During the period from 1 January 2011 to 31 December 2013, reserve provided at 1% of risky loan assets listed in a notice issued by SAT and actual loss which is recognized according to tax allowed conditions are deductible before income tax. Lee & Lee Associates Comments: The above notice does not clarify the issue […]
Simple Method Can be Adopted in Levying VAT for Sales of Self-used Fixed Assets by General Taxpayers
Since 1 February 2012, or sales of self-used fixed assets, under the circumstances listed by a tax notice, general taxpayers can adopt simple method to calculate VAT at half of 4%. . Lee & Lee Associates Comments: The above notice is a supplementary document to Cai Shui [2009], No.9. In combine, for sales of self-used fixed […]
In Shanghai, following services shall be levied with VAT instead of business tax since 1 January 2012. a) “Transportation industry”, including transportation by land, water, air and pipeline and b) “Some modern service”, including R&D and technical services, information technology services, culture and creativity services, assisting logistic services, tangible personal property rental services and assurance […]
According to the announcement of SAT on 26 September 2011, in the process of assets reorganization, transferring of all or partial physical assets and the related claims, liability and labor force to other enterprises or individuals through merger, division, sale or replacement, does not belong to the scope of levying business tax. Lee & Lee […]
According to the announcement of SAT on 4 September, 2011, for input VAT invoices issued after Jan 1st 2007 by the general taxpayer, of which, due to reasons recognized by tax authority, have not been deducted from output VAT within the tax-permitted period, after being verified by SAT, the deduction can be continued. Lee & […]
According to Article 97 of Social Insurance Law applied since July 1st,2011, expatriates working in China shall participate in social insurance schemes. Lee & Lee Associates Comments: The implementation of Social Insurance Law obviously will increase the operation cost of employers who hires expatriates. Employers may need re-evaluate human resource plan of whether hire local staff […]
According to the announcement of SAT on 7 July 2011, enterprise shall pay corporate income tax on taxable income arising from transferring restricted shares of listed companies. Regarding transferring of the restricted shares of listed companies the enterprise holds on behalf of individuals to the actual owners, if the balance after tax is concerned, the […]
New law of the People’s Republic of China on Individual Income Tax is released on June 30, 2011 by 21st Session of the Standing Committee of the Eleventh National People’s Congress. According to new law, for income from wages and salaries, the deduction amount is increased to BMB 3,500 and expands the tax-paying scope of […]
According to a Notice issued by the State Administration of Foreign Exchange (hereinafter referred to as the “SAFE”) on 23 May 2011, management measures for some foreign exchange transactions under capital accounts are adjusted. These adjustments relax the management on some foreign exchange transactions to certain degree by comparison with the rules before. Lee & […]
According to a notice issued by SAT on April 28th 2011, for employees’ annual one-off bonuses, individual income tax partially borne by employees is regarded as employee’s income and shall be included in employee’s income to pay individual income tax. Lee & Lee Associates Comments: Employee shall pay individual income tax for the individual income tax […]
