- Seven laws, including the Company Law, the Customs Law, etc. Are Amended
On 28 December 2013 the Standing Committee of the National People’s Congress adopted the Decisions on Amending Seven Laws of the People’s Republic of China, including the Marine Environment Protection Law, the Drug Control Law, the Metrology Law, the Fisheries Law, the Customs Law, the Law on Tobacco Monopoly and the Company Law.
The amendments to the Marine Environment Protection Law, the Drug Control Law, the Metrology Law, the Fisheries Law, the Customs Law, and the Law on Tobacco Monopoly entered into force upon promulgation and the amendments to the Company Law will be effective as of 1 March 2014.
According to the Decisions, the amendment to the Company Law focused on provisions relating to the paid-in registered capital, for example, those about the capital actually received, the amount of subscribed capital, etc.
2. Policies on Further Opening-Up of Value-Added Telecommunication Businesses in Shanghai Pilot Free Trade Zone jointly released by the Industry and Information Ministry and the People’s Government of Shanghai
On 6 January 2014 the new Policies on Further Opening-Up of Value-Added Telecommunication Businesses of Shanghai Pilot Free Trade Zone were jointly released by the Industry and Information Ministry and the People’s Government of Shanghai
According to the released policies, the following fields will be included in the opening-up:
An opening-up to the WTO: a pilot increase in the percentage of foreign invested shares in information service businesses limited to application stores and store-and-forward businesses to be over 50% will be permitted, which was not allowed to exceed 50% under the former opening-up agreement entered into with WTO.
Four pilot businesses will be newly opened up, including call center businesses, domestic multiparty communication services, internet connection businesses (provided for internet users), in which the percentage of foreign invested shares may exceed 50%, and domestic internet based virtual private network services, in which the percentage of foreign invested shares shall not exceed 50%.
The percentage of foreign invested shares in online data and transaction processing businesses (e-commerce under business class) shall not exceed 55%.
3. Two tax policies for enterprises released by the Ministry of Finance and the State Administration of Taxation
(1). Notification on Tax Policies Applying to Scientific and Technological Business Incubators
On 31 December 2013 the Notification on Tax Policies Applying to Scientific and Technological Business Incubators was jointly released by the Ministry of Finance and the State Administration of Taxation, containing the following tax policies for Scientific and technological business incubators, effective from 1 January 2013 to 31 December 2015. Property taxes and urban land use taxes shall be exempted on properties or land used by qualifying incubators or transferred free of charge or leased to other business incubators. Meanwhile, business incubators shall be exempt from business taxes on income from space or house rental or incubating services. Moreover, qualifying non-profit incubators are entitled to enterprise income tax breaks according to the Enterprise Income Tax Law and other regulations and policies.
The Notification also stipulates applicable conditions for incubators and business incubators.
(2). Notification on Tax Policies Applying to National Parks of Science and Technology Affiliated with Universities
On 31 December 2013 the Notification on Tax Policies Applying to National Parks of Science and Technology Affiliated with Universities was jointly released by the Ministry of Finance and the State Administration of Taxation, containing the following tax policies for National Parks of Science and Technology Affiliated with Universities, effective from 1 January 2013 to 31 December 2015. Property taxes and urban land use taxes shall be exempted on properties or land used by qualifying parks of science and technology or transferred free of charge or leased to business incubators. Meanwhile, parks of science and technology shall be exempt from business taxes on income from space or house rental or incubating services. Moreover, qualifying non-profit parks of science and technology are entitled to enterprise income tax breaks according to the Enterprise Income Tax Law and other regulations and policies.
The Notification also stipulates applicable conditions for parks of science and technology and business incubators.
4. Deed Tax Policies with Respect to Changes of Ownership of a House or Land between Spouses released by the Ministry of Finance and the State Administration of Taxation
As follows is the main body of the Notification on Deed Tax Policies with Respect to Changes of Ownership of a House or Land between Spouses released by the Ministry of Finance and the State Administration of Taxation on 31 December 2013.
During the period of existence of marriage relationship, deed taxes shall be exempted if ownership of a house or land is changed from sole ownership by one spouse to that by the other spouse or co-ownership by both spouses, from co-ownership by both spouses to sole ownership by one spouse, or from common co-ownership by both spouses to co-ownership by shares based on mutual agreement.
5. The Standing Committee of National Congress and the Ministry of Justice of the P.R.China Abolishes Rules and Normative Files Relating to Labor Camps
On 28 December 2013 the Decision on Abolishment of Rules on Education in Labor Camps was approved by the Standing Committee of the National People’s Congress. On the same day the Ministry of Justice released the Decisions on Abolishment of Regulations Relating to Education in Labor Camps and the Notification on Abolishment of Normative Documents Relating to Education in Labor Camps.
According to the aforementioned three files, a total of over 40 rules, regulations promulgated by ministries and normative files were abolished, including the Resolution on Approval by the Standing Committee of the National People’s Congress for Decisions on Issues about Education in Labor Camps Made by the State Council and the Decisions on Issues about Education in Labor Camps Made by the State Council. Since then, laws about education in labor camps have been completely abolished in China.
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