China Regulatory Brief: Catalogue of Codes on Tax Reduction & Exemption Policies

November 23, 2015 Posted by China Briefing Reading Time: 4 minutes

Catalogue of Codes of the Tax Reduction & Exemption Policies

On October 29, the State Administration of Taxation issued the Catalogue of Tax Reduction and Exemption Policy Codes. The Catalogue approaches clauses on central level tax reduction and exemption policies, current to the date of issue, including provisions on tax laws and regulations, and tax reduction & exemption policies which are either developed by the State Council or issued by central departments with the consent of the State Council’s authority. Policies developed and issued by the local authorities are pertinent to their respective regions, and are not covered in the Catalogue; corresponding policy codes and methods of issuance shall be otherwise determined by local taxation authorities.

Draft of Measures for Approval of Application for Registration of Foreign-invested Enterprises

On November 17, the State Administration of Industry and Commerce (SAIC) published a revised draft proposal of the Measures for administration and registration of foreign enterprises engaged in production and business activities in China, seeking opinions on the draft by 1 December this year. The Measures state that the SAIC has delegated the authority over approving application for registration of foreign enterprises partaking in production and trading in the China region to relevant provincial level departments in industry and commerce sectors.

Xi Jinping Vows to Remove Restrictions on Access of Foreign Investment

On November 18 at the APEC CEO Summit held in Manila, Xi Jinping delivered a speech highlighting the importance of the role of APAC in facing global economic challenges. In the speech, Xi stated that China will continue to carry out reform of the country’s foreign investment management system, planning to remove restrictions on access of foreign investment significantly, improving intellectual property rights and protection, and to build an open, transparent, highly efficient and equal market environment.

China Promotes Services in Order to Boost Consumption

On November 23, the State Council announced it will encourage the development of the retail, health, travel and sports sectors in order to boost domestic consumption. On the Council’s official website, it was announced that financial institutions will be required to accept a wider range of collateral for extending loans to “lifestyle-related businesses”. Services related to families and the elderly, culture, law, accommodation, catering, education and training were among the main sectors that the government provided as examples for development.

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