Company News

The Ministry of Commerce (MOFCOM) issued the Interim Provisions of the Ministry of Commerce on Issues Related to the Implementation of the Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (“Interim Provisions”), which took effect on March 5, 2011 and will remain valid until August 31, 2011.

The Ministry of Finance held a conference in Ho Chi Minh City to support Korean businesses relating to problems with taxes and customs procedures during their business in Vietnam. The Korean business groups now have the opportunity to solve their problems with tax and custom procedures with the Vietnamese authorities.

The Indian government has decided to raise the limit of external commercial borrowings to US$30 billion from the current US$20billion while, in another decision, the government has decided not to raise the foreign investor’s limits in government bonds.

India signed a double taxation avoidance agreement (DTAA) with the Federal Democratic Republic of Ethiopia on May 25, 2011 for the prevention of double taxation and fiscal evasion with respect to taxes on income.

The Ministry of Corporate Affairs in India has issued a new circular kick starting the “Green Initiative in Corporate Governance” by allowing companies to complete electronic, paperless compliance after considering relevant sections of the Information Technology Act (2000) and the Companies Act (1956).

In order to support foreign direct investment into India, the RBI has loosened up the rules and now permits foreign investors to raise funds by pledging shares of Indian companies to banks without its authorization.

The Reserve Bank of India (RBI) has allowed AD Category – I Banks (AD Banks) to permit assurance of shares of an Indian company seized by non-residents subject to under the following situation:

On June 10, 2011, China’s Ministry of Human Resources and Social Security released two measures to the public for solicitation of opinions. The two draft measures were formulated based on the Social Insurance Law, which is set to take effect on July 1, 2011. The respective draft measures are discussed here.

The Hong Kong Legislative Council passed the Inland Revenue (Amendment) (No.3) Bill on June 8, confirming that individual taxpayers in Hong Kong will see a 75 percent deduction in salaries tax and tax under personal assessment payable for the year of assessment 2010/2011. The total reduction of each case will be subject to HK$6,000.

On May 31, 2011, the Ministry of Finance and the State Administration of Taxation jointly issued the Circular on the Applicable Tax Rate and the Tax Deduction and Exemption for the Offshore Income of High and New Technology Enterprises (Caishui [2011] No. 47).