Category: News

Posted on

SAT simplifies procedure for unilateral APA

SAT simplifies procedure for unilateral APA

On 30 July 2021, the State Administration of Taxation (SAT) announced Notice [2021] No. 24, on “Matters Regarding Application of the Simplified Procedures for Unilateral Advance Pricing Arrangements”. This notice simplifies the negotiation and signing process between taxpayer and tax authority and specifies the time limit for application acceptance.

The simplified procedures now consist of only three phases comprised of 1) evaluation of application; 2) negotiation and signing; 3) monitoring and execution. The requirements for a pre-filing meeting, intention for an APA, and analyses and evaluation have been removed.

The simplified procedures set time limits for tax authorities on the acceptance of APA applications and on the negotiation and signing. Tax authorities must send a Notice on Tax Matters to the submitting enterprise within 90 days of receiving the APA application to inform the enterprise of whether or not the application has been accepted, and negotiation and signing must be completed within six months.

Posted on

SAFE requires banks in China to optimize FE procedure

SAFE requires banks in China to optimize FE procedure

China’s State Administration of Foreign Exchange (SAFE) has released new measures to optimize foreign exchange (forex) banking procedures. According to Hui-fa [2021] No. 13, SAFE requires all banks in China:

• To eliminate the banking review process in the case of current forex banking procedure; this includes payment of overseas education fees by Chinese nationals to an overseas education institution; receipt of overseas salary by Chinese nationals, and receipt of salary from employment in China by foreigners;

• To establish a green channel to deal with “specific/special” foreign exchange transactions by individuals upon checking that a transaction is legitimate;

• To adopt an application declaration form which requires the applicant to guarantee that the application for forex usage is based on valid and legitimate reasons. It holds the applicants legally liable for any untrue disclosure, malpractice or non-compliant acts. The application form can be found at the following link: http://www.safe.gov.cn/safe/2021/0402/18672.html

Posted on

China’s Latest Administrative Fee Cuts for Companies

China’s Latest Administrative Fee Cuts for Companies

China will introduce new administrative fee cuts including lowering industrial electricity costs by 5% and reducing the average telecommunications rates by 15% to help enterprises – particularly small and medium-sized enterprises, or those in manufacturing and common services industries. Companies are expected to save around RMB 310 billion (US$44 billion) over the course of this year.

Posted on

Corporate Income Tax Cut for Foreign Companies Investing in Western China

Corporate Income Tax Cut for Foreign Companies Investing in Western China

In an effort to encourage further foreign investment into its western regions, China is reducing the standard enterprise income tax rate of 25% to 15% for foreign companies willing to locate there. The tax relief policy will last three years.

The Ministry of Finance, the State Tax Administration and National Development and Reform Commission have jointly issued a circular regarding the preferential tax policy, which will apply in the provinces of Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Chongqing, as well as the autonomous regions of Inner Mongolia, Guangxi, Tibet, Ningxia Hui and Xinjiang.

The reduced rate will be effective from beginning of January 2021 to the end of December 2023.

Posted on

Employer Social Security Contributions Cut till end of 2020

Employer Social Security Contributions Cut till end of 2020

On 22 June 2020, the Ministry of Human Resources and State Administration of Taxation jointly issued Circular no. 49, according to which small and medium scale enterprises are exempted from the payment of employees’ pension fund, work-related injury fund and unemployment fund. Additionally, the employer’s contribution part from February to June 2020 is now extended to December 2020.

Posted on

PBOC Lowers Lending Rates Again

PBOC Lowers Lending Rates Again

As a result of the economic impact of the Covid-19 pandemic, China’s central bank, the People’s Bank of China, has decided to further lower the Lending Prime Rate (LPR) beginning on 20th April 2020. The new rate is 3.85% for 1-year LPR and 4.65% for LPR over 5 years. This is the second decrease in 2020 following the previous one announced on 20th January.

Posted on

Official National Holidays 2020

Official National Holidays 2020

China’s General Office of the State Council has released the “Notification of Holiday Arrangements in 2020” which lays out the official national holiday schedule for 2020 as follows:

Holiday Dates Days holiday Official Working days
Qing Ming – Tomb Sweeping Festival April 4 – 6 3 –
May Labour Day May 1 – 5 5 April 26 (Sunday) and May 9 (Saturday)
Dragon Boat Festival June 25 – 27 3 June 28 (Sunday)
October National Day October 1 – 8 8 September 27 (Sunday) and October 10 (Saturday)
Posted on

“Two Certificates in One” System

“Two Certificates in One” System

China’s Ministry of Commerce, General Administration of Customs and Council for the Promotion of International Trade have jointly issued a notice (no. 39) announcing that the foreign trade operators filing and enterprises of origin filing will be included into the “two certificates in one” system nationwide from October 15.

After the implementation of the “two certificates in one”, exporters can directly obtain the filing qualification of enterprises of origin after completing the registration of foreign trade operators, which means they can complete the filing at one time. Enterprises do not need to re-enter information and upload materials a second time, which will simplify the procedures, save cost and improve the efficiency.

Posted on

Shanghai Launches Single Window Service for Foreign Permits

Shanghai Launches Single Window Service for Foreign Permits

On 2nd December 2019 Shanghai Administration of Foreign Experts Affairs and Shanghai Science and Technology Commission of Shanghai Municipal Public Security Bureau (Municipal Foreign Experts Bureau) launched a new “single window” service for foreigners holding the category A work and residence permit. The single window is located in the foreigner certificate centre on the third floor of the Exit-Entry Administration Department of Shanghai Municipal Public Security Bureau at 1500 Minsheng Road, Pudong District, Shanghai.

After the approval by Shanghai Administration of Foreign Experts Affairs and the Exit and Entry Administration Bureau of Shanghai Municipal Public Security Bureau, foreigner applicants (Category A) can obtain work and residence permit in one place at the same time.