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Now! China – November 2019

TAX

  • Release of the "Announcement of the State Taxation Administration (2019) No. 29"

CORPORATE ADVISORY

  • 2019 Edition of Negative Lists for Access of Foreign Investment Unveiled

HUMAN RESOURCES

  • Beijing Sets Benchmark Corporate Wage Growth
  • Social Security Agreement between China and Japan
  • MOHRSS Urges Better Employment and Entrepreneurship Services

 

Tax

Release of the "Announcement of the State Taxation Administration (2019) No. 29"

In order to achieve high-quality development of comprehensive bonded zones, the State Taxation Administration, the Ministry of Finance and the General Administration of Customs jointly released the “Announcement of the State Taxation Administration (2019) No. 29”. The Announcement was made effective on 8 August 2019.

The pilot scheme on the qualification of general taxpayers may be carried out in a comprehensive bonded zone that has completed filing with the State Administration of Taxation, the Ministry of Finance and the General Administration of Customs. Thereafter, qualified enterprises in the comprehensive bonded zone may voluntarily apply to become pilot enterprises to handle qualification registration of general VAT taxpayers. Current tax policies are still relevant to processing trade goods sold from locations outside the comprehensive bonded zone of pilot enterprises, while goods sold to pilot enterprises (including water, steam, electric power, and fuel) shall no longer be governed by export tax rebate policies but still subject to VAT and consumption tax according to relevant provisions.

 

CORPORATE ADVISORY

2019 Edition of Negative Lists for Access of Foreign Investment Unveiled 

On 30 June 2019, the National Development and Reform Commission ("NDRC") and the Ministry of Commerce ("MOFCOM") jointly issued the Special Administrative Measures for Access of Foreign Investment (Negative List) (2019 Edition), the Special Administrative Measures for Access of Foreign Investment in Pilot Free Trade Zones (Negative List) (2019 Edition) and the Catalogue of Industries for Encouraged Foreign Investment (2019 Edition), all of which entered into force on 30 July 2019. 

The 2019 edition of negative lists for access of foreign investment was further condensed from 48 to 40 items, while the negative list for access of foreign investment in pilot free trade zones was reduced from 45 to 37 items, lifted from the negative list limits on foreign investment in fields such as catching of aquatic animals and publishing.

HUMAN RESOURCES

Beijing Sets Benchmark Corporate Wage Growth

On 3 September 2019, the Beijing Municipal Human Resources and the Social Security Bureau released the latest wage guidelines for corporate employees . The Bureau sets the benchmark wage growth between 8 per cent and 8.5 per cent this year, and sets the lower end of wage growth at 3.5 per cent.

Social Security Agreement between China and Japan 

On 28 August 2019, the Ministry of Human Resources and Social Security announced that the Social Security Agreement between the Government of the People’s Republic of China and the Government of Japan will take effect on 1 September 2019.

According to this Agreement, Japan will exempt Chinese expatriates, seafarers, aircraft employees and public functionaries and staff members of diplomatic organisations and consulates from pension annuities and national citizen annuities; while China will exempt Japanese people's obligations to pay basic endowment insurance in China. Similarly, Chinese expatriates’ spouses and children in Japan can also be exempted from social security contributions under certain circumstances.

China has also signed social security agreements with 11 other countries, including Germany, South Korea, France, Luxembourg and Serbia, out of which nine agreements have taken effect. 

 

MOHRSS Urges Better Employment and Entrepreneurship Services 

The Ministry of Human Resources and Social Security recently released the Circular about Providing Employment and Entrepreneurship Services for Citizens of Hong Kong, Macau and Taiwan Residing in the Mainland.

According to the Circular, local governments should provide basic public services, such as policy consultations, job referrals, and guidelines on how to start working in China, as well as business startups incubation to citizens of Hong Kong, Macau and Taiwan who hope to find jobs or start their own businesses in their native land. Local governments should also support them to apply for and use social security cards and release their personal information for the purpose of engaging with services related to human resource and social security.

 

ABOUT US

Established in 2001, SBA Stone Forest is a corporate advisory and public accounting group headquartered in Shanghai with offices in Beijing, Suzhou, Shenzhen, Chengdu and Hangzhou. We help foreign businesses set up in China and thereafter navigate its regulatory and business environment. 

Discerning international businesses appreciate our Singapore heritage as it epitomises excellence, integrity and trust. We share the same systems, high standards, international best practices and service culture of our Singapore parent.

Together with our partner-owned public accounting practice, we offer expert knowledge and one-stop, hassle-free solutions for Audit, Tax Advisory & Compliance, Advisory (Equity Investment Management & Risk Management) and Business Solutions (Accounting & Advisory, Payroll & HR Advisory, Corporate Secretarial & Advisory).

We are also well-positioned to help Chinese enterprises internationalise, given our Singapore parentage in a top financial and business hub in Asia, and our membership in the Allinial Global international network.

 

Contact Us

Website: www.SBASF.com 

 

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