May 2019 / China

May 31 2019

MOF Releases Preferential Income Tax Policies for Integrated Circuit Design and Software Companies

The Ministry of Finance and the State Administration of Taxation recently issued the Announcement about Preferential Enterprise Income Tax Policies for Integrated Circuit Design and Software Companies. According to the announcement, eligible integrated circuit design and software companies will continue to enjoy enterprise income tax exemptions in the first two years if they had become profitable before December 31, 2018, and their income tax rate will be halved from the statutory tax rate of 25% from the third to the fifth year.
May 31 2019

State Council Revises Administrative Regulations

Premier Li Keqiang recently signed a decree to issue the Decision to Revise Some Administrative Regulations. Four administrative regulations will be amended, according to the decision. As for the Regulation on the Implementation of the Enterprise Income Tax Law, the 51st article has been revised as “the charitable donation in the ninth article of the Enterprise Income Tax Law refers to money that enterprises donate to charitable activities and good causes via charitable organizations or governments and related departments above the county level”.
May 31 2019

Two Authorities Announce Policies Related to Vehicle Acquisition Tax

The Ministry of Finance and the State Administration of Taxation issued on May 27, 2019 the Announcement about Policies Related to Vehicle Acquisition Tax. According to the announcement, the total price actually paid to the seller by taxpayers when they purchase the taxable vehicle for self-use shall be determined according to the price specified in the relevant vouchers, excluding the value-added tax. If a vehicle that has already been taxed with vehicle acquisition tax is returned to the automaker or seller, and the taxpayer wants to get a rebate of the vehicle acquisition tax, the period of use shall begin from the date of tax payment until the date of tax rebate application. The announcement will be effective from July 1, 2019.
May 31 2019

Shanghai Adopts Resolution to Implement Foreign Investment Law

The Standing Committee of Shanghai Municipal People's Congress voted on May 23, 2019 to adopt the Decision of Implementing the Foreign Investment Law. Ding Wei, director of legal affairs at the Standing Committee of Shanghai Municipal People's Congress, said the decision the first of its kind in China to implement the Foreign Investment Law, and it aims to ensure smooth enforcement of the law in Shanghai and support and authorize the municipal government to take positive and effective actions under the framework of the law. The decision has six articles, and the second article is about how to deal with inconsistencies between the city's local regulations and the national law.