Tag Archives: financial institution

How China Government Regulates Risk Prevention for Bitcoin Transaction？

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(By You Yunting)  The Circular on Issues Concerning Risks Prevention forBitcoinwas published on December 3rd in regards to regulating the bitcoin bubble, a virtual currency bubble, that has exploded in popularity in China and soared in value in recent months.The circular was issued jointly by People’s Bank of China, Ministry of Industry and Information Technology (the “MIIT”), China Banking Regulatory Commission (the “CBRC”), China Securities Regulatory Commission (the “CSRC”) and China Insurance Regulatory Commission (the “CIRC”), which states that Bitcoin has no legal status of monetary equivalent and must not circulate on the Chinese market.

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Is Apple Breaching China’s Foreign Exchange Management Rules in the App Store?

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(By You Yunting) In November of 2011, Apple Inc. began allowing its users in China to purchase app by RMB. At the time, the author believed that it means Apple would operate its AppStore in China. Yet unill now, the business concerning AppStore of Apple is still run by iTunes S.A.R.L.(the “iTunes”), the company registered in Luxembourg, a subsidiary of Apple Inc. Furthermore, according to the relevant International convention on transnational transaction, neither Apple nor iTunes is required to pay taxes for Chinese user’s purchase of the apps to the Chinese government. For Apple and iTunes, on one hand they take the payment in RMB, but on the other hand, they do not pay the taxes. This business model is achieved through the third party payment method. In this situation, the third party payment service provider would collect the payment from the Chinese users, and then transfer them to overseas. But this business model is at risk of violating the foreign currency control regulations of China. The following are the opinions of the author on this issue.

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New Chinese Laws & Regulations of October, 2011 (2)


To follow the regulations posted yesterday:

4. The Ministry of Finance and the State Administration of Taxation issued the Notice of the Value Added Tax (VAT) Policy for Software Product (hereinafter referred to the Notice)

On 13th October, 2011, the Ministry of Finance and the State Administration of Taxation jointly issued the Notice to further define the applicable scope, applicable conditions, and the calculation of the tax refund amount and other specific details of the preferential policy for the VAT of software product. The Notice clarifies that when the general taxpayers of VAT selling the software products developed and produced by themselves, the VAT shall be charged at the rate of 17%, while the amount exceeding 3% of the actual imposed VAT shall be refunded immediately. This policy will enter into force on 1st January, 2012.

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