Company News

India’s Finance Minister Pranab Mukherjee has scotched media reports concerning the intentions of India’s new tax regulations, and has pulled back on GAAR (general anti-avoidance regulations) until April 2013.

China’s Ministry of Finance (MOF) and the State Administration of Taxation (SAT) jointly released the “Circular Regarding Pre-tax Deduction Policies on Advertising and Business Promotion Expenses (caishui[2012] No.28, hereinafter referred to as ‘Circular’)”on May 30, which is retroactively effective from January 1, 2011 and will remain in effect through December 31, 2015.

Hong Kong has recently passed legislation that will amend the maximum level of relevant income for compulsory Mandatory Provident Fund (MPF) contributions, effective from June 1, 2012, according to an announcement on the MPF Authority’s official website.

In order to regulate foreign labor service cooperation and legitimatize laborers’ rights, China’s State Council approved the “Administrative Regulations on Foreign Labor Service Cooperation ([2012] No. 620, hereinafter referred as the ‘Regulations’)” on May 16. The Regulations will come into effect on August 1, 2012.

To clarify issues that occur when foreign-trade enterprises apply for export tax refunds using special value-added tax (VAT) invoices which have been approved as input VAT creditable, the State Administration of Taxation (SAT) promulgated the “Announcement on Issues Concerning Applying for Export Rebates by Foreign Trade Enterprises Using Special Value-added Tax Invoice (SAT Announcement [2012] No. 22, hereinafter referred to as ‘Announcement’).”

China’s Ministry of Justice is coming under the spotlight as are the roles of foreign lawyers in China following a case involving PRC-educated and qualified lawyer Stanley Cha, formerly of King & Wood, The Lawyer magazine has reported.

China’s State Administration of Taxation (SAT) issued an Announcement on May 25 extending the time for which an enterprise engaged in foreign trade (“foreign-trade enterprise”) can apply for a certificate claiming input VAT credit.

In order to fully implement the “Regulation on Work-Related Injury Insurances (Order of the State Council No.586, hereinafter referred as the ‘Regulation’),” the Chinese government issued the “Notice on Issues Regarding Individual Income Tax for Compensations of Work-Related Injury Insurances (caishui[2012] No.40, hereinafter referred as the ‘Notice’)” on May 3, 2012 in accordance with the income tax exempt items in Article 4 of Individual Income Tax Law of the People’s Republic of China.

China’s State Administration of Taxation (SAT) recently issued the “Opinions on the Construction of the Administrative System of International Taxation (hereinafter referred as the ‘Opinion’),” specifying guidelines for service and management in such fields as anti-avoidance, taxation of non-residents, taxation issues facing Chinese enterprises investing abroad, and cooperation mechanisms for international taxation.

In order to adjust to the economic development, rising CPI levels and changing dynamics of the current domestic job market, the Shanghai government issued the “Notice on the 2012 Guideline of Wage Increase for Shanghai Enterprises (hurenshezongfa[2012] No. 31)” on May 21, specifying the government’s suggested 2012 wage increases for enterprises in Shanghai.