Tag Archives: value added tax

China Laws and Regulations Update in December 2018

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1.Patent Agent Regulations

Promulgated by the State Council

Document number: No.706 State Council Order

Promulgation date: November 19th, 2018

Effective date: March 1st, 2019

The Regulations sets forth patent agent responsibilities for their signature, stating that patent agents should be responsible for patent cases they have signed to handle. In addition, it contains details of patent agent aid services and encourages patent agencies to provide aid services for small businesses and low-income people, advising on patent applications and their legal rights. (Source: Website of the State Council)

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China Laws and Regulations Update in August 2018

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1.Decision to Amend the Provisional Rules on Filings of Establishment and Change of Foreign Funded Enterprises

Promulgated by the Ministry of Commerce

File number: No.19 MOC Order in 2018

Promulgation date: 29 June 2018

Effective date: 30 June 2018

The Provisional Rules states that in order to establish a foreign funded enterprise or change a domestic enterprise into a foreign funded enterprise by merger, acquisition, absorption, combination, etc. by filing as required by the Provisional Rules, filings of establishment of the foreign-funded enterprise shall be submitted online during the establishment and change recordation processes of the administration of industry and commerce and the market supervision and regulation department and the recordation authority shall begin the recordation process upon and inform the investor of receipt of the filings transferred by the administration of industry and commerce and the market supervision and regulation department. If the foreign-funded enterprise or its investor delays in submitting or has a material omission in its filings, the commerce department should give an order to correct it within a limited period of time. A fine of less than RMB 30,000 should be payable for a failure to correct it as required or a serious misconduct. (Source: Website of the Ministry of Commerce)

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China’s Latest Laws and regulations in October 2013, Part II

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7. Circular by the General Office of the CPC Central Committee and the General Office of the State Council on Cessation of New Construction of Buildings, Halls and Chambers and Clearing Up Housing for Office Use of Party and Governmental Offices

 

Promulgated on July 23, 2013 by the General Office of the CPC Central Committee and the General Office of the State Council, the Circular on Cessation of New Construction of Buildings, Halls and Chambers and Clearing Up Housing for Office Use of Party and Governmental Offices was created in order to ensure the cessation in every aspect of the new construction of buildings, halls and chambers, and to regulate the management of housing for office use.

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China’s Latest Laws and Regulations: June 2013, Part I

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I. The State Administration of Taxation Issued a Notice Concerning Issues Related to Declaration of Tax Rebate (Exemption) for Exported Goods by Exporting Enterprises.

Recently, the State Administration of Taxation issued a Notice Concerning Issues Related to the Provision of Proceeds for Declaration of Tax Rebate (Exemption) of Exported Goods by Exporting Enterprises, which clarifies the policy for declaration of value-added tax rebate (exemption) of exported goods by exporting enterprises. The Notice will take into effect on August 1, 2013. At the same time, the State Administration of Taxation also announced the policy interpretation for the notice.

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China’s Latest Laws and Regulations in March 2013

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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.

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Bonded Import: What Drives Goods “One-Day-Trip” to Hong Kong?

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It’s said early in 1990’s, that the container truck drivers shuffling between mainland China and Hong Kong were in excess of 10 thousand. Their main duty is to transport the mainland manufactured components and parts to Hong Kong, yet with no dispatch in the terminal, they would immediately turn around and head back to the mainland for part assembly. That was called “goods one-day-trip to Hong Kong” by Ms. Wu Yi, the deputy Premier of China at that time.

So, what drives such trips which cost however much? First, to transport mainland manufactured components to Hong Kong could make Chinese factories enjoy the tax refund as introduced in the last issue; second, for the assembling in China, any components thereby imported is under a bond, which means no tariffs shall be first paid for that import. After the export of the assembled articles, such tariffs shall then be paid. In conclusion, with this processing trade mode, less raw material or components would be occupied and the company could run the business under a no tax status; the advantage hereby produced is outrageous. Then, what tariffs may be paid during the process?

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Latest Laws and Regulations of August 2012, I

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I. Eight Provinces Including Beijing will gradually Develop the Pilots to be Levied VAT Instead of Business Tax from 1st of August, 2012.

The Ministry of Finance and State Administration of Taxation jointly issued the Notice on Developing the Pilots to be Levied VAT Instead of Business Tax in Transportation Industry and Partly Modern Services Industry in 8 Provinces or Cities including Beijing (hereinafter referred to as the “Notice”) on 31st of July, 2012. According to the Notice, upon the approval of the State Council, the range of pilots is extended to Shanghai, Beijing, Tianjin, Jiangsu, Anhui, Zhejiang, Fujian, Hubei and Guangdong. The transition of such tax policy shall be completed before 1st of September, 2012 in Beijing, 1st of November, 2012 in Fujian and Guangdong and 1st of December, 2012 in Tianjin, Zhejiang and Hubei. The pilot plan is basically the same as that of Shanghai. On 10th of August, 2012, the State Administration of Taxation published the Announcement on Relevant Issues concerning Qualification Verification of a General VAT Taxpayer in 8 Provinces and Cities Including Beijing Developing Pilots to be Levied VAT Instead of Business Tax.

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Export Rebate: The Secret to the Cheaper Made-in-China Product Selling Outside China

It’s widely known that made-in-China products are selling at a cheaper price outside China, not only the OEM articles like Nike, but the China based Lenovo also follow that pricing. There are many reasons contributing to the different price, including pricing strategy, logistic cost, office rent, taxation and even the change or exchange rate. IN this essay, we prefer to discuss the cause of a cheaper price of the same article overseas from the aspect of tax rebate.

I. VAT rebated in export

To take the Nike shoes as the instance, when Nike plants export the shoes, China taxation authority will rebate the paid VAT occurred during the process of production and circulation before the export, and that’s called the “export tax rebate”. So, let’s first take a look at how many taxes shall be paid within Nike shoes’ manufacture and circulation before the export.

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Tax Preferential Policy in China’s Animation Industry

It is reported by SECURITIES DAILY (note: the link is in Chinese) that there will be adjustment on tax policy in China animation industry. In recent, China Ministry of Finance and the State Administration of Taxation jointly issued a new policy supporting the animation industry, which introduces the VAT and the preferential business tax. And less tax and taxation of the both VAT and business tax will be made hereby.

I. For the sales of the independently developed animation software by the company of the general tax payer itself, the VAT shall be levied at the rate of 17% first, and the exceeding 3% amount of the actual tax bearing will be refunded. That’s the so called levy-refund policy.

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Will International Software Company Benefit from China’s New VAT Policy?

— the interpretation on the preferential policy of value-added tax

Recently, the Notice on the Policy of Value-added Tax of Software Product (the “Policy”) was jointly issued by the Ministry of Finance and the State Administration of Taxation of P.R.C., which shall back cover any VAT after 2011.1.1. The stock market reacts positively to the new policy.

However, as far as Bridge IP Commentary knows，the Policy is just the continuation of the past regulations, which include the Policies for the Development of the Software & Integrated Circuit Industries issued in 2000 (the “Policy in 2000”) and the Notice of Policies for Further Development of the Software and Integrated Circuit Industries released in first half of 2011 (the “Notice”). Even so, the introduction of the Policy once again shows the ambition of China government to boost the software industry. And the following is the interpretation on the Policy from Bridge IP Commentary:

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