Beijing
Deferral of withholding tax on distributed profits re-invested by foreign investors for direct investment in China
China is experiencing a certain decrease in foreign investment resulting, amongst other reasons, from the increasing labor and other costs. The State Administration of Taxation, the Ministry of Finance, the Ministry of Commerce and the National Development and Reform Commission, have jointly launched a new tax preferential policy for overseas investors, Cai Shui (2017) No. 88, Circular on Policy Issues concerning Temporarily Not Levying the Withholding Tax on Distributed Profits Used by Overseas Investors for Direct Investments in order to boost the economy, further encourage foreign investments, and promote continuing operations within China on a long-term basis. The new tax policy allows the foreign investors to temporarily defer the withholding taxes on distributed profits that are re-invested directly into China, if certain conditions are met.The social security agreement between Spain and China protects posted workers and reduces companies’ labor costs
On May 19, 2017, following the negotiations commenced in 2011, the Social Security Agreement between the Kingdom of Spain and the People’s Republic of China was formally signed. The signing took place during the meeting of G-20 labor ministers in Bad Neuenahr (Germany) and was formalized between China’s Human Resources and Social Security Minister, Mr. Yin Wimin, and Spain’s Employment and Social Security Minister, Ms. Fátima Bañez.China Supreme Court issues the forth interpretation of the company law to clarify certain applications to the law
On August 25, 2017, China’s Supreme People’s Court (the “SPC”) issued the Provisions on Certain Issues Concerning the Application of the Company Law of the People’s Republic of China (IV) (“Interpretation IV”), which came into effect on September 1, 2017.Financial accounts of non-residents: under strict supervision of the SAT
On May 19, 2017, the State Administration of Taxation (“SAT”), the Ministry of Finance, the People’s Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, as well as the China Insurance Regulatory Commission issued an announcement on the Administrative Measures of Tax Information Due Diligence for Financial Accounts of Non-residents (“Announcement 14”) to implement the information exchange (“IE”) of financial accounts between China and other participated countries or jurisdictions.