China’s Latest Laws and Regulations in May 2013

I.  The State Administration of Foreign Exchange Has Issued various new regulations such as the Measures for the Administration of Foreign Exchange in Areas under Special Customs Supervision, Measures for the Administration of Registration of Foreign Debts and Measures for the Administration of Foreign Exchange of Direct Investment inside China by Foreign Investors.

In May 2013, the State Administration of Foreign Exchange issued a series of measures to regulate foreign exchange, including the Measures for the Administration of Foreign Exchange in Areas under Special Customs Supervision, Measures for the Administration of Registration of Foreign Debts, and Measures for the Administration of Foreign Exchange of Direct Investment within China by Foreign Investors. Meanwhile, the List of Regulations for the Administration of Foreign Exchange of Direct Investment within China to be Abolished and the Guidance of Operation of Business of Direct Investment within China were also issued at the same time. The new measures and regulations simplify and integrate the procedures related with foreign investment.

Additionally, the State Administration of Foreign Exchange has issued the Notice on Relevant Issues Concerning to Strengthening Administration of Inflow of Capital of Foreign Exchange which focuses on improving administration.

(From the website of the State Administration of Foreign Exchange)

II. The State Administration of Taxation Has Issued the Notice on Issues Concerning Value-added Tax Declaration by Head Offices and Branches Levied VAT in Lieu of Business Tax as Pilot Taxpayers.

Recently, the State Administration of Taxation has issued the Notice on Issues Concerning Value-added Tax Declaration by Head Offices and Branches Levied VAT in Lieu of Business Tax as Pilot Taxpayer and the revised Application Form of VAT Declaration (I) which specifically applies to the VAT general taxpayer in the pilot areas of levying VAT in lieu of business tax. This notice comes into effect on 1 June, 2013. Additionally, the State Administration of Taxation has released the interpretation of the notice on its website.

(From the website of the State Administration of Taxation)

III. The State Administration of Taxation Has Issued the Notice on Issues Concerning Individual Income Tax of Increasing Capital by Surplus Accumulation after Acquisition of Equities of an Enterprise by an Individual Investor.

Recently, the State Administration of Taxation has issued the Notice on Issues Concerning Individual Income Tax of Increased Capital by Surplus Accumulation after Acquisition of Equities of an Enterprise by an Individual Investor, to clarify the individual income tax issues for acquisition of shares of an enterprise by an individual investor, increased enterprise’s capital by the capital reserve, surplus reserves, undistributed profit and other surplus accumulation. This notice comes into effect 30 days after its issuance, and applies to tax related issues that are not yet processed. Meanwhile, the State Administration of Taxation has released the interpretation of this notice on its website.

(From the website of the State Administration of Taxation)

IV. The Ministry of Commerce Has Issued the List of Currently Effective Rules and the List of Currently Effective Regulatory Documents.

On 10 May, 2013, the Ministry of Commerce issued the List of Currently Effective Rules of the Ministry of Commerce and the List of Currently Effective Regulatory Documents of the Ministry of Commerce on its website.

The List of Currently Effective Rules of the Ministry of Commerce by 1 January, 2013(http://images.mofcom.gov.cn/jjhzj/201305/20130510151047721.xls)

The List of Currently Effective Regulatory Documents of the Ministry of Commerce by 1 January, 2013( http://images.mofcom.gov.cn/jjhzj/201305/20130510151047721.xls)

(From the website of the Ministry of Commerce)

V. The Ministry of Human Resources and Social Security Has Issued the Opinions on Several Issues Concerning the Implementation of Regulation on Work-Related Injury Insurance.

Recently, the Ministry of Human Resources and Social Security has issued the Opinions on Several Issues Concerning the Implementation of Regulations on Work-Related Injury Insurance, which regulate the common issues in practice such as recognition of work-related injury, treatment of work-related injury, and the procedure of confirmation of work-related injury.

(From the website of the Ministry of Human Resources and Social Security)

VI. The National Development and Reform Commission and the Ministry of Commerce Jointly Issued the Catalogue of Priority Industries for Foreign Investment in Central and Western China (2013 Revision).

On May 15, 2013, the National Development and Reform Commission and the Ministry of Commerce jointly issued the Catalogue of Priority Industries for Foreign Investment in Central and Western China (2013 Revision). This new catalogue encourages foreign investments in labor concentrated industries that satisfies environmental protection requirement in central and western China; promote resource conservation and comprehensive utilization; improve the growing service industry’s standard; to take full advantage of the specific resources, labor and resources in central and western China and transform the region’s abundance of resources into economic development advantages in the key industries. This new catalogue consists of five hundreds articles and will come into effect on June 10, 2013. The new catalogue includes amendments to some provisions regulated in the previous catalogues. For example, the industry of automotive whole car manufacturing which is not regulated as an encouraged industry in the Catalogue of Industries for Guiding Foreign Investment (2011 Revision), is now regulated as an encouraged industry for foreign investment in western China in the new catalogue. This is the third revision of the Catalogue of Priority Industries for Foreign Investment in Central and Western China since its first issuance in 2000.

(From the website of the National Development and Reform Commission)

VII. The Office of Legislative Affairs of the State Council Asks for Public Opinions for the Draft of Measures on the Administration of Entry and Exit of Foreigners.

Recently, the Office of Legislative Affairs of the State Council has issued the Draft of Measures on the Administration of Entry and Exit of Foreigners for public opinions. This draft regulates the classifications of ordinary visa; the conditions and procedures of issuing, extending, renewing and reissuing of ordinary visa; the procedures of issuing, extending, renewing and reissuing residence certificate for foreigners; the administration foreigner residences; and legal liabilities for any violations. The Public can submit their opinions via website, letter, email, etc., before June 3, 2013.

(From the website of the Office of Legislative Affairs of the State Council)

Quoted from DeBund Newsletter of June, 2013

Lawyer Contacts

You Yunting86-21-52134918  youyunting@debund.com/yytbest@gmail.com

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