Legislation roundup: Individual income tax, enterprise names and power industry
July 19, 2018 | BY
Susan MokAggregate income is applied to individual income tax, foreign companies may use the word “China” in its names and four industries will be opened for power deregulation.
Tax
Bill for Amendments to the PRC, Individual Income Tax Law (Draft)
Article 3 is amended as follows: The individual income tax rates shall be as follows:
(1) a 3% to 45% progressive tax rate shall apply to aggregate income;
(2) a 5% to 35% progressive tax rate shall apply to business income;
(3) a proportional tax rate of 20% shall apply to interest, dividend and extra dividend income, property lease income, property transfer income, incidental income and miscellaneous income.
Further reading
Company Law
State Administration for Market Regulation, Regulations for the Administration of the Registration of Enterprise Names (Draft for Comments)
The word “(中国)”[1] may be used in the middle of the name of a wholly foreign-owned enterprise or a foreign-invested enterprise controlled by the foreign party if the trade name of the foreign investor is used in the name of such enterprise.
Further reading
Energy
National Development and Reform Commission and National Energy Administration, Circular on Actively Promoting Market-based Trading in Electric Power and Further Improving the Trading Mechanism
The Circular actively supports the full application of the power generator-user plan for users in the four industries of coal, iron and steel, nonferrous metals and construction materials in 2018.
When a user and power generator execute a contract, they will conduct negotiations at their own initiative, and provide for the establishment of a “reference power price + float mechanism” to generate a market-based pricing mechanism.
Further reading
[1] Translator's note: These are the Chinese characters for “(China)”.
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