Company News

With the aim to promote the steady growth of foreign trade and expand domestic employment, China’s State Council released “Several Opinions of the General Office of the State Council on Promoting the Steady Growth of Foreign Trade (guobanfa [2012] No. 49, hereinafter referred to as ‘Opinions’) on September 16.

On May 22th, the Ministry of Finance granted Circular No.80/2012/TT-BTC regulating tax code registration under the Law on Tax Administration and replacing Circular No.85/2007/TT-BTC dated July 18, 2007.

The government of India has recently decided to permit foreign airlines to buy stakes of up to 49 percent in local carriers. This has been a highly anticipated policy move that provides for potential support to India’s debt-laden airlines by opening up a fresh source of funding.

Reporting of the annual accounts and balance sheet for the financial year ending March 2012 can now be made in Schedule VI format, bringing Indian companies on par with global reporting standards.

The Guangdong Provincial Office of the State Administration of Taxation (SAT) released the “Announcement on Launching the Pilot Collection of Value Added Tax (VAT) in lieu of Business Tax in Transportation and Certain Areas of Modern Services Industries in Guangdong Province (Announcement [2012] No.6, hereinafter referred to as ‘Announcement’)” on September 18, aiming to promote the smooth implementation of the pilot conversion.

The Guangdong Provincial Office of the State Administration of Taxation (SAT) released the “Circular on the Relevant Matters Concerning the Recognition of General VAT Taxpayers under the Business Tax to Value-Added Tax (VAT) Pilot Conversion in Guangdong Province (Announcement [2012] No.7, hereinafter referred to as ‘Circular’) on September 17, clarifying issues regarding general taxpayer recognition under its VAT pilot project.

The Beijing Municipal Finance Bureau, the Beijing Local Taxation Bureau and the Beijing Municipal Office of State Administration of Taxation jointly released the “Circular on Implementing the Transitional Financial Support Policies during the Business Tax to Value-Added Tax (VAT) Pilot Conversion Period (jingcaishui[2012] No.1294, hereinafter referred to as ‘Circular’)” on September 10.

The Beijing Municipal Office of the State Administration of Taxation (SAT) released the “Announcement on Matters Concerning the Administration of the Value-Added Tax(VAT) Preferential Policies during the Business Tax to VAT Pilot Conversion Period (Announcement [2012] No.8, hereafter referred to as ‘Announcement’)” on September 3, clarifying issues regarding the administration of related VAT preferential policies during the business tax to VAT pilot conversion period in the transportation industry and certain areas of the modern services industries.

To standardize the law enforcement of tax collection and ensure the thorough implementation of tax policies, China’s State Administration of Taxation (SAT) issued the “Notice on Implementing the Inspection over Tax Collection on Individual Businesses (hereinafter referred to as the ‘Notice’)” on September 3, aiming to crack down on the over-collection of tax nationwide.Key provisions of the Notice can be found below.

The Shenzhen Municipal Office of the State Administration of Taxation (SAT) issued the “Circular on the Relevant Matters Concerning the Recognition of General VAT Taxpayers under the Business Tax to Value-Added Tax Pilot Conversion (shenguoshuihan [2012] No.227, hereinafter referred to as ‘Circular’)” on September 4, 2012, clarifying issues regarding general taxpayer recognition under its value-added tax (VAT) pilot program. Key provisions of the Circular can be found below.