Legislation roundup: VC tax, law firms and judgment enforcement

January 30, 2019 | BY

Susan Mok

Venture capital firm partners may pay tax on an investment fund basis, Hong Kong and Macao law firms are allowed cooperation throughout China, and mainland China and Hong Kong/Macao make progress in reciprocal enforcement of judgments

Tax

Ministry of Finance, State Administration of Taxation, National Development and Reform Commission and China Securities Regulatory Commission, Circular on Policy Issues Concerning Income Tax on Individual Partners of Venture Capital Firms

财政部、国家税务总局、国家发展和改革委员会、中国证券监督管理委员会关于创业投资企业个人合伙人所得税政策问题的通知

A venture capital firm, when calculating the individual income tax payable by its individual partners on their income sourced from the firm, may do so either on a single investment fund basis or on the basis of the entire income of the firm for the year.

Further reading

PRC Individual Income Tax Law (7th Revision)

China Releases Long Awaited Reform to IIT Law

Announcement on Issues Relevant to Enterprise Income Tax on Legal Person Partners of Venture Capital Firms Organized as Limited Partnerships

 

Legal System

Ministry of Justice, Circular on Expanding the Geographical Scope of Partnership Associations Between Mainland Law Firms and Law Firms of the Hong Kong and Macao Special Administrative Regions

司法部关于扩大内地律师事务所与港澳律师事务所合伙联营地域范围的通知

The geographical scope for the establishment of partnership associations between mainland law firms and law firms of the Hong Kong and Macao Special Administrative Regions is expanded to the whole of China.

See the digest for more details.

Further reading

Measures for the Administration of Associations Between Law Firms of the Hong Kong and Macao Special Administrative Regions and Mainland Law Firms (5th Revision)

Shanghai Municipality, Implementing Measures for Associations Between Chinese and Foreign Law Firms in the China (Shanghai) Pilot Free Trade Zone

Supreme People's Court, Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region

最高人民法院关于内地与香港特别行政区法院相互认可和执行民商事案件判决的安排

Reciprocal recognition and enforcement of judgments includes both monetary and non-monetary rulings. This includes trade secret infringement cases and the monetary rulings thereof cover punitive or exemplary damages.

However, the Arrangement, for the time being, does not apply to judgments concerning certain patent infringement cases, certain maritime cases, bankruptcy (insolvency) cases, arbitration-related cases as well as judgments or arbitral awards of other countries or regions.

See the digest for more details.

Further reading

How China's E-Justice System Works?

China or Hong Kong? Some Key Considerations in Cross-Border Matrimonial Disputes

This premium content is reserved for
China Law & Practice Subscribers.

  • 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
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]