Company News

In order to avoid ambiguities surrounding the double taxation of individuals working between Mainland China and the special administrative regions of Hong Kong and Macau, the State Administration of Taxation (SAT) issued the “Notice on Questions Regarding Tax Arrangements of Individual Employees Working in Both Mainland China and Hong Kong or Macau (SAT Notice [2012] No.16, hereinafter referred as ‘Notice’)” in April, clarifying the calculation of individual income tax (IIT) for related personnel.

China’s Ministry of Human Resources and Social Security revealed the latest minimum wage levels across China in a press conference last month. The table below shows that most provinces and cities have set up minimum wage levels of more than RMB1,000.

At a conference with the China Certified Tax Agents Association, Deputy Director of the Department of Goods and Services Tax under the State Administration of Taxation, Long Yuehui, revealed that 10 cities and provinces have officially applied to participate in the value-added tax (VAT) reform pilot scheme so far, including Beijing, Chongqing, Shenzhen, Tianjin, Xiamen, Anhui Province, Fujian Province, Hainan Province, Hunan Province and Jiangsu Province.

The Huizhou government held a mobilization conference on May 17 to officially launch its enterprise registration and examination trial reform, which aims to “simplify what can be simplified; permit what can be permitted; accelerate what can be accelerated; and optimize what needs to be optimized.”

In order to improve the management of foreign-funded venture capital enterprises (VCs), China’s Ministry of Commerce (MOFCOM) issued the “Ministry of Commerce Circular on Improving the Administration of Record Filing for Foreign-funded Venture Capital Enterprises (shangzihan[2-12] No.269, hereinafter referred as the “Circular”)” on May 7, clarifying the filing procedures for foreign-funded VCs.

On May 14, officials from China’s State Administration of Taxation answered questions on several hot issues regarding ambiguities in tax payments, clarifying that individual income tax should be paid when an employee receives compensation for termination of their contract.

The Beijing Public Security Bureau announced the commencement of a three-month campaign beginning May 15 to “clean up” illegally entered/stayed/employed foreignersthrough its Sina Weibo account in an effort to establish a comprehensive mechanism for managing foreigners in China.

China’s State Oceanic Administration and the Standardization Administration of the People’s Republic of China jointly released “The 12th Five-Year Plan for the Standardization of Oceanic Affairs (hereinafter referred as the Plan)” to work out a set of standards on oceanic affairs covering ocean planning, ocean investigation, ocean energy utilization, and island development.

China’s Ministry of Finance, Administration for Industry and Commerce, Ministry of Commerce, State Administration of Foreign Exchange, and the China Securities Regulatory Commission jointly issued the “Scheme for Localized Transformation of Sino-foreign Cooperative Accounting Firms (hereinafter referred as the “Scheme”)” last Thursday.