Legislation roundup: NDRC measures, regional headquarters and Shanghai R&D rules
The NDRC has proposed raising the threshold at which foreign-invested projects need approval, while Shanghai has introduced a subsidy for multinationals that set up their headquarters in the city and awarded tax breaks for R&D work
Foreign-invested Projects
National Development and Reform Commission, Measures for the Administration of the Check and Approval of Foreign-invested Projects (Draft for Comments)
NDRC is proposing the raising of the threshold requiring check and approval for foreign-invested projects in the encouraged and permitted categories, from total investment amount of US$100 million to US$300 million. The threshold of total investment amount of US$50 million for foreign-invested projects in the restricted categories remains the same.
|Further reading:
Administration of the Verification of Foreign-invested Projects Tentative Procedures, Nov 2004
Progress or Setback? Looking at the New Approval Measures for Foreign Investment Projects, Nov 2004
Shanghai headquarters
Shanghai Municipality, Implementing Opinions on the «Shanghai Municipality, Provisions on Encouraging the Establishment of Regional Headquarters by Multinational Corporations»
If a Shanghai regional headquarters is upgraded to an Asian /Asia-Pacific headquarters, the number of personnel is not fewer than 50, and the legal representative and major senior management personnel handling headquarters duties are normally working in Shanghai, the headquarters may be awarded a one-off subsidy of Rmb3 million (US$470,000).
See the full translation.
Further reading:
Shanghai Municipality, Provisions on Encouraging the Establishment of Regional Headquarters by Multinational Corporations, Sep 2008
Where to set up a China headquarters, Nov 2009
Shanghai encourages regional headquarters, Sep 2008
Shanghai R&D centres
Shanghai Municipality, Several Opinions on Encouraging the Investment in and Establishment of Research and Development Centres by Foreign Investors
Qualified foreign-invested R&D centres in Shanghai may be exempted from import duties, import-stage value-added tax and consumption tax when importing items for R&D use. Qualified outbound software payments and technology transfers may also enjoy favourable tax treatment. Other favourable policies on foreign exchange control, customs clearance, immigration, introduction of skilled personnel and intellectual property are also offered in Shanghai to encourage the establishment of foreign-invested R&D centres.
|Further reading:
How to invest in R&D centres, Sep/Oct 2012
Circular on Questions Relating to Foreign Investors Investing in and Establishing Research and Development Centres, Jun 2000
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