- National Development and Reform Commission of PRC Promulgates Foreign Investment Project Approval and Record Management Rules
The National Development and Reform Commission of the People’s Republic of China promulgated the Foreign Investment Project Approval and Record Management Rules on April 8th 2014. The Rules have effect from May 1st, 2014.
The Rules were made to do away with provisions that mark distinctions between overseas investment in resources and investments in other areas, except for those in connection with sensitive countries, territories or sectors. According to the Rules, the National Development and Reform Commission is entitled to assess and approve the overseas investment projects where Chinese investors contribute no less than USD 1 billion, while those with contributions of less than USD 1 billion by Chinese investors shall be put on record, no matter whether the projects relate to resource development or not. Before the Rules became effective, the minimum amount of Chinese investors’ contribution to overseas investment projects for resource development that the National Development and Reform Commission had the right to assess and approve were USD 300 million and that to other overseas investment projects were USD 100 million.
In September of last year, the Shanghai Municipality Government published the Incorporation Record Management Rules for Foreign Invested Enterprises in the China (Shanghai) Pilot Free Trade Zone. The Administration Committee of the free trade zone is responsible for making sure overseas investment projects are put on record as prescribed therein. Enterprises in the Free Trade Zone are exempt from the maximum overseas investment amount restriction and their applications made to the Administration Committee of the Free Trade Zone for putting an overseas investment project on record can be easily approved with Overseas Business Investment Certificates.
Official Website of the National Development and Reform Commission of the People’s Republic of China :
http://www.sdpc.gov.cn/zcfb/zcfbl/201404/t20140410_606600.html
- The Ministry of Industry and Information Technology of the People’s Republic of China Promulgates the Pilot Administrative Rules for Foreign Investors in the Value-Added Telecommunication Service Sector in China (Shanghai) Pilot Free Trade Zone
Foreign Investors in the Value-Added Telecommunication Service Sector in China (Shanghai) Pilot Free Trade Zone was promulgated by the Ministry of Industry and Information Technology of PRC and took effect On April 15th, 2014.
Foreign invested enterprises in the China (Shanghai) Pilot Free Trade zone should apply for official permission to do businesses in the value-added telecommunication service sector to the Shanghai Communications Administration, which should finish assessing, processing and making decisions on the applications within 60 days upon accepting them.
In addition, the Rules contain new provisions in connection with business operations, users’ rights and interests, users’ information protection, network maintenance and information security, etc. and witness establishment of information submission and annual inspection systems.
(Official website of Shanghai Communications Administration:
http://www.shca.gov.cn/index.php?m=content&c=index&a=show&catid=25&id=772 ）
- The State Administration of Taxation of the People’s Republic of China issued a notice on the Changing Eligibility for Small Low-Margin Enterprises Entitled to 50% Deduction on Taxable Income
On April 18th 2014, the State Administration of Taxation of the People’s Republic of China issued a notice on the Changing Eligibility for Small Low-Margin Enterprises Entitled to 50% Deduction on Taxable Income.
The scope of this Announcement will be applicable to enterprises whose annual taxable income is no more than RMB 100,000 are defined as small low-margin enterprises eligible for 50% deduction on taxable income. Prior to this Announcement, small low-margin enterprises referred to enterprises whose annual taxable income was no more than RMB 60,000.
Eligible small low-margin enterprises are entitled to a 50% deduction on their taxable income which is currently taxed at a reduced rate of 20% subject to File Serial No. F.T. [2014] 34.
(State Administration of Taxation of PRC:
http://www.chinatax.gov.cn/n2226/n2271/n2272/c696021/content.html)
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