Laws and Regulations Update in March 2017

1.The National People’s Congress Votes to Adopt the General Principles of the Civil Law of the People’s Republic of China

On 15th March 2017 the National People’s Congress voted to adopt the General Principles of the Civil Law of the People’s Republic of China which will take effect on 1st October 2017.

The new General Principles of the Civil Law includes new provisions on inheritance rights of a fetus, boundaries of limitation on capacity for civil conduct, legal entities, statutes of limitations, etc.

(Source: Website of the National People’s Congress)

http://www.npc.gov.cn/npc/xinwen/2017-03/15/content_2018907.htm

2. The Standing Committee of the National People’s Congress Announces the Decision on Amending the Enterprise Income Tax Law of the People’s Republic of China

On 24th February 2017 the Standing Committee of the National People’s Congress announced the Decision on Amending the Enterprise Income Tax Law of the People’s Republic of China which took effect on the same date.

Article 9 of the amended law states that “the part of expenses spent by a business for non-profit purposes that amounts to 12% or less of annual profits can be deducted from the taxable amount of income, and the part of such expenses beyond 12% of the annual profits can be deducted from the taxable amount of income within three years after being carried forward as permitted”.

(Source: Website of the National People’s Congress)

http://www.npc.gov.cn/npc/xinwen/2017-02/24/content_2008091.htm

3. The State Administration of Foreign Exchange Issues the Circular Notice on Foreign Exchange Risk Management with Foreign Investors in the Interbank Bond Market

On 24th February 2017 the State Administration of Foreign Exchange issued the Circular Notice on Foreign Exchange Risk Management with Foreign Investors in the Interbank Bond Market which took effect on the same date.

According to the Circular Notice, foreign investors in the interbank bond market can buy derivative products at the exchange rate of RMB against a foreign currency from a recognized domestic financial institution.

(Source: Website of the State Administration of Foreign Exchange)

http://t.cn/R6YUVzT

4. The State Intellectual Property Office of China Announces the Decision on Amending the Several Provisions on Regulating Patent Application Activities

In order to take more intensive actions as a deterrent against abnormal patent applications, the State Intellectual Property Office of China amended the Several Provisions on Regulating Patent Application Activities on 28th February 2017. The amended Provisions took effect on 1st April 2017.

According to the amended Provisions, a person who has done something seriously wrong by filing a patent application in an abnormal way should make full payment for his/her patent without being allowed any deduction or underpayment and may be ineligible for any deduction of patent fees in the following five years.

(Source: Website of the State Intellectual Property Office of China)

http://www.sipo.gov.cn/zwgg/jl/201703/t20170302_1308619.html

5.The Supreme People’s Court Releases the Supplementary Provisions of the Official Clarification (II) of Several Issues on the Application of the Marriage Law of the People’s Republic of China                              

On 28th February 2017 the Supreme People’s Court released the Supplementary Provisions of the Official Clarification (II) of Several Issues on the Application of the Marriage Law of the People’s Republic of China.

The Supplementary Provisions adds Article 24.2 and Article 24.3 to specify that false debts and illegal debts arising from gambling, drug abuse and other criminal activities are not protected by laws.

(Source: Website of the Supreme People’s Court)

http://www.court.gov.cn/zixun-xiangqing-36972.html

6. The Asset Management Association of China Publishes the (Provisional) Private Fund Management Rules

The Asset Management Association of China published the (Provisional) Private Fund Management Rules on 28th February. According to the Rules, any private fund provider should have paid-in registered capital of 50,000,000 RMB with no serious criminal or misconduct record in recent three years. All professionals in the private fund sector should obtain professional qualifications within six months after they start working in this sector. Any registered private fund that has stopped doing business activities for consecutive six months should be canceled.

(Source: Website of the Asset Management Association of China)

http://www.amac.org.cn/xhdt/zxdt/391776.shtml

7. Shanghai Human Resources and Social Security Bureau Issues the Notice on Adjusting the Minimum Wage Standards in Shanghai

Shanghai Human Resources and Social Security Bureau issued the Notice on Adjusting the Minimum Wage Standards in Shanghai. According to the Circular Notice, the minimum monthly wage is increased from 2190 RMB to 2300 RMB with the minimum hourly wage increased from 19 RMB to 20 RMB.

(Source: Website of the Shanghai Human Resources and Social Security Bureau)

http://www.12333sh.gov.cn/201412333/xxgk/flfg/gfxwj/ldbc/gzzl/201704/t20170406_1253536.shtml

Lawyer Contacts

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

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