Company News

Following the principles in the State Council document “Opinions on Further Improving the Work of Utilizing Foreign Investment,” China’s National Development and Reform Commission (NDRC) has recently added a number of changes to the “Foreign Investment Catalog.” The proposed changes are now open to public comment until the end of April.

According to a new announcement by the State Administration of Taxation (SAT) any taxpayer that sells its own products and provides construction services needs to provide a goods production certificate in order to avoid double taxation by the state and local tax authorities.

Decree No.25/2011/ND-CP of the government which was issued on April 6, 2011 provides enterprises, including domestic and foreign owned ones, some new regulations in the lucrative field of telecom.

India’s Department of Industrial Policy and Promotion has released the “Consolidated FDI Policy – Circular 1 of 2011,” that will allow 100 percent FDI in the development and production of seeds and planting material, floriculture, horticulture, and cultivation of vegetables and mushrooms under controlled conditions.

In an updated foreign direct investment policy, the government of India stated a simplification of joint venture norms and opened up new areas for overseas funds.

In the annual budget presented by the finance minister, branded garment companies can get the benefit of CENVAT (central and value added tax) credit. It means the garment companies will be taxed on inputs.

A decision concerning small and medium-sized enterprises’ (SMEs’) corporate income tax was published, and thereby become effective, on April 6, 2011. This decision from the Vietnamese prime minister allows SMEs to defer their CIT settlements of one year. This new incentive should help the SMEs to overcome their hardships and also stimulate economic development in 2011.

The new Hong Kong Arbitration Ordinance enacted in November last year will take effect on June 1, 2011, the Department of Justice announced.

China’s State Administration of Taxation (SAT) issued the “Announcement on Several Issues Concerning the Administration of Non-resident Enterprise Income Tax (EIT) (SAT Announcement [2011] No.24)” on March 28, 2011, clarifying non-resident enterprises’ tax liabilities on their China-derived incomes from security fees, financial leasing, property rentals, equity investments as well as equity transfers.

The double tax agreement (DTA) between China and Turkmenistan and its corresponding protocol came into force on May 30, 2010, the State Administration of Taxation (SAT) announced on January 30, 2011. The DTA will apply to taxes withheld at source from income derived on or after January 1, 2011, as well as other taxes collected in any taxable year starting January 1, 2011.