Company News

In a recent announcement, the State Administration of Taxation clarified issues regarding the refund of overpaid corporate income tax (CIT) to property developers prior to the developers’ deregistration. This CIT overpayment primarily comes from the prepayment of land appreciation tax (LAT).

Shanghai and Chongqing have introduced China’s first-ever property tax for second-home buyers, part of a series of government measures to curb soaring prices and real-estate speculation. The taxes target high-end newly purchased second homes and will require buyers to pay between 0.4 to 1.2 percent of the total property price. The taxes kick in with immediate effect from today (Friday, January 28, 2011).

The State Council approved measures to lower import duties on electrical products from 20 percent to 10 percent, with these measures effective from yesterday (January 27), the State Council Tariffs Commission has announced in a surprise move. Products with reduced import duties include computers and cameras, and has the effect of reducing, for example, duty tax on iPads from RMB1,000 (US$152) to RMB500 (US$76).

China’s Ministry of Finance, State Administration of Taxation and Ministry of Commerce have jointly issued the “Notice on the Business Tax Exemption on the Offshore Outsourcing Business in Pilot Cities,” also known as Caishui [2010] No. 64 (Circular 64).

The Reserve Bank of India temporarily relaxed lending rules for bank loans to microfinance institutions, allowing banks to continue offering loans to the ailing sector.

Vietnam’s Ministry of Finance lowered import duties for petroleum products from January 14 onwards, according to the ministry’s web site.

Not long after the last minimum wage lift in May 2010, China’s Guangdong Province has once again decided to raise the minimum wage standards from March 1, 2011.

China and the United States announced a new public/private sector joint partnership yesterday focusing on the healthcare industry. The U.S. Trade and Development Agency, the U.S. Department of Health and Human Services and the U.S. Department of Commerce joined with China’s Ministries of Health and Commerce to announce their support for the establishment of the new organization.

China’s high-tech enterprises enjoying the country’s favorable taxation policies shall pay their annual corporate income tax (CIT) at a rate of 15 percent during the time their qualification validation is under review.

China recently announced that pure biodiesel can be exempted from consumption tax collection. The new regulation hopes to infuse more energy to China’s underdeveloped biodiesel market.