I. The Ministry of Commerce Issued Opinions Concerning the 2013 Guide on Attracting Foreign Investment Jobs
On March 19, 2013, the Ministry of Commerce issued Opinions Concerning the 2013 Guide on Attracting Foreign Investment Work (“Opinions”), which emphasizes attracting foreign investment in the high value-added manufacturing industry, enhancing openness of the service industry to the outside world, and strengthening the important role of foreign investment in the introduction of technology and knowhow. The Opinions also promote advancement of foreign investment in eastern areas and bringing change to central western areas, as well as further improving the investment environment to protect the legal rights and interests of foreign invested enterprises and improving protection of intellectual property rights. The Ministry of Commerce concurrently released a report on the situation of foreign investment attraction in 2012.
(From the website of the Ministry of Commerce)
II. The State Administration of Taxation Issued the Notice on Relevant Issues Concerning the Pilot Program of Payment of VAT Rather than Enterprise Income Tax by Non-Residential Enterprises
On March 1, 2013, the State Administration of Taxation issued Notice clarifying that the pilot program of switching non-residential enterprises from business tax to VAT gains the income defined in the third paragraph of Article 3 of the Enterprise Income Tax Law. When planning to pay the enterprise income tax, it must pay the tax calculated based on the total amount of income excluding the VAT. Furthermore, the State Administration of Taxation explains and provides illustrations in the Notice.
(From the website of the State Administration of Taxation)
III. The China Securities of Regulatory Commission Issued the Measures for the Pilot Program on Securities Investment in China by RMB Qualified Foreign Institutional Investors and their implementing regulations
On March 6, 2013, the China Securities of Regulatory Commission publicly issued the Measures for the Pilot Program of Securities Investment in China by RMB Qualified Foreign Institutional Investors and their implementing regulations. Later, on March 21, the State Administration of Foreign Exchange issued corresponding regulations, the Notice on Issues Concerning the Pilot Program of Securities Investment in China by RMB Qualified Foreign Institutional Investors.
Different from qualified foreign institutional investors (QFII), RMB qualified foreign institutional investors (RQFII) are permitted to invest in domestic markets using RMB. The RQFII pilot program was launched in 2012 and is primarily aimed at the financial institutions with their place of registration and principal place of business in Hong Kong. According to the new regulations, the types of pilot institutions will be expanded, the limitation of investment scope will be loosened, and institutions will be allowed to independently select types of products based on the market conditions. Additionally, the revised regulation clarifies the RQFII investment scope and shareholding proportion.
(From the websites of the China Securities of Regulatory Commission and the State Administration of Foreign Exchange)
IV. The Ministry of Industry and Information Technology Issued the Implementation Plan for the Special Project on Supporting Small and Micro Enterprises.
On March 8, 2013, to implement the Opinions of the State Council to Further Support the Healthy Development of Small and Micro Enterprises, the Ministry of Industry and Information Technology issued the Implementation Plan for the Special Project on Supporting Small and Micro Enterprises. The main contents include a series of measures supporting innovative, entrepreneurial, and labor-intensive small and micro enterprises; quickening the establishment of service system for small and micro enterprises; further improving financing services; and promoting the reduction of the burden on enterprises.
(From the website of the Ministry of Industry and Information Technology)
V. The Ministry of Commerce and the Ministry of Environmental Protection Jointly Issued the Environmental Guidelines for Foreign Investment and Cooperation.
On February 28, 2013, the Ministry of Commerce and the Ministry of Environmental Protection jointly issued the Environmental Guidelines for Foreign Investment and Cooperation (“Environmental Guidelines”). The Environmental Guidelines consists of twenty-two articles that direct Chinese companies to further regulate their environmental behaviors in foreign investment and cooperation, promptly identify and guard against environmental risks, and actively perform environmental responsibilities. It is reported that currently most enterprises established by Chinese citizens outside of China have not set up environmental protection departments or specified personnel in the overseas branches or specific projects.
(From the website of the Ministry of Environmental Protection and the Media)
Quoted from DeBund Newsletter of April, 2013
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