By Christian Fleming and Shirley Zhang
May 28 – Development zones are not a Chinese creation, but China in particular has found tremendous success with this economic tool. Historically, the liberal business environment in these areas have allowed foreign enterprises to operate more comfortably in the Chinese business environment, sheltered from the bureaucracy and red tape that often characterizes the rest of the country while at the same time such businesses could benefit from preferential policies, greater resource availability, and prime locations within regional hubs of creativity and innovation. Continue reading
Posted in Automotive, Business, Central China, Chemical & Pharmaceutical, East China, Economy and Politics, FDI and Foreign Trade, Featured, Manufacturing, Markets, Northeast China, Shipping & Logistics, South China, Technology, West China
May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.
The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading
Jan. 29 – Shanghai’s acting mayor, Yang Xiong, has stated that the city wishes to create Mainland China’s first free trade zone in a three-year development project that will link and upgrade the city’s existing bonded facilities in Pudong.
The plan has apparently already been approved by the central government and was introduced at the Shanghai People’s Congress on Sunday. The zone will incorporate the Yangshan Deep Water Port, Pudong Airport and the Waigaiqiao Port in a trial run expected to be implemented from late this year. Plans to extend this further could be approved by 2017. Continue reading
Nov. 14 – Jiangsu’s Provincial Office of the State Administration of Taxation (SAT) released the “Circular on the Collective Acceptance of Taxpayers in the Pilot Collection of Value-Added Tax (VAT) in Lieu of Business Tax (suguoshuifa  No. 161, hereinafter referred to as the ‘Circular’)” on November 7, aiming to promote the smooth implementation of the VAT pilot collection in the province and effectively reduce the burdens of taxpayers. Continue reading
Oct. 23 – Jiangsu’s Provincial Office of the State Administration of Taxation (SAT) released the “Announcement on Operation Details of the Transitional Preferential Policies in the Pilot Collection of Value-Added Tax (VAT) in Lieu of Business Tax in Transportation and Certain Areas of Modern Service Industries (Announcement  No. 8, hereinafter referred to as the ‘Announcement’)” on October 15, which is retroactively effective from August 1, 2012. Key information taken from the Announcement can be found below. Continue reading
Aug. 27 – Jiangsu’s Provincial Office of the State Administration of Taxation recently released an announcement clarifying issues regarding general taxpayer recognition under the value-added tax (VAT) pilot program in Jiangsu Province. The “Announcement on the Relevant Matters Concerning the Recognition of General VAT Taxpayers under the Business Tax to Value-Added Tax Pilot Conversion in Jiangsu Province (Announcement  No.2, hereinafter referred to as ‘Announcement’)” was released on August 22, 2012, and is effective as of August 1, 2012. Continue reading
May 30 – In order to adjust to the economic development, rising CPI levels and changing dynamics of the current domestic job market, the Shanghai government issued the “Notice on the 2012 Guideline of Wage Increase for Shanghai Enterprises (hurenshezongfa  No. 31)” on May 21, specifying the government’s suggested 2012 wage increases for enterprises in Shanghai. Continue reading
Mar. 23 – Shanghai’s state and local tax bureaus have issued the “Trial Procedures on the Filing of the Allocation Proportion of Consolidated CIT Payments by Headquarters in Shanghai (huguoshuisuo  No. 10)” (“Trial Procedures”) on March 10, 2012. The Trial Procedures apply to headquarters in Shanghai that operate trans-regionally and pay CIT on a consolidated basis. It provides for the materials that these headquarters should submit for the filing of branches’ allocation proportion of CIT.
The Trial Procedures have been issued based on the “Interim Measures for the Administration of the Collection of Consolidated Payment of Corporate Income Tax (CIT) in Trans-Regional Operations (guoshuifa  No.28)” (“Interim Measures”) issued by the State Administration of Taxation on March 10, 2008. Continue reading