Company News

With the view to facilitate foreign investment and standardize the administration of foreign exchange for foreign-invested partnership enterprises, China’s State Administration of Foreign Exchange (SAFE) released the “Circular on Issues Concerning the Administration of Foreign Exchange of Foreign-Invested Partnership Enterprises (huifa [2012] No. 58, hereinafter referred to as ‘Circular’)” on November 19, 2012.

China’s State Administration of Taxation (SAT) issued another set of frequently asked questions relating to tax payments on November 27, 2012. The answers provided are based on existing regulations. Detailed information can be found below.

According to the “Measures on the Relevant Treatment of Foreigners Holding Permanent Residence Permits in China (renshebufa [2012] No.53, hereafter referred to as the ‘Measures’)” jointly released by China’s Ministry of Human Resource and Social Security (MOHRSS), Ministry of Public Security (MPS) and 23 other ministries in October, foreigners in China with permanent residence permits shall pay taxes in accordance with Chinese laws.

China’s Ministry of Commerce (MoC) released the “Administrative Measures for Liquor Circulation (Revision – Draft for Comments) (hereinafter referred to as the ‘Draft’)” on November 14. The Draft is intended to strengthen the control and management of liquor circulation throughout the country. The collection of comments is conducted online, and will be closed on December 14, 2012.

With the recent issuance of the “Circular on Issues of Facilitating Visas and Residence Permits for Highly-Qualified Foreigners’ Entry into China (MHRSS Circular [2012] No. 57),” more attention has been drawn to the long-term plan of China to import talented experts from abroad. Currently, the plan that the Chinese government gives the most preferential treatment to is the Recruitment Program of Global Experts (also known as the “Thousand Talents Plan,” hereinafter referred to as the “Plan”), which was initiated by the General Office of the CPC Central Committee in December 2008.

The Shenzhen Municipal Financial Committee, Shenzhen Municipal Office of the SAT, and the Shenzhen Local Taxation Bureau jointly released the “Circular on the Transitional Financial Support Policies for Business Tax to Value-Added Tax (VAT) Pilot Conversion in Shenzhen Municipality (shencaifa [2012] No.41, hereinafter referred to as ‘Circular’)” on October 30, clarifying financial support issues regarding VAT reform in the city. The main content of the Circular can be found below.

For some time now, the over-regulated administrative approval system in China has led to unnecessary government intervention in the country’s economic development and resulted in both low market efficiency and bureaucratic corruption. In 2001, China began to reform its administrative approval system by reducing administrative examination and approval items with the aim of clearing systematic obstacles for its social and economic development and helping to curb corruption.

China’s Ministry of Human Resources and Social Security (MHRSS) and four other departments of the Chinese government jointly promulgated the “Circular on Issues of Facilitating Visas and Residence Permits for Highly-Qualified Foreigners’ Entry into China (MHRSS Circular [2012] No. 57, hereafter referred to as the ‘Circular’)” on September 28, 2012.

At a recent press conference held in Guangzhou, several frequently asked questions (FAQs) relating to the VAT reform in the city were answered by officials from relevant government departments. Details of the answers can be found below.

Jim Zimmerman, the China managing partner of U.S. law firm Sheppard Mullin, is a good friend of China Briefing and is also both the Chairman Emeritus of Amcham China and the author of the China Law Deskbook – considered by many to be the bible of China law. Jim has recently introduced a regular update service to the China Law Deskbook and has kindly given permission for China Briefing to host it here.