Other Briefings
Shanghai Expats Now Eligible for Social Security and Pensions
SHANGHAI, Nov. 25 – Shanghai’s Human Resources and Social Security Bureau has announced rules to extend the city’s social security program to expatriate employees. The moves mean that expats will be able to claim for coverage for sick pay and work place injuries provided they pay into the system. Previously expatriate staff had to contribute […]
VAT Blow for Wigmakers
Nov. 25 – China’s State Administration of Tax has issued Circular Guoshuihan (2009) #625 clarifying that human hair is not considered an agricultural product and is therefore applicable to 17 percent VAT instead of a reduced rate 13 percent for agricultural products. Asian human hair is extensively used in the wig making industry for both […]
China Joint Ventures: Moving Contractual Liabilities Out of China
Part Six in our “Joint Ventures as a Strategic Investment” series By Chris Devonshire-Ellis and Richard Hoffmann NOv. 24 – In this concluding part of our series on China joint ventures we discuss alternatives to the legal pitfalls that can befall a joint venture domiciled in China. On the premise that an investor has read […]
Ministry of Finance Clarifies Tax Exemptions for NGOs
SHANGHAI, Nov. 20 -The Ministry of Finance has released two circulars clarifying the scope of tax-exempt income and tax-exemption identification for non-profit organizations (NGOs). On the circular on tax-exempt income, there are five types of income considered as tax-exempt income for NGOs including money donated by individuals, units, and government subsidies. In addition, companies that […]
New Standard for China Tax Invoices Being Introduced
Nov. 19 – China’s State Administration of Tax has issued Circular Guoshuifa (2009) #142 concerning the simplification and unification of general tax invoices. This has largely been issued to facilitate the introduction of computerized tax data. The circular states that tax invoices will be divided into three categories come January 1, 2011: the general computer […]
China Joint Ventures: Negotiating the Contract
Part Five in our “Joint Ventures as a Strategic Investment” series By Chris Devonshire-Ellis and Richard Hoffmann Nov. 18 – Joint ventures by their very nature are intensely idiosyncratic creatures, differing so much depending on circumstances that the area of contractual negotiations is really best dealt with professionally on a case by case basis. They […]
China Issues New Directives over Offshore Beneficial Ownership
Nov. 17 – The State Administration of Tax has issued new guidelines on the determination of the “beneficial owner” during the application of double tax treaties with China. According to Circular Guoshuifan (2009) 601, effective from October 27, 2009, any applicant who fails to substantiate that they are a beneficial owner will be denied treaty […]
Shanghai to Make Details of its Expense Budget Public
SHANGHAI, Nov. 13 – Following Guangdong Province’s move to make its government expense budget downloadable on its website, Shanghai is also releasing details of its expense budget to the public for the first time. The expense budget will include collection, distribution and application of special funds, administrative and institutional unit revenues, as well as welfare […]
