Company News

The individual income tax (IIT) exemption threshold will remain unchanged for foreigners in China, despite an increase in the amount of the “necessary deduction,” according to the newly released revisions to the “Regulations for the Implementation of the IIT Law (State Council Decree [1994] No.142).”

China’s State Administration of Taxation (SAT) recently made an announcement, specifying the actual time when value-added tax (VAT) payment obligations take place for taxpayers who receive direct payment during production or operation.

The Shenzhen government issued public holiday arrangements for the 26th Summer Universiade (August 12-23, 2011), which applies to all governmental departments and institutions, schools and non-government organizations at Shenzhen.

China’s State Administration of Taxation (SAT) released an announcement (SAT Announcement [2011] No.34) on June 9 clarifying several corporate income tax (CIT) issues related to the deduction of distinct expenses from CIT calculation basis, calculation of fixed asset values, as well as depreciation after building replacement or expansion, and determination of income types after enterprises reduce or withdraw their investments.

Vietnam’s Ministry of Finance has issued Circular No. 91/2011/TT-BTC dated June 20, 2011, amending import tax rates for certain goods in the Preferential Import Tariff.

A recent announcement by the State Administration of Taxation clarified several corporate income tax (CIT) issues on the income enterprises receive through investments in government bonds. The document explained the CIT treatment towards the income from both state bond yields and transfers.

The U.S. Financial Crimes Enforcement Network (FinCIN), a bureau of the U.S. Treasury Department, issued an immediate release on July 18 announcing the availability of an electronic filing system that will accept Form TD F 90-22.1 – Report of Foreign Bank and Financial Accounts (FBAR).

The governments of the People’s Republic of China and the United Kingdom renewed their agreement for the avoidance of double taxation (new DTA) on June 27, updating the definition of a permanent establishment (PE) and revising withholding tax rates on dividends and royalties.

Last April, Vietnam’s Prime Minister executed a tax extension for small and medium-sized enterprises (SMEs) for 2010 corporate income taxes with the total amount of around VND7 trillion. The eligible enterprises for this incentive are about 200,000 of the total 360,000 small and medium enterprises currently operating in Vietnam.

MCA 21 payments can be done via credit card, internet banking and physical challan currently. Now, the ministry has recognized five banks (Indian Bank, HDFC, ICICI, PNB and SBI) for collection of MCA 21 fees, which means that only the account holders of these banks can avail Internet banking facility. Also, payment through challan can only be made in the authorized branches of these above five banks.