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.
The Supplementary Provisions relaxes pre-requisite for foreign investment in the PRC, eligibility of investment companies being recognized as regional headquarters and foreign exchange control procedures.
The New Opinions on Foreign Investment in China Real Estate represents the PRC government's concern and determination to cool down an overheated real estate market.
This Circular provides implementing procedures to the earlier issued Tentative Measures for the Administration of Overseas Financial Management Services Offered by Commercial Banks on Behalf of Customers.
The Circular permits currency conversions between different foreign currencies at designated banks. It removes the foreign exchange limit and allows the collection of premiums either in renminbi or foreign exchange.
The Provisions define applicable laws where international practices represented by the usual UCP 500 do not cover the disputed LC issue, the legal relationship between the parties to an LC, and the concept of 'LC fraud'.
The Measures stipulate the method of determining the dutiable value of imported goods, the transaction valuation method, elements for which the transaction value is to be adjusted and when special buyer/seller relationships are deemed to exist.
The Tentative Measures allow PRC institutions and residents to invest in foreign financial products through PRC commercial banks, thus broadening their investment channels.
The Circular symbolizes further liberalization of the capital account foreign exchange purchase and remittance by PRC entities for making outbound foreign investments, following previous attempts in 2003 and 2005.