Circular of the Ministry of Finance and the State Administration of Taxation on Stopping Carrying Out the Preferential Policy of Exempting the Income Tax of Interest and Rent Withdrew in Advance When the Enterprises Pay Principal and Interest and Rental Charge by Way of Handing over the Products
From September 1,2001 on, the companies and enterprises of our country that are provided the equipments and technology by the foreign enterprises pay principal and interest and rental charge by means of returning the products for sale or handing over the products. The enterprises also offset principal and interest by the cost of the assembling line labor for the
processing of the incoming materials. All the earnings from the interest and rent should be levied the business income tax following Article 19 of the Law of Income Tax of the People’s Republic of China on Enterprises with Foreign Investment and Foreign Enterprises and the relevant provisions. The provisions of Subparagraph 5 of Article 2 and the third Paragraph of Article 3 in the Interim Provisions of the Ministry of Finance on Reducing and Exempting the Income Tax of Interest Obtained in China By the Foreign Businessmen [CaiShuiZi(83) No.348] are stopped carrying out.
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Announcement of the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, State Economic and Trade Commission Concerning Adjusting the Standards of Evaluation of Enterprise Management
Announcement [2001] No.5 of the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation and the State Economic and Trade Commission
June 21, 2001
Upon deliberation, the evaluation standards for classified management of enterprises are hereby adjusted and proclaimed as follows:
1. The evaluation standards of enterprises of catalogue A provided in article six of Regulations on the Classified Management of Enterprises of the Customs of the People’s Republic of China “no records of smuggling and rule violating actions for two consecutive years” has been adjusted to “no records of smuggling and rule violating actions for six months in a row”. The stated “six months” refers to the six months prior to the date of evaluation enterprise management categories.
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Supplementary Circular of the State Administration of Taxation on the Technology Development Expenses of Enterprises with Foreign Investment to be Deducted from the Taxable Income
The State Administration of Taxation of the various provinces, autonomous regions, municipalities directly under the center government and municipalities separately listed on the State plan, the Administration of Local Taxation of ShenZhen city:
The relevant issues on how additional calculations and deductions of the expenses addressed in the “Circular of the State Administration of Taxation on Relevant Issues Concerning the Technology Development Expenses of Enterprises with Foreign Investment to be Deducted from the Taxable Income” (GuoShuiFa [1999] No. 173, hereinafter referred to as the “Circular”) shall be applied to the expenses arisen from the technology development which enterprises with foreign investment carried out themselves or by entrusting others, as well as from the technology development services they provide upon entrustment, are hereby further clarified as follows:
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Administration of the Interconnection of Public Telecommunications Networks Provisions
PART ONE GENERAL PROVISIONS
Article 1 These Provisions have been formulated pursuant to the PRC, Telecommunications Regulations, in order to safeguard the interests of the State and the lawful rights and interests of telecommunications subscribers and to ensure fair and effective competition among telecommunications carriers and timely and rational Interconnection between public telecommunications networks.
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Circular of the China Securities Regulatory Commission On Guarantee of Security Companies
All security regulatory offices, representative offices, special commissioner’s offices and all security companies:
The issues concerning guaranty of security companies are as follows, in a bid to standardize guarantee activities of security companies and forestall risks that may be caused by guarantee activities of security companies:
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Circular of the Ministry of Finance, the State Administration of Taxation Concerning Adjusting the Policies on Business Tax of Enterprises with Foreign Investment and Foreign Financial Enterprises
Finance departments (bureaus), local taxation bureaus, state taxation bureaus of Guangdong Province, Fujian Province, Hainan Province, Shanghai, and Jiangsu Province:
With a view to balancing the taxation among financial enterprises and to promoting fair competition, and upon the approval of the State Council, the business tax rate prescribed by the state shall be uniformly implemented with respect to all the financial enterprises with foreign investment and foreign financial enterprises newly set up within the economic zones (including the Pudong New Area of Shanghai and the Suzhou Industrial Park) from May 1, 2001. The preferential policies on business tax prescribed in Article 3 of the Circular of the State Council Concerning Relevant Issues on Adjusting Tax Policies of the Finance and Insurance Industries [GuoFa [1997] No.5] shall be stopped from implementation.
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Official Reply of the State Administration of Taxation on the Taxation Disposal of Enterprises with Foreign Investment whose Capital from the Foreign Party has not been Put into Place as Provided
GuoShuiHan [2001] No.289
April 17, 2001
Sichuan State Taxation Bureau:
Your Request for Instructions on the Proof of Disposal of Tax Issues in the Case of Chengdu EnWei (ChuanGuoShuiFa [2001] No.55) was received. Upon deliberation, the official reply is hereby given as follows:
Paragraph 2 of Article 4 of the Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures provides that “the proportion of the foreign party’s investment in an equity joint venture shall be, in general, not less than 25 percent of its registered capital”. Within the term of capital contribution stipulated in the relevant laws, regulations or the investment contracts, where foreign investor as taxpayer doesn’t meet the requirement of this paragraph, and the taxpayer doesn’t report his actual situation to the taxation authorities when going through the tax registration procedures in accordance with the Article 6 of the Implementing Rules of Law of the People’s Republic of China on the
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Circular of the Ministry of Finance and the State Administration of Taxation on Some Business Tax Issues for Foreign Enterprises and Foreign Individuals to Transfer Intangible Assets
The departments (bureaus) of finance and the local tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan:
After the issuance and execution of the Circular of the Ministry of Finance and State Administration of Taxation (”SAT”) on Relevant Taxation Issues on Carrying out and Ensuring the Implementation of the Decision of Central Committee of the Communist Party of China and the State Council on Strengthening Technical Innovation, Developing Hi-techs and Realizing Industrialization (CaiShuiZi [1999] No.273), some issues have been put forward in succession by various jurisdictions. In order to execute the Circular more conveniently, relevant business tax issues for foreign enterprises and foreign individuals to transfer technologies and other intangible assets from outside the mainland of China into China’s mainland are hereby clarified as follows:
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Circular of the State Administration of Foreign Exchange on the Execution of the Circular Concerning the Relevant Issues of Software Exports
The sub-administrations of the State Administration of Foreign Exchange; the departments of foreign exchange administration of Beijing and Chongqin; and the sub-administrations of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen:
In order to promote the software export enterprises to export their products and earn foreign exchange income, the relevant issues of the execution of item 7) of Article 1 of the Circular Concerning the Relevant Issues of Software Exports (WaiJingMaoJiFa [2000] No.680 ) (hereinafter referred to as the Circular) promulgated jointly by the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Information Industry, the State Administration of Taxation, the General Administration of Customs, the State Administration of Foreign Exchange and the State Administration of Statistics are hereby defined as follows:
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Circular of China Securities Regulatory Commission and the State Administration of Foreign Exchange on Issues Concerning Individual Domestic Residents’ Investment in Foreign Currency Stocks Listed in the Domestic Stock Markets
All the Securities Regulatory Offices, Sub-Offices, Representative Offices; all the branches, Beijing and Chongqing Departments of State Administration of Foreign Exchange (”SAFE”); Shanghai and Shenzhen Stock Exchanges; all the commercial banks, securities companies and investment trust companies:
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