China Regulatory Brief: Adjusted Maternity Leave in Guangdong and Cancelled Consumer Tax for Cosmetic Products

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50 days added to maternity leave in Guangdong

On September 29, 2016, revisions to Guangdong’s regulations on population and family planning were adopted by the province’s People’s Congress Standing Committee at its 28th meeting. The new regulations adjust childbirth incentive leave from 30 days to 80. In addition to the statutory 98 day basic maternity leave, the incentive leave brings the total potential maternity leave up to 178 days. The new regulation also refines and clarifies policies for special circumstances such as re-marriage and ill or disabled children. These policies will be backdated for these special cases from January 1, 2016 until the enactment of the new regulation.

Shanghai to comprehensively implement the 5-in-1 business license system

The Shanghai Municipal Administration for Industry and Commerce has announced that the 5-in-1 business certificate registration system for enterprises and special farmers’ cooperatives has been comprehensively implemented across the city, beginning October 1. The new license integrates social insurance registration and the statistical registration certificate, and will be issued by the State Administration of Ministry and Commerce (SAIC) market supervision bureau bearing the uniform social credit code and original organization code. All certificates covered by the new license will no longer be issued separately. Further information on the new 5-in-1 business license can be found here.

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Consumer tax on ordinary cosmetics cancelled

The Ministry of Finance (MOF) and State Administration of Taxation (SAT) has issued a notice on Adjusting the Policy of Consumer Tax on Cosmetics (Cai Shui [2016] No.103), which cancels consumer tax on ordinary cosmetics and decorative cosmetics, and changes the tax item name of cosmetics where consumer tax is applicable to ‘high grade cosmetics’. The scope of collection has also been extended to include high grade cosmetics, decorative cosmetics, and skin care cosmetics, of which sales price after tax (excluding VAT) is RMB 10 per milligram, or RMB 15 per item during the production process. Their respective tax rates are now 15 percent. The new policy came into effect as of October 1, 2016.

Scope of investment projects subject to government approval further narrowed

On October 8, 2016, the standing committee of the State Council decided to take measures to expand opening up and creating a more favorable environment for foreign investors. This will be done by further narrowing the scope in which investment projects are subject to government approval, and also by simplifying the approval and administration process of foreign enterprises. The meeting also explored how approval powers according to the standards of the state can be delegated to provincial governments regarding foreign investment into container dock, inland river navigation, power generation hub, vehicle engine, and urban rapid rail transit projects. Furthermore, efforts will be made to open the healthcare, education, culture, and sports sectors to private investors.


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