I.  The Standing Committee of the National People’s Congress Adopted the Decision on Amending the Labor Contact Law.

On December 28, 2013, the Standing Committee of the National People’s Congress adopted and issued the Decision on Amending the Labor Contact Law of the People’s Republic of China, which will take effect on July 1, 2013. Four articles were revised, all relating to labor dispatch. The changes include an increase in the minimum registered capital of labor dispatching companies and administrative licensing to initially engage in the labor dispatch business; emphasizing the dispatched worker’s right of “equal pay for equal work;” declaring labor dispatch is a supplementary arrangement of employment and limiting the usage of labor dispatch; and imposing more serious liabilities on labor dispatching companies and the companies receiving the dispatched workers.

(From the website of the National People’s Congress)

II. The Supreme People’s Court Issued a Judicial Interpretation Clarifying the Judicial Standards on Condemnation and Punishment of Malicious Delay of Payment. 

On January 23, 2013, the Supreme People’s Court issued the Judicial Interpretation on Several Issues on the Application of Law in Criminal Cases Regarding Refusal to Pay Labor Remuneration, which went into effect on the same day. The Judicial Interpretation aims to determine the scope of “labor remuneration;” the standards for “evading payment of labor remuneration by ways such as transferring assets, escaping, and hiding;” and the standards for “ relatively large amount” and “causing serious consequences.” Additionally, the Judicial Interpretation clarifies the circumstances for lenient punishment.

(From the website of the Supreme People’s Court)

III. The State Administration of Taxation Issued the Administrative Measures on Collection of Income Tax of Enterprises Operating Business across Different Regions and Paying Taxes on a Consolidated Basis.

Recently, the State Administration of Taxation wrote and issued the Administrative Measures on Collection of Income Tax of Enterprises Operating Business across Different Regions and Paying Taxes on a Consolidated Basis (the “Administrative Measures”) to strengthen the administration of tax collection. The previous Interim Measures and some related Notices were abolished with passage of the Administrative Measures. The Administrative Measures further clarify the right of examination of the competent tax authority in the place where the second-level branch is located. Therefore, it is expected that the tax administration in the place where the second-level branch is located will be more serious. Additionally, the method for handling the calculation of the enterprise income tax and some other older provisions were amended.

(From the website of the State Administration of Taxation)

IV. The Supreme People’s Court Issued the Regulations of the Supreme People’s Court on Several Issues Concerning Application Law in Civil Dispute Cases Regarding of the Right to Network Dissemination of Information.

Recently, the Supreme People’s Court issued the Regulations the Supreme People’s Court on Several Issues Concerning Application Law in Civil Dispute Cases Regarding of the Right to Network Dissemination of Information (the “Regulations”), which went into effect on January 1, 2013. The Regulations provide the judicial standards for the determination of liabilities borne by network service providers. The Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Cases Involving Copyright Disputes over Computer Networks (2006 Amendment) is abolished.

(From the website of the China Court)

V. The Supreme People’s Court Issued the Interpretation on Several Issues Concerning Law of the Application of Law for Foreign-Related Civil Relationships (I).

On January 7 2013, the Supreme People’s Court issued the Interpretation on Several Issues Concerning the Law of the Application of Law for Foreign-Related Civil Relationships (I) (the “Interpretation (I)”), which went into effect on the same day . The Interpretation (I) consists of twenty-one Articles and provides detailed interpretation of the Law of the Application of Law for Foreign-Related Civil Relationships.
(From the website of the Supreme People’s Court)

Quoted from DeBund Newsletter of February, 2013

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