Legislation roundup: PE fund WFOEs, FIE registered capital and wealth management VAT
January 12, 2017 | BY
Katherine JoAMAC has clarified the record filing process for foreign PE fund managers, the State Council has pledged equal treatment for FIEs and asset managers have been imposed VAT burdens
Private Equity
Asset Management Association of China, Instructions for Filling out the Form for the Record Filing of a Wholly Foreign-owned or Equity Joint Private Securities Investment Fund Manager
The applying institution shall independently carry out its investment decision-making, may not issue trading instructions through an offshore institution or system, system terminals shall be installed in China, transaction routing shall be transparent and traceable, trading data complete and searchable, trading procedures clear and controllable and transaction records traceable throughout.
See the full translation.
Further reading
FDI
State Council, Circular on Several Measures to Expand the Opening to the Outside World and Actively Utilize Foreign Investment
The minimum registered capital requirement for companies invested in by foreign investors is abolished, and a registered capital system uniform for both Chinese-invested and foreign-invested enterprises shall be implemented.
The business license and qualification applications of foreign-invested enterprises shall be reviewed impartially. The reviews for Chinese-invested and foreign-invested enterprises shall be conducted based on uniform criteria and by the same deadlines.
See the digest for more details.
Further reading
Tax
Ministry of Finance and State Administration of Taxation, Circular on Clarifying the Value-added Tax Policy on Finance, Real Property Development, Educational Support Services and Others.
Ministry of Finance and State Administration of Taxation, Supplementary Circular on Issues Relevant to the Value-added Tax Policy on Asset Management Products
According to the Circular, the manager of an asset management product shall be the payer of value-added tax in respect of value-added tax taxable acts occurring in the course of the operation of the asset management product. The Supplementary Circular clarifies that such policy shall be effective as of July 1 2017.
See the digest for more details.
See the digest for more details.
Further reading
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