Legislation roundup: Tax agreement, outbound investment and insurance companies

March 05, 2018 | BY

Susan Mok &

Foreign partners may enjoy tax agreement benefits, insurance company-backed foreign loans should comply with outbound investment policy and establishment procedures for insurance companies are streamlined.

Tax

State Administration of Taxation, Announcement on Several Issues Concerning the Implementation of Tax Agreements

国家税务总局关于税收协定执行若干问题的公告

If a partner in a partnership established in China in accordance with Chinese laws is a tax-resident of the counterparty of a tax agreement, the portion of income on which such partner bears a tax payment obligation in China that is deemed by the counterparty as its tax-resident's income shall be eligible in China for the benefits available under such agreement.

Further reading

Measures for the Administration of the Treatment for Which Non-tax-residents are Eligible Under Tax Agreements (Trial Implementation)

Supplementary Circular on Issues Relevant to the «Measures for the Administration of the Treatment for Which Non-tax-residents are Eligible Under Tax Agreements (Trial Implementation)»

Insurance

China Insurance Regulatory Commission and State Administration of Foreign Exchange, Circular on Matters Relevant to Regulating the Business of Providing Domestic Security for Foreign Loans Conducted by Insurance Institutions

中国保险监督管理委员会、国家外汇管理局关于规范保险机构开展内保外贷业务有关事项的通知

The proceeds derived by an insurance institution through the provision of domestic security for foreign loans shall be used solely for the investment project of an SPV. The investment project of the SPV shall comply with the policy direction and relevant requirements of the state in respect of outbound investments, be stringently subject to the provisions on outbound investments in the encouraged, restricted and prohibited categories.

Further reading

Provisions on Foreign Exchange Control in Connection with the Cross-border Provision of Security

Opinion: Simplifying cross-border security

China Insurance Regulatory Commission, Decision on Revising the <Implementing Rules for the PRC Regulations for the Administration of Foreign-invested Insurance Companies> and Three Other Regulations

中国保险监督管理委员会关于修改《中华人民共和国外资保险公司管理条例实施细则》等四部规章的决定

The Decision removes the notary public requirement for application materials for the establishment of a foreign-invested insurance company or a representative office of a foreign insurance institution.

Further reading

Implementing Rules for the PRC Regulations for the Administration of Foreign-invested Insurance Companies

Measures for the Administration of Resident Representative Organizations in China of Foreign Insurance Institutions

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