Recently I suggested that someday it might be illegal for untrained citizens to invest in stocks of individual companies because it is too risky. As regular readers know, I sometimes throw out provocative ideas just for the fun of it. I didn’t think much about that idea until after I wrote it. But the more I mulled it over, the more it started to make sense. So I’m going to develop that argument here.
Read more…
Fees under technology licensing agreements, intellectual property (IP) right licensing agreement received from a source in the PRC by non-resident foreign corporations or individuals shall be subject to a 10% withholding income tax, a 5% business tax, and a stamp tax of 0.03% on the gross amount. The resident payer has the legal obligation to withhold the tax and pay it over to the tax office. Residents of non-PRC tax treaty countries will be subject to a 20% withholding income tax.
ASSIGMENT OF IP RIGHTS
Non-resident foreign investor receiving income for the Assignment of IP rights in the PRC will be subject to the following type of taxes: -
Type of tax Rate
Rental income from properties owned by non-resident foreign investors are subject to the following taxes: -
Type of tax Rate
Income tax 20% on rental income
Business tax 5% on rental income
City property tax 18% on rental income
Legal authority
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;
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.
RESTATED CERTIFICATE OF INCORPORATION
OF
AAA, INC.
(a _________(PLACENAME) Corporation)
The original Certificate of Incorporation of the corporation was filed with the Secretary of State of _________(PLACENAME) on _________(M,D,Y) and a restated Certificate of Incorporation was filed on _________(M,D,Y). The following Restated Certificate of Incorporation (the Restated Certificate) has been duly adopted by the Board of Directors and the Stockholders pursuant to Sections 242 and 245 of the _________(PLACENAME) General Corporation Law.
China shares fell in February with the H share and MSCI China indices down 3.3% and 1.7% respectively. Concerns that the central government may introduce measures to control speculation in the domestic stock market in anticipation of the annual National People’s Congress meeting triggered the selloff. China financials underperformed the market on profit taking and the People’s Bank Of China’s decision to absorb excess liquidity by increasing the reserve requirement ratio by 0.5% to 10% just before the week-long Chinese New Year holiday. Commodity stocks went up in February on global price rebound.Investors’ focus remained on the newly listed IPOs.
China’s government launched a slew of measures Wednesday to revitalize the sluggish property market, including cuts in business taxes for real estate sales and loosened mortgage policies for second-home buyers.
The State Council, or cabinet, said a sales tax on properties sold will be waived two years after purchase, compared with the previous term of five years. The tax will also be levied based on the profit from the sale instead of the sale price, according to the statement.
“This move, which helps to ease buyer’s economic burden, is expected to boost market vibrancy and may drag down the price of new residential buildings,” said Qin Xiaomei, research chief at CB Richard Ellis’s Beijing branch.
“However, it could also be a double-edged sword, partly encouraging investment-oriented purchase,” she added.
The floor area of residential properties sold in the first 11 months of the year fell 18.8 percent from a year earlier, while real estate investment growth slowed to 22.7 percent in January to November, down from 24.6 percent in the first 10 months.
Dropping transactions are squeezing an economy already hurt by the global turmoil, as the property sector is one of the biggest drivers of China’s domestic expansion, contributing a quarter of fixed-asset investment and employing 77 million people.
Therefore, experts say reviving the property sector is vital to the government’s efforts to counter the current downturn, which has worsened in the past month, with factory output falling to the slowest pace on record.
“The latest package will definitely help to boost market confidence, but we should not expect an instant rebound since the detailed regulations are still in the pipeline,” said Gu Wei, spokesman of Longfor Property.
“Furthermore, it is not easy to make such a big move, showing the government’s determination to reactivate the ailing property market,” he added.
The State Council said it will allow people to buy second homes on the same preferential terms normally reserved for those buying their first homes, such as lower down payment requirements and interest rates, so long as the floor space per person is lower than the local average.
“This long-anticipated relaxation really makes us excited and could help speed up the recovery of the market,” said a sales manger of Beijng Capital Land.
However, Zheng Fei, a 30-year-old company executive, said he will still take a wait-and-see attitude, betting the property price will still fall and the government may offer more favorable policies afterward.
The government also said it would support developers’ “reasonable” financing needs, and would increase credit help for construction especially of low-priced and small units, vowing to provide housing for 9.9 million low-income families in the next three years.
The People’s Bank of China, the central bank, said Wednesday that developers building low-rent housing could enjoy a 10 percent discount on lending rates, effective from January.
And the National Development and Reform Commission Wednesday also announced a 10 billion yuan subsidy on affordable housing.
Property sales in Beijing and Shanghai rose in November after being stagnant in the previous few months. Apartment sales climbed 52.4 percent in Beijing from October, while Shanghai grew 41.98 percent, official figures of the two cities showed.
According to statistics from the Beijing Municipal Construction Committee, 12,479 apartments, with a combined floor area of 1.19 million square meters, were sold in Beijing in November.
Figures from the China Real Estate Information Circle System (CRIC), a proprietary real estate database service from E-House (China) Holdings, showed that the total floor area of apartments sold in Shanghai in November 2008 rose to 708,500 square meters.
Despite the increase from last month, apartment sales in November haven’t brought much cheer to real estate developers and agents. “The increase of sales (in November) was from a low base in October when sales was dismal,” explained Meng Qi, senior analyst from Century 21 China Real Estate.
Recent Comments