The minimum duration of business establishment and assets for QFII status is clearly set out. Limitations on shareholding percentages of securities investments in China by foreign investors are imposed.
Issuance of hybrid capital bonds now requires disclosure of various matters, which include the capital adequacy ratio for the past three years, business position, risk alert, and so on.
The Official Reply addresses queries from Provisional Office of the State Administration of Taxation on the definition of permanent establishments of foreign enterprise providing services in the PRC.
Clarifies criteria for the recognition of newly established enterprises, eligibility for the preferential income tax policies, the tax authority's power to determine such eligibility, the applicability for fixed periods of enterprise income tax reduction and exemptions.
The People's Court may order an arbitration de novo by the arbitration tribunal when 1) the arbitration award was based on fabricated evidence, or 2) evidence was concealed that would have affected the impartiality of the award.
The Provisions underline the PRC's concern over inbound M&A activities. It adds extra regulations to the administration system, determination of qualified FIEs, certain M&A activities, and foreign exchange registration.
The PRC Enterprise Bankruptcy Law modernizes the PRC corporate bankruptcy regime, applicable to both state-owned and domestic and foreign private companies.
The new rules revises six aspects including increasing the deductible amount for income from contracting for or leasing the operation of enterprises or institutions and clarifying tax returns procedures while further stipulating the duties of withholding agents in relation to tax withheld on the full amount for all personnel.