Company News

China’s Ministry of Finance, State Administration of Taxation and Ministry of Commerce have jointly issued the “Notice on the Business Tax Exemption on the Offshore Outsourcing Business in Pilot Cities,” also known as Caishui [2010] No. 64 (Circular 64).

The Reserve Bank of India temporarily relaxed lending rules for bank loans to microfinance institutions, allowing banks to continue offering loans to the ailing sector.

Vietnam’s Ministry of Finance lowered import duties for petroleum products from January 14 onwards, according to the ministry’s web site.

Not long after the last minimum wage lift in May 2010, China’s Guangdong Province has once again decided to raise the minimum wage standards from March 1, 2011.

China and the United States announced a new public/private sector joint partnership yesterday focusing on the healthcare industry. The U.S. Trade and Development Agency, the U.S. Department of Health and Human Services and the U.S. Department of Commerce joined with China’s Ministries of Health and Commerce to announce their support for the establishment of the new organization.

China’s high-tech enterprises enjoying the country’s favorable taxation policies shall pay their annual corporate income tax (CIT) at a rate of 15 percent during the time their qualification validation is under review.

China recently announced that pure biodiesel can be exempted from consumption tax collection. The new regulation hopes to infuse more energy to China’s underdeveloped biodiesel market.

Individuals residing in China are subject to individual income tax (IIT). Expatriates who are employed in China are liable for IIT from either the first day they arrive in China or their first official working day. Be aware that the China Tax Bureau may take the arrival date as the trigger point for tax liabilities. They must file a monthly tax return as well as an additional annual return. Penalties for late filing can be up to five times the amount that was due.

Much hard work needs to be done with regards to annual compliance for joint ventures (JVs), wholly foreign owned enterprises (WFOEs) and foreign invested commercial enterprises (FICEs) operating in China.

Beginning January 1, 2011, several new rules have come into effect.

Minimum wage increase
Minimum wages at both local and foreign firms in Vietnam have increased by VND100,000 and VND370,000 per month, respectively.