Legislation roundup: Venture capital, technology transfer tax and enterprise bonds

December 03, 2015 | BY

Katherine Jo

The SAT has streamlined tax accounting for VC investment and clarified tax deductibles for technology transfers, and the NDRC has simplified approvals for enterprise bond issuances

Tax

State Administration of Taxation, Announcement on Issues Relevant to Enterprise Income Tax on Legal Person Partners of Venture Capital Firms Organized as Limited Partnerships

国家税务总局关于有限合伙制创业投资企业法人合伙人企业所得税有关问题的公告

If a legal person partner invests in multiple qualified venture capital firms organized as limited partnerships, each of its deductible investment amounts and shares of taxable income may be calculated together.

Further reading

Circular on Issues Relevant to the Regulation of the Investment and Acquisition of Equity Stakes in Insurance Companies by Limited Equity Investment Partnerships

Circular on Issues Relevant to Delegation of the Examination and Approval Authority over Foreign Investments to Lower Levels

State Administration of Taxation, Announcement on Issues Relevant to Enterprise Income Tax on Technology Transfer Income Derived from Licensing

国家税务总局关于许可使用权技术转让所得企业所得税有关问题的公告

While tax-resident enterprises nationwide are now allowed to enjoy tax breaks for technology transfer income derived from transfer of non-exclusive licensing rights, such tax breaks do not cover technical consulting, services or training income that is not inseparable from the technology transfer project.

See the full translation.

Further reading

Circular on Expanding the Implementation of Relevant Pilot Tax Policies of National Innovation Demonstration Zones on a Nationwide Basis

PRC Enterprise Income Tax Law

Implementing Regulations for the PRC Enterprise Income Tax Law

Capital markets

General Office of the National Development and Reform Commission, Opinions on Simplifying the Review Reporting Procedure for Enterprise Bonds, Strengthening Risk Prevention and Reforming the Oversight Methods

国家发展改革委办公厅关于简化企业债券审报程序加强风险防范和改革监管方式的意见

The NDRC will appoint third party professional firms to conduct assessments of the completeness and compliance of bond reporting materials and will additionally simplify its internal review procedure. The period for forwarding from the provincial-level development and reform department to the NDRC's issuance of approval of bonds shall be completed within 30 working days.

Further reading

PRC Securities Law (Revised in 2014)

Circular on Matters Relevant to the Investment in Unsecured Enterprise Bonds by Insurance Institutions

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