Tax invoices and VAT liability The general VAT payer in the retail sector must issue to consumers ordinary invoices.The invoiced value includes the amount of sales and VAT. But unlike the VAT special invoice, those two amounts are not separately shown in the ordinary invoice.Note that the use of ordinary tax invoices does not mean that the retailer has no output VAT liability. The two issues are independent from each other. For example, a large retailer is a general taxpayer but it is not allowed to issue VAT special invoices to the
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A summary on VAT export refund rules in China
The Chinese tax rules provide for three export refund methods: (i) the tax-exemptmethod,(ii) the pay-first-and-refund-later method, and (iii) the exempt-offset-refund method. The tax-exempt method has two variations: (a) the exporter has paid input VAT on the export goods, but the exporter is not entitled to any export refund; and (b)the exporter has not previously paid any input VAT on the export goods, and therefore the exporter is not entitled to export refund.Under the pay-first-and-refund-later method or the exempt-offset-refund method, the exporter has no tax burden if the refund rate is equal to the standard rate. The exporter has tax burden if the refund rate is less than the standard rate. The exporter will have a higher working capital requirement if the pay-first-and-refund-later is adopted. As from 1st January 2002, all production type enterprise shall use the exempt-offsetrefund method for export refund purposes. Commercial enterprises shall adopt the pay-first-and-refund-later method for export refund purposes.[I] Export exemption with no credit for input VAT paid
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The VAT paid for the purchase of export goods in the Chinese market, or for purchases used in the manufacture of export goods, can be refunded in whole or in part, given that the following requirements are satisfied:
1. The goods are subject to VAT or consumption taxes under the Chinese tax rules;
2. The nature of the export transaction must be treated as sales, not the disposal of fixed assets, in the books of accounts for the exporter;
3. The goods must have physically left the country (except for that shipped to export processing zones);
4. The exporter has to produce evidence showing that the foreign exchange verification procedure governing the export collections has been completed.
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The PRC law imposes control over the movements of funds under the capital account.RMB and foreign currency are not freely convertible in the absence of administrative approval by the State Administration of Foreign Exchange (the SAFE). The conversion of RMB to foreign currency for import payments under the current account is permitted subject to certain conditions to be met. The importing company
should file the records before importation and submit the required information after the importation to the local office of the SAFE. (Equally export collections must be brought back to China and cannot be kept outside China in the absence of approval
from the SAFE.)
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What are the provisions for working hours and rest days in China?
In Mainland China, the statutory working time is 8 hours a day, 40 hours a week, 5 working days a week, and 2 rest days a week. Regarding the statutory leave, the PRC Labor law provides that the employee shall have 1 day off on the new year’s day, 3 days off on the Chinese new year holidays, 1 day off on the international labor day, 2 days off on the national day. The Company should make arrangement for the employees to take leave on the statutory holidays and other rest days as prescribed under the law.
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Detailed Rules of the Ministry of Foreign Trade and Economic Co-operation for the Implementation of the Examination-Approval and Adminis-tration of the Resident Representative offices of Foreign Enterprises inChina
(Promulgated on February 13, 1995)
Whole document
Detailed Rules of the Ministry of Foreign Trade and Economic Cooperation
for the Implementation of the Examination-Approval and Administration
of the Resident Representative offices of Foreign Enterprises in China
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INTERNAL CONTROLS AND AUDIT RISK
Chapter 1 General provisions
Article 1
This standard is prepared in accordance with the General Independent Auditing Standard to establish standards for Certified Public Accountants （“CPAs”） on the study and evaluation of an entity’s internal controls in the audit of financial statements， to assess audit risk， to improve audit efficiency and to ensure a high standard of professional work.
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The CBRC: Total banking assets over RMB 60 trillion
According to CBRC statistics, as of end-2008, the total assets of the banking sector amounted to RMB 62.4trillion, an increase of 18.6% year-on-year. The assets of the large commercial banks stood at RMB 31.8 trillion, an increase of 13.7%; the assets of the joint-stock commercial banks stood at RMB 8.8trillion, an increase of 21.6%; the assets of city commercial banks were RMB 4.1trillion, an increase of 23.7%; the assets of other financial institutions reached RMB 17.6trillion, an increase of 25.8%.
During the same period, the total liabilities of the banking sector amounted to RMB 58.6 trillion, in increase of 18.2% year-on-year. The liabilities of the large commercial banks stood at RMB 29.9trillion, an increase of 13.0%; the liabilities of the joint-stock commercial banks stood at RMB 8.4trillion, an increase of 21.1%; the liabilities of the city commercial banks were RMB 3.9trillion, an increase of 22.6%; and the liabilities of other financial institutions reached RMB 16.5trillion, an increase of 26.1%.
Administration of Tax on Business Transactions Between Affiliated Enterprises Rules (Revised)
（Promulgated by the State Administration of Taxation on 22 October 2004 and effective as of date of promulgation.）
PART ONE
GENERAL PROVISIONS
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Market Risk Management of Commercial Banks Guidelines
（Promulgated by the China Banking Regulatory Commission on 29 December 2004 and effective as of 1 March 2005.）
PART ONE GENERAL PROVISIONS
Article 1 These Guidelines have been formulated in accordance with the PRC， Banking Regulation Law， the PRC， Commercial Banking Law and other relevant laws and administrative regulations in order to strengthen the management of market risks by commercial banks.
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