Legislation roundup: Outbound investment requirements, lease financing tax refund and construction law violations

Outbound

Ministry of Commerce, Measures for the Administration of Overseas Investment
商务部境外投资管理办法

The Measures abolish the check and approval requirements in respect of overseas investments above a certain amount and establishment of special purpose vehicles overseas. The Measures also shorten the time limit for check and approval by five working days. For check and approval for enterprises directly under the central government, decisions are to be rendered within 20 working days, and for local enterprises, decisions are to be rendered within 30 working days.

See the digest for more details.

Further reading
Opening the gates for outbound investment
How China's businesses can secure project bids


Financing

Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on the Launching of a Nationwide Pilot Project for a Policy of Refunding Taxes on the Export of Goods in Connection with Lease Financing
财政部 海关总署 国家税务总局关于在全国开展融资租赁货物出口退税政策试点的通知

A policy of refunding value-added tax and consumption tax on goods that actually leave the China after customs declaration that are leased by lease financing enterprises, lease financing companies and their project subsidiaries to lessees abroad for a term of at least five years will be implemented on a trial basis.

Further reading
Measures for the Administration of Lease Financing Companies
Opinion: Aircraft and ship lease financing opens up


Construction

Ministry of Housing and Urban-rural Development. Measures for the Administration of the Determination, Investigation and Handling of Violations of the Law, Such as the Transfer of Contracts and Illegal Subcontracting in Connection with Construction Project Works (Trial Implementation)
住房和城乡建设部建筑工程施工转包违法分包等违法行为认定查处管理办法（试行）

Illegal awarding of a contract shall be constituted where:

(1) the owner awards the contract for a project to an individual;
(2) the owner divides the construction of a unit work into several portions and awards contracts therefor to different general construction contractors or specialised contractors;
(3) the owner awards further contracts for a unit work or subdivisional works falling within the scope of the construction contract; and
(4) the owner breaches the construction contract by demanding by various means that the contractor select the subcontractors designated by it.

Further reading
Navigating the construction process
Opinion on Thoroughly Implementing the Policy Plan for Expanding Domestic Demand to Promote Economic Growth and Further Strengthening the Regulation of Invitation for and Submission of Bids for Construction Projects