1.The Foreign Investment Law of the People’s Republic of China
Co-promulgated by the National People’s Congress
Promulgation date: 15 March 2019
Implementation date: 1 January 2020
This law will replace the Sino-Foreign Joint Venture Law, Foreign Funded Enterprise Law and Sino-Foreign Business Cooperation Law to be the legal basis for foreign investment in China. According to this law, organizational forms and structures of foreign funded businesses and their course of action should be governed by the Company Law, the Partnership Law and relevant laws, provided that foreign funded businesses set up before the implementation of this law may continue existing in their original organizational form. Foreign investment means direct or indirect investment made in China by natural people, businesses or other organizations in foreign countries, including establishment of a new business, merger and acquisition, creation of a new project and other forms of investment; Capital contributions, profits, capital gains, earnings relating to assets disposal, royalties from licensed use of intellectual property rights, legal redress or compensation, earnings relating to liquidation, etc. can be transferred in RMB into China or transferred in foreign currency out of China. The Chinese government protects intellectual property rights of foreign investors and foreign funded businesses and legal interests of people owning or relating to these intellectual property rights. The Chinese government implements the pre-establishment national treatment and negative list system for foreign investments and follows the principle of treating foreign and domestic investors equally when supervising and administering foreign investments. Foreign investments that will or may affect the national security will be inspected. (Source: Website of the National People’s Congress)
http://www.npc.gov.cn/npc/xinwen/2019-03/15/content_2083532.htm
2.Announcement on Calculation of Days Individuals with No Domicile in China Live in China
Promulgated by the Ministry of Finance and the State Administration of Taxation
Document number: No.34 Announcement of the State Administration of Taxation in 2019
Promulgation date: 14 March 2019
Implementation date: 1 January 2019
The Announcement states that an individual with no domicile who has lived in China for 183 or more days altogether in a taxable year, had lived for 183 or more days altogether in each of the previous six years and has never left China for 30 or more days at a time in any year should pay individual income tax on money earned in China and other countries in the taxable year. (Source: Website of the State Administration of Taxation)
http://www.chinatax.gov.cn/n810341/n810755/c4148981/content.html
3.Announcement on the Individual Income Tax Policy for Non-Residents and Residents with No Domicile
Promulgated by the Ministry of Finance and the State Administration of Taxation
Document number: No.35 Announcement of the State Administration of Taxation in 2019
Promulgation date: 14 March 2019
The Announcement states that wages and salaries paid to individuals for their work in China (“Country”) are wages and salaries sourced from the Country. Individuals with no domicile hold posts in foreign and domestic companies in the same period of time or hold a post in a foreign organization and work for foreign and domestic organizations in the same period of time, the amount of their wages and salaries in or outside the Country should be calculated on the basis of the number of days they have worked in or outside the Country in proportion to the number of calendar days in the same period of time. The place where bonuses or incentive equity of individuals with no domicile are sourced is also decided in this way. (Source: Website of the State Administration of Taxation)
http://www.chinatax.gov.cn/n810341/n810755/c4149634/content.html
4.Circular Notice on Issuing the Regulations of Centralized Cross-Border Capital Operation of Multinational Companies
Promulgated by the State Administration of Foreign Exchange
Document number: H.F.(2019) No.7
Promulgation date: 18 March 2019
The main contents of the Circular Notice are about a simplified registration system for foreign debts and loans. in which foreign debts and loans under centralized cross-border capital operation can be ”registered at the same time”; multinational companies can use and pay with foreign currency earnings from capital projects kept in their main domestic capital account, without needing to provide in advance the bank involved with proof of their authenticity every time; multinational companies can do centralized cross-border capital operation activities based on their main domestic capital account accepting more than one type of currency (including RMB) with no restrictions on the type of currency and the number of accounts. (Source: Website of the State Administration of Foreign Exchange)
http://www.safe.gov.cn/safe/2019/0318/12717.html
5.Announcement on Not Issuing the Generalized System of Preferences Certificate of Origin for Goods Shipped to Japan
Promulgated by the General Administration of Customs
Document number: No.48 Announcement of the General Administration of Customs in 2019
Promulgation date: 22 March 2019
Implementation date: 1 April 2019
The Announcement states that according to a bulletin of the Japanese Embassy in China, the Japanese Ministry of Finance no longer issues the generalized system of preferences certificate of origin for goods shipped from China to Japan from April 1, 2019. Accordingly, the Chinese customs no longer issues the generalized system of preferences certificate of origin and relevant Japanese materials import and processing certificate for goods shipped to Japan from April 1, 2019. Shippers of goods to Japan that need the certificate of origin can apply for non-preferences certificate of origin. (Source: Website of the General Administration of Customs)
http://www.customs.gov.cn/customs/302249/302266/302269/2351917/index.html
6.Regulations (III) on Several Issues Concerning the Application of the Enterprise Bankruptcy Law of the People’s Republic of China
Promulgated by the Supreme People’s Court
Document number: L.I.(2019) No.3
Promulgation date: 27 March 2019
Implementation date: 28 March 2019
This Regulations clarifies issues of the order of precedence for repayment of loans after the bankruptcy application is accepted, each creditor’s right to be informed, the voting system at creditors’ meetings, the manager’s authority to dispose of creditors’ major property and relevant procedures, etc. in order to protect legal rights of parties involved such as creditors in the bankruptcy process, encourage financial support for creditors’ business to continue running and maintaining and increasing the value of creditors’ property. (Source: Website of the Supreme People’s Court)
http://www.court.gov.cn/fabu-xiangqing-148662.html
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