Legislation roundup: FX derivatives, enterprise income tax and P2P lending
March 02, 2017 | BY
Katherine Jo &clp articles &SAFE has opened up FX derivative trading to foreign institutional investors, proposed EIT Law amendments have offered reductions for large donations, and the CBRC has released rules to govern the custody of P2P loan proceeds
Capital Markets
State Administration of Foreign Exchange, Circular on Issues Relevant to Control of the Foreign Exchange Risks of Foreign Institutional Investors on the Interbank Bond Market
Qualified domestic financial institutions are allowed to carry out renminbi to foreign exchange derivative trading for their foreign clients.
The foreign exchange derivatives trading of foreign investors shall be limited to hedging their exchange risk exposure arising from their investments on the interbank bond market of funds remitted into China from abroad.
See the digest for more details.
Further reading
Tax
Standing Committee of the National People's Congress, Decision on Amending the <PRC Enterprise Income Tax Law>
The portion of the charitable donation expenditures incurred by an enterprise that fall within 12% of its gross profit for the year may be deducted before calculation of the taxable income. The portion above 12% of the gross profit for the year may be rolled over to the following three years and deducted before the calculation of taxable income.
Further reading
Financing
General Office of the China Banking Regulatory Commission, Guidelines on the Depositary Business for Peer-to-peer Loan Proceeds
The Guidelines govern the custody of the dedicated P2P loan proceeds and related funds arising in the course of the investment and financing activities carried out by borrowers, lenders and guarantors.
The depositary shall not be responsible for reviewing loan project and loan transaction information for genuineness, nor bear liability for the truthfulness, accuracy and completeness of P2P loan information and data. The principal shall bear the attendant liability for business risks and losses arising from its deliberate fraud, forging of data or data errors.
See the digest for more details.
Further reading
Capital Markets
State Administration of Foreign Exchange, Circular on Issues Relevant to Control of the Foreign Exchange Risks of Foreign Institutional Investors on the Interbank Bond Market
Qualified domestic financial institutions are allowed to carry out renminbi to foreign exchange derivative trading for their foreign clients.
The foreign exchange derivatives trading of foreign investors shall be limited to hedging their exchange risk exposure arising from their investments on the interbank bond market of funds remitted into China from abroad.
See the digest for more details.
Further reading
Tax
Standing Committee of the National People's Congress, Decision on Amending the <PRC Enterprise Income Tax Law>
The portion of the charitable donation expenditures incurred by an enterprise that fall within 12% of its gross profit for the year may be deducted before calculation of the taxable income. The portion above 12% of the gross profit for the year may be rolled over to the following three years and deducted before the calculation of taxable income.
Further reading
Financing
General Office of the China Banking Regulatory Commission, Guidelines on the Depositary Business for Peer-to-peer Loan Proceeds
The Guidelines govern the custody of the dedicated P2P loan proceeds and related funds arising in the course of the investment and financing activities carried out by borrowers, lenders and guarantors.
The depositary shall not be responsible for reviewing loan project and loan transaction information for genuineness, nor bear liability for the truthfulness, accuracy and completeness of P2P loan information and data. The principal shall bear the attendant liability for business risks and losses arising from its deliberate fraud, forging of data or data errors.
See the digest for more details.
Further reading
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now