Laws and Regulations Update in January 2017

1.The State Council Issues the Administrative Rules on the Approval and Filing of Enterprise Investment Projects

On 14th December 2015 Li Keqiang, the Premier of the State Council signed an order of the State Council to promulgate the Rules on the Approval and Filing of Enterprise Investment Projects which will take effect from 1st February 2017. The Rules further standardize the government acts of approving and filing of enterprise investment projects.

(Source: Website of the Central Government)

http://www.gov.cn/zhengce/content/2016-12/14/content_5147959.htm

2.The General Office of the State Council Issues the Notice on Arrangements for Certain Holidays and Festivals in 2017

On 1st December 2016 the General Office of the State Council issued the Notice on Arrangements for Some Holidays and Festivals in 2017. The Notice sets out specific arrangements for statutory holidays in 2017 such as the New Year’s Day, Lunar New Year, Ching Ming Festival, Labour Day, Tuen Ng Festival, Mid-Autumn Festival and National Day.

(Source: Website of the Central Government)

http://www.gov.cn/zhengce/content/2016-12/01/content_5141603.htm

3.The State Administration for Industry and Commerce, the Ministry of Human Resources and Social Security and the Bureau of Statistics Issue the Notice on the Addition of Social Insurance Related and Statistical Information to the Annual Enterprise Report   

 On 23rd November 2016 the State Administration for Industry and Commerce, the Ministry of Human Resources and Social Security and the Bureau of Statistics issue a notice requiring that annual reports for 2016 and the following years to be filed by enterprises via the enterprise credit information publicity system contain the following information in addition to what is required by the Provisional Rules on Enterprise Information Publicity.

a.Social insurance related information: the type of insurance, the number of people insured, the payment base of the insurance premiums, the actual amount of the current payment, the accumulative amount owed. Enterprises are required to publicize the type of insurance and the number of people insured, but they are given the option of publicizing the payment base of the insurance premiums, the actual amount of the current payment, and the accumulative amount owed.

b.Statistical information relating to: main activities, female staff, shareholders (not applicable to branch companies), the uniform social credit code for the parent company of a branch company (only applicable to branch companies). Enterprises are required to publicize their main activities and the uniform social credit codes for their parent companies, but they are given the option of publicizing information about female staff and shareholders.

(Source: Website of the State Administration of Industry and Commerce)

http://www.saic.gov.cn/zwgk/zyfb/lhfw/lhfw/xxzx/201611/t20161123_172663.html

4.Minutes (on Civil Cases) of the Eighth National Meeting of Courts on the Trial of Civil and Commercial Cases        

On 30th November 2016 the Supreme People’s Court held the eighth national meeting of courts on the trial of civil and commercial cases in Beijing. The minutes of the meeting deal with what should be done about the trial on civil and commercial cases, how to deal with marital and family, real estate, property, labor dispute, construction and engineering contract cases, as well as processes of the trial of civil and commercial cases.

(Source: China Court)

http://www.chinacourt.org/article/detail/2016/11/id/2361616.shtml

5.China Securities Commission Promulgates the Rules on Administration of Subsidiaries of Fund Companies and the Provisional Rules on Risk Control Index for Subsidiaries of Fund Companies that Manage Assets for a Particular Group of Clients       

On 29th November 2016 the Securities Regulatory Commission promulgated the Rules on the Administration of Subsidiaries of Fund Companies and the Provisional Rules on Risk Control Index Management of Subsidiaries of Fund Companies that Manage Assets for a Particular Group of Clients.

The Rules on the Administration of Subsidiaries of Fund Companies focus on raising internal administration standards of the subsidiaries of fund companies, especially regarding the business scope, organizational structure, interest conflict control, etc. of the subsidiaries, in order to increase the capability of a parent company to control its subsidiaries, improve the internal control system of the subsidiaries and standardize the growth of the subsidiaries.

The Provisional Rules on Risk Control Index for Subsidiaries of Fund Companies that Manage Assets for a Particular Group of Clients contain a safe transitional plan that conforms to the principle of “controlling the amount in stock and restricting the increase”. According to this plan,

(i)new and old businesses are treated in different ways, in which the scale of all businesses that had existed by 1st January 2016 is not considered for calculation of venture capital provisions,

(ii)there is a 18-month transitional period for businesses to reach the standards which are set in a stepwise form according to points on a time line, and (iii) moderate support should be given for capital increase during the transitional period.

(Source: Website of China Securities Commission)

http://www.csrc.gov.cn/pub/zjhpublic/G00306201/201612/t20161202_307066.htm

http://www.csrc.gov.cn/pub/zjhpublic/G00306201/201612/t20161202_307067.htm

6.The State Administration of Taxation Issues the Notice on Enterprise Income Tax 

On 9th December 2016 the State Administration of Taxation issued the Notice on Enterprise Income Tax governing the calculation and payment of the enterprise income tax for 2016 and the following years.

The Notice clarifies the issues concerning deduction of accident insurance premiums from travel expenses incurred by enterprises before tax and calculation of income tax on assets transferred by enterprises.

(Source: Website of the State Administration of Taxation)

http://www.chinatax.gov.cn/n810341/n810755/c2410266/content.html

Lawyer Contacts

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

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