Daily regulatory updates focusing on key issues facing businesses operating in China will be uploaded every morning.
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China Law Express Update for 10-MAR-2010
1. MOC Urges Animation Enterprises to Submit Clear Core Data
The Ministry of Culture (MOC) recently released the Circular on Issues Regarding the Recognition of Animation Enterprises (Circular) to put forward specific requirements for the recognition of animation enterprises and related follow-up issues.
2. Commentary: SAT Clarifies Issues Regarding Tax Verifications for Non-Resident Enterprises
The State Administration of Taxation (SAT) recently released the Measures for Income Tax Verification and Administration for Non-Resident Enterprises (Measures), which clarifies that tax authorities ought to verify taxable incomes in the following ways for non-resident enterprises which could not accurately account for incomes or costs due to poorly kept account books and documents.
3. The First Taxation Administrative Department for Large Corporations Established in Guangdong Province
The Guangdong Provincial Local Taxation Bureau recently officially set up a Taxation Administrative Department for Large Corporations- the first taxation administrative department for large corporations in China.
4. Guangdong Province To Implement Administrative Measures for Taxis
Beginning 1 May 2010, the Guangdong Province will implement the Administrative Measures of Guangdong Province for Taxis (Measures) to tighten the control over the taxi industry.
5. Other Newly Updated Laws and Regulations (10 March 2010)
You can access the full text of the following laws and regulations in Chinese through the hyperlinks below:
6. Beijing: Unauthorised Adoptees May Apply for Permanent Residence
Five authorities including the Beijing Municipal Civil Affairs Bureau and the Public Security Bureau recently released the Circular on Dealing with the Issues of Beijing Citizens Adopting Children Without Permission (Circular), calling for the use of differentiated means to settle unauthorised adoptions under different conditions. Children who do not meet adoption conditions should be raised by Beijing municipal welfare institutions. The Circular urges adopters to process the relevant procedures before 31 December 2010.
7. The State Council Announces 2010 Work Arrangements to Rectify Food Safety Problems
On 2 March 2010, the General Office of the State Council released the 2010 Work Arrangements to Rectify Food Safety Problems, so as to effectively resolve the key food safety issues and comprehensively upgrade food safety levels.
8. Commentary: SAT Defines Issues Concerning Recognition of Qualifications for Ordinary VAT Taxpayers
The State Administration of Taxation (SAT) recently released the Administrative Measures for Recognising the Qualifications of Ordinary Value-Added Tax (Measures), which will become effective on 20 March 2010. The Measures clarifies that the Value-Added Tax (VAT) taxpayers whose annual taxable sales volumes have exceeded the standard for small-scale taxpayers stipulated by MOF and SAT, as well as taxpayers who are newly-established entities, may apply to taxation authorities for recognition of ordinary taxpayer qualifications. The detailed recognition procedures are outlined below:
China Law Express Update for 9-MAR-2010
1. China to Promote the Development of Private Museums
Recently, seven ministries including the State Administration of Cultural Heritage (SACH), the Ministry of Finance (MOF), the Ministry of Culture (MOC) and the State Administration of Taxation (SAT) jointly released the Opinions on Promoting the Development of Private Museums (Opinions).
2. NDRC To Carry Out Comprehensive Inspections on Charges for Enterprises
The National Development and Reform Commission (NDRC) recently released a circular to carry out comprehensive inspection over charges for enterprises from 1 March to the late July 2010. These inspections act as an important step to fulfil the central government's call to lighten the burdens on enterprises, as well as an essential measure to optimize the environment for enterprise development and safeguard legitimate rights and interests of enterprises.
3. MOFCOM Releases Guiding Opinions on Foreign Investments and Cooperation for 2010
On 26 February 2010, the Ministry of Commerce (MOFCOM) released the guiding opinions on foreign investments and cooperation for 2010, which analyses the domestic and international situation faced in the strategy to go global, and clarifies the targets, guidelines and key focal points for foreign investments and cooperation.
4. Case: Sellers Told to Compensate for Appreciation in Value For Backing Out of Property Sale
Two Indonesian brothers who lived in Shanghai, the Jis, had signed the Intermediary Agreement for Real Estate Purchase with Ms. Zhang after collecting an advance deposit for the property sale. Later on, the Jis asked to terminate the purchase and sale agreement because of the rapid increase of second-hand housing prices. Ms. Zhang believed that the Jis' activities had seriously breached their contract, so she sued the Jis to repay her double the amount of her deposit, as well as to compensate her RMB 400,000 for the difference in second-hand housing prices due to the appreciation in value. Recently, the Shanghai Jing'an District People's Court closed the case and ordered the Jis to return Ms. Zhang RMB 100,000 as the doubled deposit, and compensate RMB 200,000 for expected loss of profits.
5. MIIT Strengthens Cooperation with Four State-Owned Banks to Provide Financial Services for SMEs
On 1 December 2009, the Ministry of Industry and Information Technology (MIIT) signed Memorandum of Understanding for Cooperation of Financial Services for Small and Medium-Sized Enterprises (SMEs) with four state-owned banks including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank. In order to promote further cooperation between the administrative departments of SMEs at various levels and these four banks, MIIT released the Circular on Effective Cooperation to Provide Financial Services for SMEs (Circular).
6. Wen Jiabao Calls for Steady and Healthy Development of the Real Estate Market
On 5 March 2010 Chinese Premier Wen Jiabao expressed in the 3rd Conference of the Standing Committee of the 11th People's Congress that they wished to promote the steady and healthy development of the real estate market, and resolutely stop the excessively speedy increase of housing prices increase in certain cities, to satisfy the basic housing requirements of the masses.
7. Other Newly Updated Laws and Regulations (9 March 2010)
You can access the full text of the following laws and regulations in Chinese through the hyperlinks below:
China Law Express Update for 8-MAR-2010
1. MOHRSS Pushes Forward the Establishment of A Human Resources Market
The Ministry of Human Resources and Social Security (MOHRSS) recently issued the Circular on Further Strengthening the Supervision and Administration of the Human Resources Market (Circular) to bring about an integrated management of the human resources market and establish a sound market system.
2. GAQSIQ Repeals 79 Regulatory Documents
On 27 February 2010, the General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) released an announcement to repeal 79 regulatory documents with effect from the date of issuance.
3. Shenzhen Adjusts Tax Rate of Business Tax for the Entertainment Industry
The Administrator of Local Taxation of Shenzhen Municipality (SZALT) recently released a circular which states adjustments in the applied tax rate for Business Tax (BT) from 1 January 2010 concerning taxable items in the entertainment industry such as ''recreation'', ''music cafes'', ''internet cafes'', ''golf'', and ''bars, dance clubs, and karaoke clubs''. The details are as following:
4. MOF Implements Donation Receipts Administration Survey
On 4 March 2010, the Ministry of Finance (MOF) released the Circular on Implementing Donation Receipts Administration Survey (Circular), which announced the decision to carry out a nationwide special survey on donation receipt management. The contents of this survey include the types of donation receipts, scope of application, management status, and conditions for the construction of a system.
5. MLR Regulates the Settlement of Administrative Reviews on Mining Resource Issues
In order to properly deal with administrative disputes concerning mining resources and strictly regulate the administration of mining resources, the Ministry of Land and Resources (MLR) recently released the Circular on Several Opinions Concerning the Settlement of Administrative Reviews on Mining Resources Issues (Circular)
China Law Express Update for 2-MAR-2010
1. SERC Revises the Administration of Electrical Business Licenses
The State Electricity Regulatory Commission (SERC) recently promulgated the revised version of Administrative Measures for Licenses for Installation, Maintenance and Testing of Electrical Facilities (Measures), which became effective on 1 March 2010. The Measures issued on 5 January 2005 was repealed on that day.
2. Stimulants Catalogue 2010 Released
China's General Administration of Sports, the Ministry of Commerce (MOFCOM), the Ministry of Health (MOH), the General Administration of Customs (GAC) and the State Food jointly released an announcement to issue the Stimulants Catalogue 2010, which took effect on 1 January 2010.
3. Administrative Provisions for Food Safety Risk Assessments Released
The Ministry of Health (MOH) together with the Ministry of Industry and Information Technology (MIIT), the Ministry of Agriculture (MOA), the Ministry of Commerce (MOFCOM), the State Administration for Industry and Commerce (SAIC), the General Administration of Quality Supervision, Inspection and Quarantine (GAQSIQ) and the State Food and Drug Administration (SFDA) drafted the Administrative Provisions for Food Safety Risk Assessments (Trial) (hereinafter referred to as Provisions), which took effect on 21 January 2010.
4. Technical Specification for Circulation of Second-Hand Equipment Implemented
The Technical Specifications for Circulation of Second Hand Equipment (Specifications), which was issued by the Ministry of Commerce (MOFCOM), became effective on 1 March 2010.
5. Guangdong Province Regulates Internships of University Students and Industrial Attachments of Graduates
On 1 March 2010, the Guangdong Province released the Provisions of Guangdong for Internship of University Students and Industrial Attachment of Graduates (Provisions), which stipulates that government organs, enterprises and institutions ought to accept university students for internships or industrial attachments according to fixed proportions.
6. SAT Tightens Control Over the Compilation and Administration of Tax-Related Regulatory Documents
On 10 February 2010, the State Administration of Taxation (SAT) released the Administrative Measures for Compilation of Tax-Related Regulatory Documents (Measures), to manage the drafting, audit, decision-making, release, record filing and sorting out of tax-related regulatory documents. The Measures is scheduled to take effect on 1 July 2010.
7. Other Newly Updated Laws and Regulations (2 March 2010)
You can access the full text of the following laws and regulations in Chinese through the hyperlinks below:
8. SAT Releases Rules for Administrative Reviews on Tax-Related Issues
The State Administration of Taxation (SAT) recently released the Rules for Administrative Reviews on Tax-Related Issues (Rules), which is scheduled to be carried out on 1 April 2010. The Rules comprises 12 chapters with 105 articles, which clarify the administrative review mechanism and personnel, scope, jurisdiction, acceptance, evidence for administrative reviews, and so on.
9. Case: Palm I Chat Told to Compensate RMB 400,000 to Tencent Mobile QQ for Illicit Competition
The Tencent Company (Tencent) launched a lawsuit because it believed that the services of ''Palm I Chat'' had caused a significant decline in the quantity of user registrations and service revenue in Tencent. Recently, the Shanghai Second Intermediate People's Court made the first instance judgement and ordered the Wei Lan company and Ling Tong Company, which jointly operated the ''Palm I Chat'' business, to stop their illicit competition and jointly compensate Tencent RMB 400,000 for economic losses.
China Law Express Update for 1-MAR-2010
1. China to Revise Copyright Law
On 26 February 2010, the National People's Congress (NPC) released the Decision to Revise the (Decision), which is scheduled to be carried out on 1 April 2010.
2. CFFE Revises Trading Rules for Stock Futures Simulated Transactions
On 26 February 2010, the China Financial Futures Exchange (CFFE) released the circular to publish the revised Trading Rules of the China Financial Futures Exchange for Stock Futures Simulated Transactions (Simulated Transaction Rules) as well as the Shanghai-Shenzhen 300 Stock Index Futures Stimulation Transaction Contracts, which became effective on 1 March 2010.
3. Full Text Translation: Circular on Relevant Issues Concerning Compilation of Actuarial Reports (Baojianfa [2010] Document No. 15)
On 22 December 2009, the Ministry of Finance printed and distributed the Provisions of Accounting Treatments for Insurance Contracts (Caikuai [2009] Document No. 15), which regulates insurance premium revenues and insurance reserves in accounting assumptions. In order to appropriately separate accounting regulations and supervision requirements as well as ensure steady operation and supervision for insurance, CIRC has decided to temporarily keep the original provisions of the relevant actuarial reports after deliberation, and clarifies the relevant issues as follows:
4. Guangdong Province Releases Four Local Regulations to Control Real Estate Investments
The government of Guangdong province recently released the Transmitting the Circular of the General Office of the State Council on Boosting the Steady and Healthy Development of the Real Estate Market (Circular), and also promulgated four measures to control speculative investment behaviour in the real estate market.
5. MOF Amends the Measures for Handling Irregular Behaviour in National CPA Examinations
The Ministry of Finance recently released the revised Measures for Handling Irregular Behaviour in National CPA Examinations (Measures), which became effective on 1 March 2010. The Measures extends the scope of application, merges and integrates the ways of handling candidates violating examination regulations, and adds two disciplinary measures: lifelong examination ban and removal of examination exemptions.
6. Other Newly-updated Laws and Regulations (1 March 2010)
You can access the full text of the following laws and regulations in Chinese through the hyperlinks below:
7. Several Laws and Regulations to Take Effect on 1 March
From 1 March 2010, China will carry out a batch of new laws, regulations and regulatory documents, including the Island Protection Law of the People's Republic of China, the Circular on Issues Regarding the Administration of Foreign Exchange Donations by Local Institutions, the Administrative Measures for Recognising the Qualifications of Ordinary Value-Added Tax Taxpayers, the revised Trading Rules of the China Financial Futures Exchange for Stock Futures Simulated Transactions and the Shanghai-Shenzhen 300 Stock Index Futures Stimulation Transaction Contracts, as well as the Supplementary Provisions to the Administrative Provisions on the Qualifications of Labour Export Services for Dispatched Sailors, and so on.
China Law Express Update for 26-FEB-2010
1. Shanghai Releases New Policy to Boost the Development of Intermediary Services Industry
The Shanghai Municipal Government recently released the Several Opinions Concerning Further Improving the Development of Intermediary Services Industry (Several Opinions), which defines ten key improvement areas such as consultation services, credit services, financing guarantees, accounting and tax services, legal and arbitration services, trade and transportation services, exhibition services, intellectual property services, human resource services and advertisement services.
2. Shenzhen Releases Tentative Measures for Food Distribution Permits
The Shenzhen Bureau of Market Administration (SZBMA) recently released the Tentative Measures for Food Distribution Permits in Shenzhen (Tentative Measures), which clarifies issues regarding food distribution enterprises applying for food distribution licenses.
3. Regulations on Basic Services Regarding Life Insurance Products Released
The China Insurance Commission (CIRC) recently released the Regulations on Basic Services Regarding Life Insurance Products (Regulations), which will become effective on 1 May 2010. The Regulations comprehensively standardises each of the links involved in operating a life insurance product business, including telephone services, acceptance of new orders, return visits from clients, contract maintenance, claims settlement services and dealing with complaints.
4. Other Newly-updated Laws and Regulations (26 Feb 2010)
You can access the full text of the following laws and regulations in Chinese through the hyperlinks below:
5. Shanghai Releases Recommended Local Environmental Standards
The Shanghai government recently released the Limits and Measuring Methods for Indoor Structural Vibration and Structural Noise Caused by the Operation of Urban Railway Transportation Trains (Underground) (Standards), which will become effective on 1 March 2010.
6. CIRC Reinforces Supervision of Insurance Clauses and Rates
The China Insurance Regulatory Commission (CIRC) recently released the revised Administrative Measures for Insurance Clauses and Rates of Property Insurance Companies (Administrative Measures), which is scheduled to be carried out on 1 April 2010. The Administrative Measures further improves the systems for approval and filing concerning insurance clauses and rates, and also revises the scope of approval, filing procedures, and submission of materials. Furthermore, the Administrative Measures strengthens the administration of the person-in-charge of legal affairs in insurance application companies and the person-in-charge of actuarial affairs, and also imposes stricter job qualifications for them.
