TAXATION ON REPRESNETATIVE OFFICES
A representative office (RO) achieves the purposes that a foreign investor could establish a PRC presence in a relatively short time period and that the foreign investor is not required to make any commitment to bring in capital either in cash or in kind. Furthermore, the fact that an RO’s approval certificate can be valid for a one-year period provides for an exit option for the foreign investor to test the water.
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Administration, Agreement, BUSINESS, china, Commitment, Economic, ENTERPRISE, financial, income, Introduction, Investmen, Investment, LEASE, Management, marke, PRC, Regulations, tax, Taxation
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The PRC Tax Levy and Administration Law and its Detailed Implementation Regulations
Tax registration
Every foreign investment enterprise (FIE) shall apply for a tax registration at both the national tax office and local tax office.
Types of tax registration:-
National income registration and local income tax registration. Both registrations are mandatory and the registration application must be submitted within 30 days of obtaining the business license from the local office of “State Administration of Industry and Commerce” at the city level or above;
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Administration, BUSINESS, china, ENTERPRISE, financial, income, Investmen, Investment, payment, policies, PRC, Property, Regulations, tax, taxes, VAT
To the people’s governments at the provincial level, the people’s governments of autonomous regions and municipalities directly under the State Council, the ministries, and the institutions directly under the State Council
The PRC Enterprise Income Tax Law (referred to as the “EIT Law” hereafter) and the Implementation Regulations of the PRC Enterprise Income Tax Law (referred to as the Implementation Regulations hereafter) will take effect on January 1, 2008. In accordance with Article 57 of the EIT Law, the State Council gives notice on the issues of grandfathering preferential policies under the EIT Law as below:
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Administration, BUSINESS, china, development, ENTERPRISE, finance, income, policies, PRC, Regulations, tax, Taxation
It has been a 13-year journey from the preliminary work in 1994 to the passing of thePRC Enterprise Income Tax Law (referred to as “the EIT Law” hereafter) on 16th March 2007, which marked the completion of the unification of two tax systems for domestically funded and foreign funded enterprises in China. It is a system innovation in the process of building socialism and a harmonized society within the country. To reap the benefits of the new tax system depends very much on its implementation in an effective manner. A few days ago, the State Council announced the long-awaited Implementation Regulations of the PRC EIT Law (referred to as “the Implementation Regulations” hereafter), which is to come into play with the implementation of the EIT Law.
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Administration, Agreement, Asia, bank, BUSINESS, china, consumption, Credit, development, Economic, ENTERPRISE, finance, income, Infrastructure, innovation, Investmen, Investment, Investors, Management, marke, payment, policies, PRC, Regulations, SAFE, Stock, tax, Taxation, taxes, TURNOVER TAX, UK, VAT
Enterprise Income Tax Law of the People’s Republic of China
Order of the President of the People’s Republic of China
(No. 63)
The Enterprise Income Tax Law of the People’s Republic of China, which was adopted at the 5th Session of the 10th National People’s Congress of the People’s Republic of China on March 16, 2007, is hereby promulgated and shall come into force as of January 1, 2008.
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Administration, BUSINESS, china, Credit, depreciation, developing, development, Economic, ENTERPRISE, Environment, finance, financial, foreign-funded enterprises, income, Infrastructure, Investigation, Investmen, Investment, Investors, LEASE, Management, Monetary, payment, policies, Property, Regulations, SAFE, settlement, tax, taxes
The first is to allow deduction of the input VAT for purchased fixed assets. Before the amendment, input VAT is not allowed to get deducted from the output VAT. The production type VAT system is adopted and that has increased the tax burden of the enterprise buying the machinery and equipment. To reduce the tax burden, the revised VAT regulations remove the practice of such non-deduction, and allow the taxpayer to deduct the input VAT for purchased fixed assets. That helps achieve the transformation of the production type VAT system to one of consumption type.
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Administration, amendment, BUSINESS, Businesses, china, consumption, ENTERPRISE, growth, payment, policies, Regulations, tax, taxes, VAT
A: The principles having been followed in the amended VAT regulations taking into consideration of the economic situation and the urgency of the transformation reform are as follows:
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Administration, amendment, Economic, Regulations, tax, VAT
According to the assessment by the U.S. National Bureau for Economic Research, the U.S. economy has already been under recession since December 2007, taking into consideration various economic data including employment, income and production. Tracing the performance of U.S. GDP, it is expected to continue declining in the fourth quarter, after falling by 0.5%(annualised) in the third quarter, in view of the further weakening of major economic indicators in recent months. Therefore, it is going to demonstrate two consecutive quarters’ GDP decline, fulfilling another definition of recession. The impact of the stimulus package amounted to USD100 billion through tax rebates implemented early this year by the Bush Administration has proved to be short-lived. The successive injection of liquidity to the banking system by the Federal Reserve and the launch of the USD700 billion Target Asset Relief Facility still cannot stop the economy from getting worse. As Obama is going assume U.S. presidency in early 2009, global attention would focus on how his administration tackle this economic crisis.
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