Company News

In order to strengthen the integrity and maintain the order of the securities and futures market, as well as protect the legitimate rights and interests of investors, China’s Securities Regulatory Commission (CSRC) issued the “Interim Measures for the Supervision and Administration of Securities and Futures Market Credibility (CSRC Order No. 80, hereinafter referred to as ‘Measures’)” on July 25.

The Ministry of Finance and the State Administration of Taxation issued a notice interpreting provisions in the “Detailed Implementing Rules for the Interim Regulations of the People’s Republic of China on Consumption Tax (MOF Order No. 51, hereinafter referred to as the ‘Rules’)” on July 13.

The Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly released the “Notice on the Trial Implementation of the Ports of Departure Tax Refund Policy in Shanghai (caishui[2012] No.14, hereinafter referred to as ‘Notice’)” earlier this year, which came into effect on August 1, 2012. The Notice gives green light to Shanghai to pilot a system of tax refund at certain ports of departure (“tax refund pilot program”).

China’s Ministry of Industry and Information Technology (MIIT) issued the “Industrial Transfer Guidance Catalogue (2012 Version) (Announcement [2012] No.31, hereinafter referred to as the ‘Transfer Catalogue’)” on July 26. The Transfer Catalogue is promulgated for the purpose of promoting coordinated regional development, facilitating orderly industrial transfer, as well as resolving the various problems that have arisen in the process of industrial transfer, such as blind competition among the various regions and backward production capacities.

On August 4, 2012, the Shanghai and South China (located in Shenzhen) sub-commissions of China International Economic and Trade Arbitration Commission (CIETAC) issued a joint announcement declaring their independence from CIETAC. This move is in response to CIETAC headquarters’ announcement on August 1, 2012 revoking its authorization to the two sub-commissions for accepting and administering arbitration cases because they refused to apply CIETAC’s new arbitration rules. CIETAC also stated that parties that have agreed to arbitrate their disputes by the two sub-commissions should instead submit their applications for arbitration to the CIETAC headquarters.

Recently, China’s State Administration of Taxation (SAT) issued frequently asked questions relating to deed tax and value-added tax (VAT). The answers provided are based on existing regulations. They are as follows:

On June 21, the 8th National Assembly of the Socialist Republic of Vietnam approved Resolution No. 29/2012/QH13, aiming to introduce a number of tax policies in order to “resolve difficulties for organizations and individuals.”

On July 31, 2012, the Ministry of Finance and the State Administration of Taxation issued the “Notice on Commencing the Business Tax (BT) to Value-added Tax (VAT) Conversion Pilot Reform in the Transportation and Certain Modern Services Industries in Beijing and Seven Other Provinces and Municipalities (hereinafter referred to as the ‘Notice’)”.