete annual compliance, involving an audit, tax filing and inspection. These procedures are not only required by law (and completing them improperly could lead to fines), but are a good opportunity to conduct an internal financial health check.
In this magazine, we take you step-by-step through this process for representative offices, and for joint ventures, wholly-foreign owned enterprises, and foreign-invested commercial enterprises. Continue reading
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at china@dezshira.com, download our corporate brochure or visit at us www.dezshira.com
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