Legislation roundup: R&D expenses, foreign-funded banks and collective bargaining in Guangdong
October 25, 2013 | BY
clpstaff &clp articles &The SAT has released a Circular on pre-tax deductions for R&D expenses and the CBRC Measures for foreign-funded banks. Guangdong Province has released Regulations on collective bargaining
Taxation
State Administration of Taxation, Circular on Policy Issues Relevant to the Pre-tax Super-deduction of Research and Development Expenses
According to the Circular, corporate research and development expenses that fall within the scope of pre-tax super-deduction include: contributions made to insurance premiums, such as basic old-age insurance premiums and basic medical insurance premiums of employees directly engaged in research and development activities, expenses for the repair and maintenance of instruments and equipment used exclusively for research and development activities; clinical trial expenses for the research and manufacture of new pharmaceuticals; and expenses for the expert evaluation of research and development achievements.
See the full translation.
Further reading
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Banking
China Banking Regulatory Commission, Implementing Measures on the Administrative Permission Matters Relating to Foreign-funded Banks (Draft for Comments)
The Draft requires that proposed wholly foreign-owned banks and Sino-foreign equity joint venture banks have registered capital of at least Rmb1 billion. The foreign investor in a wholly foreign-owned bank or equity joint venture bank is required to have had assets of at least US$10 billion in the year prior to the submission of the application.
Furthermore, the Draft requires that a foreign bank that wishes to establish a branch should have had total assets of at least US$20 billion in the year prior to the submission of the application. Additionally, it is required to allocate to the branch working capital of at least Rmb200 million or the equivalent in a freely convertible currency.
See the digest for more details.
Further reading
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Guangdong
Guangdong Province, Regulations on the Collective Bargaining and Collective Contracts of Enterprises (Draft Amendments for Comments)
In general, collective wage bargaining is to take place once per year. During collective bargaining, the enterprise may not illegally amend or terminate the employment contracts of the employees, and the employees may not refuse to conduct collective bargaining with the enterprise or demand the amendment or termination of a still valid collective contract by stopping work or by engaging in a work slowdown.
See the digest for more details.
Further reading
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