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OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT LEVY OF URBAN LAND USE TAX OF FOREIGN-INVESTED ENTERPRISES AND FOREIGN ENTERPRISES

Official Reply of the State Administration of Taxation about Levy of Urban Land Use Tax of Foreign-invested Enterprises and Foreign
Enterprises

Guo Shui Han [2007] No. 596

Local Taxation Bureau of Xiamen,

We have received your Request for Establishment of Transitional Period for the Levy of Land Use Tax of foreign-funded enterprises
(Xia Di Shui Fa [2007] No.50). Upon study, we hereby render a reply as follows:

“Decision of the State Council on the Modification of ‘Interim Regulations of the People’s Republic of China Governing Land Use Tax
in Cities and Towns'”, which brings foreign-invested enterprises and foreign enterprises into the levy scope of urban land use tax,
is an important measure of the country to strengthen administration of land, is conducive to give full play to taxation as an economic
leverage, guide enterprises of all types to utilize land reasonably and economically, protect land resources, and make tax burden
fair. All localities should levy urban land use tax on enterprises of all types, including foreign-invested enterprises and foreign
enterprises in strict accordance with the decision of the State Council and relevant provisions of the revised “Interim Regulations
of the People’s Republic of China Governing Land Use Tax in Cities and Towns”.

State Administration of Taxation

June 1, 2007



 
State Administration of Taxation
2007-06-01

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON ENTRY INTO FORCE AND ENFORCEMENT OF THE AGREEMENT BETWEEN THE GOVERNMENT OF PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF BRUNEI DARUSSALAM FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

Circular of the State Administration of Taxation on Entry into Force and Enforcement of the Agreement between the Government of People’s
Republic of China and the Government of Brunei Darussalam for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with
respect to Taxes on Income

Guo Shui Fa [2007] No.64

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government and the cities specifically designated in the state plan,

The Government of People’s Republic of China and the Government of Brunei Darussalam have officially signed the Agreement for the
Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income (hereinafter referred to as the Agreement)
on September 21, 2004. The foreign affairs departments of both governments have exchanged notes with each other on February 25th,
2005 and November 29th, 2006, respectively, confirming that the necessary legal procedures for entry into force have been accomplished.
Subject to the provision of Article 28 of the Agreement, the Agreement shall enter into force as of January 1, 2007. The State Administration
of Taxation has printed and distributed the text of the aforesaid Agreement to you in the “Guo Shui Han [2006] No. 1103” on October
8th, 2004. Please comply with and enforce it accordingly.

State Administration of Taxation

June 5, 2007



 
State Administration of Taxation
2007-06-05

 






CIRCULAR OF CHINA BANKING REGULATORY COMMISSION CONCERNING WHOLLY FOREIGN-FUNDED BANKS AND CHINESE-FOREIGN EQUITY JOINT BANKS TO CONDUCT THE BANK CARD BUSINESS

Circular of China Banking Regulatory Commission concerning Wholly foreign-funded Banks and Chinese-foreign Equity Joint Banks to Conduct
the Bank Card Business

Yin Jian Fa [2007] No. 49

All branches of China Banking Regulatory Commission,

In order to regulate the administration of bank card business of wholly foreign-funded banks and Chinese-foreign equity joint banks
and prevent the risks of bank card business, pursuant to the Regulations of the People’s Republic of China on the Administration
of Foreign-funded Banks, the Detailed Rules on the Implementation of the Regulations of the People’s Republic of China on the Administration
of Foreign-funded Banks and Measures for the Administration of the Bank Card Business, you’re hereby notified of the following issues
on wholly foreign-funded banks and Chinese-foreign equity joint banks to conduct the bank card business:

1.

Wholly foreign-funded banks and Chinese-foreign equity joint banks may apply for conducting the bank card business as of the day when
the present Circular is printed and distributed.

2.

The term “bank cards” as mentioned in the present Circular is classified into RMB cards and foreign currency cards as per different
currencies, including debit cards, quasi-credit cards and credit cards.

Quasi-credit cards and credit cards are referred to as credit cards in general.

3.

Wholly foreign-funded banks and Chinese-foreign equity joint banks may, upon approval of China Banking Regulatory Commission (hereinafter
referred to as the CBRC), conduct the bank card business within the scope of its clients. An applicant shall satisfy the following
requirements:

(1)

Its capital adequacy ratio, asset quality and other main supervisory indicators are in conformity with the related provisions of the
CBRC;

(2)

It has management rules and risk management measures commensurate with its needs of conduction of bank card business;

(3)

It has established a computer system in conformity with the related business and technical standards and has the technical capability
to ensure the safety of the banking information within the territory of China;

(4)

It has technicians, managerial personnel and corresponding management institutions which can satisfying the needs of conduction of
bank card business; and

(5)

Other prudent conditions as requested by the CBRC.

If a wholly foreign-funded bank or Chinese-foreign equity joint bank plans to issue foreign currency cards, it shall have the qualifications
as approved by the foreign exchange administrative department of the State Council for conducting settlement of foreign exchange
and sale of foreign currencies.

4.

A wholly foreign-funded bank or Chinese-foreign equity joint bank which plans to issue bank cards shall abide by the bank card business
and technical standards as formulated by the People’s Bank of China and meet the general requirements for the network of bank cards.

5.

A wholly foreign-funded bank or Chinese-foreign equity joint bank which plans to conduct the bank card business shall apply to the
branch of the CBRC of the place where its headquarters is located by analogy to the application materials as stipulated in the Measures
for the Administration of Bank Card Business.

6.

The branch of the CBRC of the place where the headquarters of the wholly foreign-funded bank or Chinese-foreign equity joint bank
is located shall submit the application materials together with the examination opinions to the CBRC within 20 days as of the date
of receiving a complete set of application materials.

The CBRC shall, within 3 months after receiving the compete set of application materials submitted by the wholly foreign-funded bank
or Chinese-foreign equity joint bank to conduct bank card business, make a decision of approval or disapproval. In case it makes
a decision of disapproval, it shall give a written notification to the applicant and make an explanation.

7.

If a wholly foreign-funded bank or Chinese-foreign equity joint bank, after getting the approval to conduct the bank card business,
needs to conduct the business of such new types of bank cards as quasi-credit cards or credit cards, it shall make application for
approval under the present Circular.

8.

A wholly foreign-funded bank or Chinese-foreign equity joint bank shall, after getting the approval to conduct the bank card business,
report to the local institution dispatched by the CBRC the types of bank cards which it plans to conduct.

If a branch of a wholly foreign-funded bank or Chinese-foreign equity joint bank plans to conduct the bank card business upon authorization
of its headquarters, it shall, before conducting such business, report to the local institution dispatched by the CBRC the types
of bank cards which it plans to conduct upon the strength of the pertinent approval documents and the authorization of its headquarters.

9.

The supervision and administration over the bank card business of wholly foreign-funded banks and Chinese-foreign equity joint banks
shall be subject to the related provisions on the administration of bank card business.

All related branches of the CBRC should promptly transmit the present Circular to your sub-branches and the foreign-funded institutions
of foreign-funded banks under your respective jurisdiction.

China Banking Regulatory Commission

June 6, 2007



 
China Banking Regulatory Commission
2007-06-06

 






INTERIM MEASURES FOR THE ADMINISTRATION OF THE ISSUANCE OF RMB BONDS IN HONG KONG SPECIAL ADMINISTRATIVE REGION BY FINANCIAL INSTITUTIONS WITHIN THE TERRITORY OF CHINA

Announcement No. 12, 2007 of the People’s Bank of China and the National Development and Reform Commission

The Interim Measures for the Administration of the Issuance of RMB Bonds in Hong Kong Special Administrative Region by Financial Institutions
Within the Territory of China have been formulated jointly by the People’s Bank of China and the National Development and Reform
Commission. They are hereby promulgated for entry into force.

People’s Bank of China

National Development and Reform Commission

June 8, 2007

Interim Measures for the Administration of the Issuance of RMB Bonds in Hong Kong Special Administrative Region by Financial Institutions
Within the Territory of China

Article 1

In order to further promote the development of RMB business in Hong Kong Special Administrative Region (hereinafter referred to as
Hong Kong) and regulate the issuance of RMB bonds in Hong Kong by financial institutions within the territory of China, the present
Interim Measures are formulated in accordance with the Law of the People’s Republic of China on the People’s Bank of China and other
relevant laws and administrative regulations.

Article 2

Financial institutions within the territory of China herein means the policy banks and commercial banks that are established within
the territory of the People’s Republic of China (excluding those in Hong Kong SAR, Macao SAR or Taiwan Area) according to relevant
laws.

Article 3

RMB bonds herein means the securities that are issued in Hong Kong by financial institutions within the territory of China, valued
by RMB, have a term of one year or more, and for which the principal and interests are repaid according to stipulation. The detailed
term for bond issuance may be determined in light of the macro economic and financial status of the Mainland and the convertibility
process of capital accounts.

Article 4

In the case of issuing RMB bonds in Hong Kong, a financial institution within the territory of China shall submit application materials
to the People’s Bank of China (PBC), and transmit a photocopy thereof to the National Development and Reform Commission (NDRC) as
well. The PBC shall, jointly with the NDRC, verify the qualification and scale of RMB bonds to be issued by financial institutions
within the territory of China in Hong Kong, and report the decision to the State Council.

Article 5

The State Administration of Foreign Exchange (SAFE) shall make registration and statistical monitoring upon the RMB bonds that are
issued in Hong Kong by financial institutions within the territory of China, check and ratify the repayment of principal and interests
by financial institutions within the territory of China as well.

Article 6

In the case of issuing RMB bonds in Hong Kong, a commercial bank shall satisfy the requirements as follows:

1.

It has a sound corporate governance mechanism;

2.

With adequacy ratio of the core capital not less than 4 percent;

3.

It has had continuous profits for the last three years;

4.

It has adequate reserves for loan losses;

5.

Its risk surveillant indicator is consistent with the relevant provisions of the regulatory organ;

6.

It has committed no major illegal or law-breaking act in the last three years; and

7.

Other requirements as prescribed by the PBC.

As for the issuance of RMB bonds in Hong Kong by a policy bank, it shall be handled by referring to the requirements for commercial
banks.

Article 7

The application materials for the issuance of RMB bonds by a financial institution shall include:

1.

an application report concerning the issuance of RMB bonds;

2.

the resolution of the board of directors on the approval of the issuance of RMB bonds or documents with equal legal force;

3.

the scale and term of the bonds to be issued;

4.

the introduction for collecting RMB bonds (with an attachment of issuance scheme);

5.

financial statements of the financial institution within the territory of China for the last three years as audited by certified public
accountants, and the full text of audit opinions in written form;

6.

legal opinions in written form as issued by attorneys;

7.

the (duplicate) photocopy of the Enterprise Legal Person Business License, and the (duplicate) photocopy of the Financial Permit;
and

8.

other documents as required by the PBC.

Article 8

The PBC shall, jointly with the NDRC, make a decision of approval or disapproval to the application for the issuance of RMB bonds
by a financial institution within the territory of China within the time limit as provided in the Administrative License Law of the
People’s Republic of China. The NDRC shall give a reply on the scale of RMB bonds at the same time if approved.

Article 9

A financial institution within the territory of China shall initiate the issuance of RMB bonds in Hong Kong within 60 workdays as
of the approval of the PBC on issuance of RMB bonds, and complete the issuance within the time limit as prescribed. Where a financial
institution within the territory of China fails to complete the issuance within the time limit as prescribed, the document relating
to approving the issuance of RMB bonds shall be invalid automatically, and this issuance of bonds shall not be continued; if it is
necessary to issue such bonds, a new application shall be separately submitted in accordance with the present Interim Measures. The
standards for the completion of issuance within the time limit as prescribed shall be determined in accordance with the legal provisions
of Hong Kong on the administration of the financial market.

Article 10

The financial institution within the territory of China and the underwriting institution shall determine the interest rate or price
for the issuance of RMB bonds through negotiations.

Article 11

A financial institution within the territory of China shall report the circumstances concerning the issuance of RMB bonds to the
PBC, the NDRC and the SAFE within 10 workdays after conclusion of the issuance of RMB bonds, and apply for the registration of bond
funds to the local SAFE branch office subject to the relevant provisions.

Article 12

The funds involving the return of money raised through issuance of RMB bonds by financial institutions within the territory of China
as well as the repayment of principal and interests of bonds shall be transferred through the clearing bank for RMB business in Hong
Kong.

Article 13

A financial institution within the territory of China shall transfer back the money as deducted by relevant issuance expenses to
the Mainland within 30 workdays after the money raised through issuance of RMB bonds is in place, and such money shall be used in
strict accordance with the purposes as disclosed in the introduction.

Article 14

The principal and interests of RMB bonds shall be repaid in RMB. In the case of paying the principal and interests of RMB bonds,
a financial institution within the territory of China shall submit an application to the local SAFE branch office prior to five workdays.
The bank shall go through the formalities for overseas repayment of the principal and interests of RMB bonds for the financial institution
within the territory of China upon an approval document as issued by the local SAFE branch office.

Article 15

With respect to the return of the money as raised through issuance of RMB bonds and the follow-up funds as well as the repayment
of the principal and interests, a financial institution within the territory of China shall make a report on the international balance
of payments in accordance with the Operational Rules for the Overseas Assets, Liabilities, Losses and Proceeds of Financial Institutions
(Hui Guo Fa Zi [1996] No. 13).

Article 16

The sales, trading, registration, trusteeship, settlement of and information disclosure regarding RMB bonds in Hong Kong shall be
subject to the relevant provisions as prescribed by Hong Kong.

Article 17

The present Interim Measures are subject to the interpretation of the PBC.

Article 18

The present Interim Measures shall enter into force as of the promulgation date.



 
People’s Bank of China, National Development and Reform Commission
2007-06-08

 






12Page 2 of 2

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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