Legislation roundup: CDR, tax breaks and banks' risk exposures
May 09, 2018 | BY
Susan Mok &China allows CDRs, tax breaks only require retention of documentation, and curbs are imposed on large exposures of banks
Capital Markets
China Securities Regulatory Commission, Measures for the Administration of the Offering and Trading of Depository Receipts (Draft for Comments)
With respect to the issuer of the underlying foreign securities of a depository receipt, matters such as its equity structure, corporate governance and compliant operation are governed by relevant provisions such as the company law of its foreign place of registration, it shall be ensured that the protection of the rights and interests of domestic investors is not on the whole weaker than the requirements of domestic laws, administrative regulations and the CSRC.
Further reading
Tax
State Administration of Taxation, Measures for the Handling of Enterprise Income Tax Break Policy Items
Enterprises eligible for tax breaks shall adopt the handling method consisting of “self determination, filing for eligibility and retention of relevant documentation for future reference”.
However, integrated circuit production enterprises, integrated circuit design enterprises and software enterprises are required to submit specified documentation to the tax authority.
Further reading
Banking
China Banking and Insurance Regulatory Commission, Measures for the Administration of the Large Risk Exposures of Commercial Banks
The risk exposure of a commercial bank to a single customer or a group customer in the same industry may not exceed 25% of its net Tier 1 capital.
The risk exposure of a global systemically important bank to another global systemically important bank may not exceed 15% of its net Tier 1 capital.
Further reading
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