Legislation roundup: Transfer pricing, projects and real estate FDI

September 25, 2015 | BY

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The SAT's new draft reflects its alignment with the BEPS Action Plan, the State Council has lowered minimum capital requirements for infrastructure projects and market access for foreign investors in real estate has been increased

Tax

State Administration of Taxation, Implementing Measures for Special Tax Adjustments (Draft for Comments)
国家税务总局特别纳税调整实施办法 (征求意见稿)


According to the Draft, transfer pricing methods include the comparable uncontrolled price method, resale price method, cost plus method, transactional net margin method, profit split method and other methods.

Further reading
Announcement on Enterprise Income Tax Issues Relevant to the Payment of Expenses by Enterprises to Overseas Affiliates
 PRC Enterprise Income Tax Law
Implementing Regulations for the PRC Enterprise Income Tax Law


Investment

State Council, Circular on Revising and Improving the Capital System for Fixed Asset Investment Projects
国务院关于调整和完善固定资产投资项目资本金制度的通知

The minimum capital percentage for urban rail transport projects is revised from 25% to 20%, port and airport projects from 30% to 25% and railway and highway projects from 25% to 20%.

See the full translation.

Further reading
Plan for Reforming the Registered Capital Registration System
PRC Company Law (2013 Revision)


Ministry of Housing and Urban-rural Development and Four Other Ministries and Commissions, Circular on Revising Relevant Policy on the Entry of Foreign Investment into the Real Property Market and the Administration Thereof
住房和城乡建设部等五部委关于调整房地产市场外资准入和管理有关政策的通知

The minimum registered capital requirement of 50% of the total investment on foreign-invested real property enterprises investing US$10 million or more has been removed. The one-year residence restriction on the purchase of commercial residential premises for own residence by foreign individuals who work or study in China is also lifted.

Further reading
Sino-foreign Equity Joint Ventures Ratio of Registered Capital to Total Investment Tentative Provisions
Opinions on Regulating the Entry of Foreign Investment into the Real Property Market and the Administration Thereof

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