Tag Archives: foreign exchange

China Laws and Regulations Update in July 2018

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1.Circular on Promoting Economic Growth by Actively and Effectively Using Foreign Funds

Promulgated by the State Council

File number: No.19 issued by SC in 2018

Promulgation date: 15 June 2018

Effective date: 28 April 2018

The Circular states that the foreign funds “regulatory system” reform will continue. Provincial governments are responsible for approving and administering the incorporation and change of any foreign-funded company with a total investment of less than USD 1 billion in items on the negative list for admittance of foreign investment funds. Local governments are encouraged to attempt an intensive reform of the administrative permit system. Foreign-funded companies outside the negative list can complete the recordation and the AIC registration formalities through “one-stop” service. (Source: Website of the State Council)

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Chinese Latest Laws and Regulations of October 2012, I

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I. The State Council Issues the Sixth Batch of Items Requiring Administrative Approval to be Abolished and Adjusted.

On October 10, 2012, the State Council issued the Decision on the Sixth Batch of Items Requiring Administrative Approval to be Abolished and Adjusted (hereinafter referred to as the “Decision”), accordingly, 171 items are cancelled and 143 items are adjusted.

It shall be noted that the items abolished according to the Decision include the requirement of pre-approval for commercial service providers of Internet information to be listed in the domestic market, approval for contracted operation or entrusted operation of Sino-foreign contractual joint venture enterprises by foreign enterprises (including Hong Kong, Macau and Taiwan), approval for the establishment of certification consulting institutions and a series of items previously being regulated by the China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC), China Insurance Regulatory Commission (CIRC) and State administrative for Foreign Exchange.

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The Introduction on the Chinese Laws and Regulations concerning the Withholding Tax

Highlight: to introduce you the regulations concerning the withholding tax in China, including the scope and the calculation base of the tax.

Recently a reader consult our website for the relevant legal problems regarding the withholding tax in China. The withholding tax is a usually encountered question in foreign exchange payment for those foreign companies having cooperation with Chinese enterprises in intellectual property right. Ms. Chen Danhong, the attorney of our website replied the question as follows:

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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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