Legislation roundup: VAT, insurance investment and customs
September 01, 2016 | BY
Katherine Jo &clp articles &The SAT has clarified VAT will not be levied on purely offshore activities, the CIRC has proposed curbs on risky investments by insurance companies and MOFCOM has abolished its approval requirements for processing trade
Taxation
State Administration of Taxation, Announcement on Several Levy Administration Issues Relating to the Pilot VAT Project
The Announcement lists the acts conducted by a foreign entity or individual that shall not be deemed the domestic sale of a service or intangible asset, for example, construction services or project supervisory services provided for a domestic entity or individual where the project construction site is outside China.
Further reading
Insurance
China Insurance Regulatory Commission, Circular on Matters Relevant to Strengthening the Oversight of the Investment in Shares by Insurance Institutions and Persons Acting in Concert Therewith (Draft for Comments)
According to the Draft, where an insurance institution is to acquire a listed company, it shall use its own funds for at least 20% of the new shares. An insurance company may not acquire a listed company jointly with persons acting in concert that are not in the insurance business.
See the digest for more details.
Further reading
Customs
Ministry of Commerce and General Administration of Customs, Announcement [2016] No.45
The examination and approval by competent commerce authorities of processing trade contracts and of the sale into China proper of processing trade bonded imported materials and components and of finished products is abolished.
See the digest for more details.
Further reading
Taxation
State Administration of Taxation, Announcement on Several Levy Administration Issues Relating to the Pilot VAT Project
The Announcement lists the acts conducted by a foreign entity or individual that shall not be deemed the domestic sale of a service or intangible asset, for example, construction services or project supervisory services provided for a domestic entity or individual where the project construction site is outside China.
Further reading
Insurance
China Insurance Regulatory Commission, Circular on Matters Relevant to Strengthening the Oversight of the Investment in Shares by Insurance Institutions and Persons Acting in Concert Therewith (Draft for Comments)
According to the Draft, where an insurance institution is to acquire a listed company, it shall use its own funds for at least 20% of the new shares. An insurance company may not acquire a listed company jointly with persons acting in concert that are not in the insurance business.
See the digest for more details.
Further reading
Customs
Ministry of Commerce and General Administration of Customs, Announcement [2016] No.45
The examination and approval by competent commerce authorities of processing trade contracts and of the sale into China proper of processing trade bonded imported materials and components and of finished products is abolished.
See the digest for more details.
Further reading
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