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Home China Laws 1986

1986

RULES FOR THE IMPLEMENTATION OF THE INDIVIDUAL INCOME TAX LAW

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1980-12-14 Effective Date  1980-09-10 Date of Invalidation  1994-01-28


Rules for the Implementation of the Individual Income Tax Law of the People’s Republic of China



(Approved by the State Council on December 10, 1980, promulgated by the

Ministry of Finance on December 14, 1980) (Editor’s Note: The Rules have been
replaced by the Regulation for Implementation of the Individual Income Tax Law
of the People’s Republic of China promulgated by Decree No. 142 of the State
Council on January 28, 1994, according to The Decision of the State Council
Repealing Some Administrative Regulations Promulgated Prior to the End of 1993
promulgated by Decree No. 154 of the State Council on May 16, 1994)

    Article 1  These Rules are formulated in accordance with the provisions
of Article 14 of the Individual Income Tax Low of the People’s Republic of
China (hereinafter referred to as the “Tax Law”).

    Article 2  “Any individual residing for one year or more in the  People’s
Republic of China” mentioned in Article 1 of the Tax Law means any individual
residing in China for 365 days within a tax year. No account shall be taken of
the number of days of temporary absence from Chinese territory during the tax
year.

    The above-mentioned “tax year” means each year of the Gregorian calendar
commencing on January 1 and ending on December 31.

    Article 3  Individuals residing in the People’s Republic of China for 1
year but not exceeding 5 years shall pay individual income tax only on the
portion of income received from sources outside China and remitted to China;
individuals whose period of residence in China exceeds 5 years shall,
commencing with the sixth year, pay tax on all income received from sources
outside China.

    Article 4  The scope of the categories of income mentioned in Article 2 of
the Tax Law shall be as follows:

    1. “Income from wages and salaries” means income from wages, salaries,
awards and year-end bonuses and other such income of individuals working in
agencies, organizations, schools, enterprises, institutions and other such
units.

    “Awards” mentioned in the preceding paragraph shall not include awards for
scientific, technological or cultural achievements.

    2. “Income from remuneration for personal services” means the income of
individuals engaged in designing, installation, drafting, medical practice,
legal practice, accounting, consulting, lecturing, news reporting,
broadcasting, free-lance writing, translating, calligraphy and painting,
sculpture, films, drama and opera, music, dancing, acrobatics, ballad singing
and comic talk, sports and technical services and other such personal services.

    3. “Income from royaties ” means income from the assignment of patent
rights, copyrights, rights to use proprietary technology and other such rights.

    4. “Income from interest, dividends and bonuses” means income from
interest on deposits, loans, and various kinds of bonds and debentures, income
from dividends and bonuses from investments.

    5. “Income from the leasing of property” means income from the leasing of
buildings, machinery and equipment, motorized vehicles and ships and other
kinds of property.

    6. “Other income” means income other than the preceding categories of
income that is subject to tax as determined by the Ministry of Finance of the
People’s Republic China.

    Article 5  The following categories of income from sources within China,
regardless of whether or not the place of payment is in China, shall be
subject to tax in accordance with the provisions of the Tax Law:

    1. Income of individuals from work and personal services performed in
China; however, remuneration obtained from employers outside China by
individuals whose continuous residence in China does not exceed 90 days shall
be exempt from tax.

    2. Dividends and bonuses received from sources within China by
individuals; however, dividends and bonuses derived from Chinese-foreign
equity joint ventures and from urban and rural cooperative organizations shall
be exempt from tax.

    3. Remuneration received by personnel sent to work abroad by governmental
agencies of all levels of the People’s Republic of China.

    4. Royalities and interest obtained from sources within China by
individuals, income from the leasing of property within China and other kinds
of income that are subject to tax as determined by the Ministry of Finance of
the People’s Republic of China.

    Article 6  A taxpayer receiving more than one category of taxable income
as described in Article 2 of the Tax Law shall calculate and pay tax for each
category separately.

    Article 7  A taxpayer receiving taxable income in the form of property or
securities shall calculate and pay tax on the monetary equivalent thereof
which shall be based on the market value at the time the income is received.

    Article 8  “Awards for scientific, technological and cultural
achievements” mentioned in Item 1, Article 4, of the Tax Law means awards
given to individuals by the Chinese Government or by Chinese or foreign
scientific, technological, cultural or other such organizations for inventive
creations in the fields of science, technology and culture.

    Article 9  “Interest on savings deposits in the state banks and credit
cooperatives of the People’s Republic of China” mentioned in Paragraph 2,
Article 4, of the Tax Law shall include interest on savings deposits in
Renminbi and in foreign currencies and interest on saving, deposits in other
banks entrusted by the state banks.

    Dividends received by individuals from investments in local development
(investment) companies in China shall also be exempt from tax if no extra
dividends are paid, provided that the dividends do not exceed the interest
on savings deposits in state banks and credit cooperatives.

    Article 10  “Salaries of diplomatic officials of foreign embassies and
consulates in China” mentioned in Paragraph 7, Article 4 of the Tax Law means
the salaries of diplomats in embassies of foreign countries in China, and of
consuls and other persons enjoying the similar treatment of diplomats.

    The exemption from tax on the salaries of other personnel of the embassies
and consulates of foreign countries in China shall be limited to the same kind
of treatment granted by those countries to other personnel in Chinese
embassies and consulates in those countries.

    Article 11  Individuals who do not reside in China shall pay tax on the
total amount of income received in China from personal services, royalties
and the leasing of property.

    Article 12  “The amount received in a single payment” as income from
remuneration for personal services, royalties or lease of property mentioned
in Article 5 of the Tax law means income from a lump-sum payment or income
from the performance of discrete work (service) assignments and received in a
single payment. Where payments of a continuing nature relating to the same
work (service) assignment cannot be divided into separate payments, all such
payments successively received within a month shall be aggregated as a single
payment.

    Article 13  When two or more persons jointly receive income from the same
source, each person shall separately deduct expenses relating to his
respective share of income in accordance with the provisions of the Tax Law
regarding the deduction of expenses.

    Article 14  Withholding agents making payments that are subject to tax
must withhold to tax in accordance with the provisions of the Tax Law remit
the tax to the Treasury within the time limit and maintain itemized records
for reference purposes.

    The payments subject to tax mentioned in the preceding paragraph shall
include cash payments, payments by remittance, transfer account payments and
cash value of payments made in securities or in kind.

    Article 15  Withholding agents and taxpayers personally filing tax returns
shall file tax returns within the period prescribed by the Tax Law. If, for
special reasons, such returns cannot be filed within the prescribed period, an
application shall be submitted within the prescribed period and, upon approval
by the local tax authorities, the filing period may be extended appropriately.

    The final day of the period for the filing of tax returns and the payment
of tax may be postponed until the next business day if the final day falls on
a public holiday.

    Article 16  Individuals residing in China for one year or more shall
calculate and pay tax on the taxable income received from sources inside China
separately from that received from sources outside China. The amount of taxes
shall be calculated after the deduction of expenses from the various
categories of income in accordance with the provisions of Article 5 of the Tax
Law.

    Taxpayers who have already paid income tax abroad on income received from
sources outside China may, upon presentation of a receipt for payment of the
tax, apply for a credit against the amount of income tax payable as
calculated according to the tax rate prescribed by the Tax Law of China.

    Article 17  Income received by an individual in the currency of a foreign
country shall be taxed on the equivalent amount converted into Renminbi
according to the foreign exchange rate quoted by the State General
Administration of Exchange Control on the day the receipt for the payment of
tax is issued.

    Article 18  Individuals liable to pay tax in China who wish to leave the
country shall pay the tax in full to the local tax authorities 7 days prior to
departure from China; only then may, they proceed with exit formalities.

    Article 19  Officials assigned by the tax authorities to conduct
investigations concerning tax payments by withholding agents or taxpayers
personally filing returns shall produce identification cards and undertake to
maintain confidentiality.

    Article 20  Local tax authorities shall issue income refund notices to
withholding agents each month with respect to the 1% handing fee to be paid to
the withholding agents as provided for in Article 10 of the Tax Law based on
the actual amount of tax withheld and shall complete refunding procedures at
the designated banks.

    Article 21  The tax authorities may, in light of the seriousness of the
case, impose a fine of 500 yuan or less on withholding agents and taxpayers
personally filing returns who violate the provisions of Article 9 of the Tax
Law.

    Article 22  The tax authorities may impose a fine of 500 yuan or less  on
withholding agents and taxpayers personally filing returns who violate the
provisions of Article 14 or 15 of these Rules.

    Article 23  Notice of the disposal of a violation shall be served in those
cases in which the tax authorities impose a fine in accordance with the
provisions of the Tax Law and these Rules.

    Article 24  When withholding agents and taxpayers personally filing
returns apply for reconsideration of a case in accordance with the provisions
of Article 13 of the Tax Law, the tax authorities shall decide upon the
disposal of the case within 3 months after receipt of the application.

    Article 25  Standardized income tax returns and tax payment receipts to be
used by individuals shall be printed by the General Taxation Bureau of the
Ministry of Finance of the People’s Republic of China.

    Article 26  The right to interpret these Rules shall reside with the
Ministry of Finance of the People’s Republic of China.

    Article 27  These Rules shall become effective on the same date of
promulgation and the effective date of the Individual Income Tax Law of the
People’s Republic of China.





ANNOUNCEMENT OF THE GENERAL ADMINISTRATION FOR INDUSTRY AND COMMERCE AND THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA REGARDING THE CRACKING DOWN ON SMUGGLING, SPECULATION, AND PROFITEERING IN IMPORTED AND EXPORTED

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING IMPLEMENTATION OF THE CRIMINAL PROCEDURE LAW

Category  LITIGATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1980-02-12 Effective Date  1980-02-12  


Decision of the Standing Committee of the National People’s Congress Regarding Implementation of the Criminal Procedure Law

(Adopted at the 13th Meeting of the Standing Committee of the Fifth

National People’s Congress on February 12, 1980)

    Acting on a proposal put forward by the Supreme People’s Procuratorate
and the Supreme People’s Court regarding the implementation of the
Criminal Procedure Law, the Standing Committee of the Fifth National
People’s Congress decides that:

    1. Criminal cases filed before December 31, 1979 but not yet decided
shall continue to be handled according to the policies, laws and regulations
and case-handling procedures relevant to criminal proceedings which were
valid before the Criminal Procedure Law went into effect.

    2. Criminal cases accepted after January 1, 1980 shall be handled
according to the provisions of the Criminal Procedure Law. If too many
cases handled by a limited number of personnel prevent some cases from
being concluded within the time limits for investigation, prosecution and
adjudication of first and second instances as prescribed in the Criminal
Procedure Law, the time limits for case-handling during the year 1980 may
be extended upon approval by the standing committees of the pcople’s
congresses of provinces, autonomous regions, and municipalities directly
under the Central Government.





INTERIM PROVISIONS OF THE STATE COUNCIL FOR VETERAN CADRES TO LEAVE THEIR POSTS IN ORDER TO REST

PROVISIONAL REGULATIONS OF THE BANK OF CHINA OF FOREIGN EXCHANGE CERTIFICATE

RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON APPROVING THE INTERIM PROVISIONS OF THE STATE COUNCIL FOR VETERAN CADRES TO LEAVE THEIR POSTS IN ORDER TO REST

Resolution of the Standing Committee of the National People’s Congress on Approving the Interim Provisions of the State Council for
Veteran Cadres to Leave Their Posts in Order to Rest*
(Adopted on September 29, 1980)

____________________ 

*Lixiu ganbu, or “cadres who leave their posts in order to rest,” refers to a specific group of cadres who retire with preferential
treatment. — Trans. 

 

The 16th Meeting of the Standing Committee of the Fifth National People’s Congress decides to approve the Interim Provisions of the
State Council for Veteran Cadres to Leave Their Posts in Order to Rest, which shall be promulgated for implementation by the State
Council. 

Appendix: 

Interim Provisions of the State Council for Veteran Cadres to  

Leave Their Posts in Order to Rest 

(Approved at the 16th Meeting of the Standing Committee of the National People’s Congress on September 29, 1980 and promulgated by
the State Council for implementation on October 7, 1980) 

Through many years of arduous struggle and hard work in revolution and socialist construction, our veteran cadres have made significant
contributions to the country and the people.  They are valuable assets to the Party and the State.  However, as they are
advancing in age, more and more of them are becoming unable to carry on their  regular work. Following the Party’s and the State’s
tradition of showing concern for and taking good care of veteran cadres, the aged and infirm veteran cadres who can no longer do
regular work are being allowed to leave their posts in order to rest (hereinafter referred to as “veteran cadres”), while being held
in high esteem politically and having their well-being well looked after. This is an important measure for the reform and improvement
of our country’s cadre system and an embodiment of the superiority of the socialist system.  It not only benefits the health
of the veteran cadres while enabling them to continue to play a useful role but also facilitates the promotion and growth of younger
cadres.  Hence, the following provisions are formulated. 

Article 1  Aged and infirm cadres in the following categories who can no longer do regular work shall leave their posts in order
to rest: those who joined the revolution during the First or the Second Revolutionary Civil War period; those who joined the revolution
during the War of Resistance Against Japanese Aggression  and now hold a post of deputy county head or other post corresponding
to deputy county head or whose rank is Grade 18 or higher; and those who joined the revolution before the founding of the People’s
Republic of China and now hold a post of deputy prefectural commissioners or other post corresponding to deputy prefectural commissioners
or whose rank is  Grade 14 or higher. 

Cadres who have already retired but meet the qualifications mentioned above shall likewise be treated as veteran cadres. 

Article 2  Approval for cadres to leave their posts in order to rest shall be obtained by their work units from the relevant
departments with the power of appointment and removal of such cadres.  

Article 3  After leaving his post, a veteran cadre shall in general be helped to settle in the locality where he has been working
or in his native place or in the place where his spouse lives. The State shall encourage veteran cadres to settle in the countryside
or in small or medium-sized cities or towns. 

As regards those who wish to leave the province in which they have been working to go to another province, arrangement shall be made
by the provinces concerned through consultation. The number of cadres to be allowed to settle in Beijing, Tianjin or Shanghai shall
be strictly controlled. In the case of cadres who left the interior to work on the Qinghai-Tibet Plateau and who wish to go back
to the interior after retirement, the provinces, autonomous regions and municipalities concerned shall help them settle accordingly. 

Article 4  The affairs of veteran cadres who plan to settle in the locality where they have been working shall be managed by
their original units. Those who plan to settle in other places (including army cadres who have been transferred to civilian work)
shall have their affairs managed by the cadre or personnel departments in the new places.  Small rest homes may be built when
necessary. 

Article 5  After leaving their posts, veteran cadres shall continue to receive their former standard wages (including reserved
wages), and their material benefits shall remain unchanged. As for other welfare benefits, they shall enjoy the same treatment as
active cadres in their locality who hold the same ranks.  Such treatment shall be fully guaranteed.  Veteran cadres shall
also be given priority in medical care, housing, transport and the supply of daily necessities. 

Veteran cadres who became disabled in line of duty and who need assistance in their daily lives may in general receive for nursing
a sum equivalent to the standard wage of a Grade 2 worker at an ordinary engineering enterprise in the locality.  Those who
for long cannot take care of themselves at all for reasons such as paralysis, may be granted an appropriate amount of money for nursing. 
Subsidies may be extended to those who need medical equipment but cannot afford to buy it. 

If cadres who relocate to other provinces after leaving their posts genuinely need to build new houses, their original work units
shall allocate funds to the new areas where they settle, and these areas shall be responsible for building houses for them. 

Cadres’ rest homes or departments directly in charge of a large number of veteran cadres shall be provided with an adequate number
of cars for the convenience of the veteran cadres. 

Article 6  Veteran cadres shall be placed on a list separate from the regular staff of their original units. Their various necessary
expenses shall be borne by their original units. In the case of cadres who have relocated to other provinces, their original units
shall appropriate funds to the cadre or personnel departments of the new places to pay for their expenses. Medical expenses of relocated
veteran cadres shall still be disbursed by their original units; if such expenses have already been paid by the new places, the cadre
or personnel departments there shall include those expenses in their budgets. 

Cadres who relocate shall receive a lump sum of RMB 150 yuan from their original units as a subsidy, and those who settle in production
brigades in the countryside shall receive 300 yuan. When veteran cadres and their immediate family members whom they provide for
relocate, their train or ship tickets, hotel expenses, luggage transportation fees and food subsidies on the journey shall be disbursed
in accordance with the provisions for travelling subsidies to cadres in office. 

After leaving their posts, veteran cadres shall continue to enjoy home leave according to State provisions. In addition, they may
pay one visit to their parents, children or native places, with their round-trip train or ship tickets paid by the State. 

Article 7  When a veteran cadre dies, the burial subsidy, pension for his family and living allowances for his surviving dependants
in financial difficulty shall be granted the same as for active cadres of the same rank.  

Article 8  Leaders and relevant departments at all levels shall concern themselves with the political and cultural life of veteran
cadres and take concrete measures to enable them to read documents and listen to reports like active cadres of the same ranks so
that they may be timely informed about current principles and policies of the Party and the State. Leaders and departments should
hold regular meetings with veteran cadres or visit them, taking heed of their opinions and demands. 

Article 9  Attention shall be giving to developing the veteran cadres useful abilities. Necessary conditions shall be provided
to those who are able to write or dictate revolutionary memoirs. They shall be encouraged to carry forward the revolutionary tradition,
concern themselves with State affairs and the people’s life, report on problems, make suggestions and do such work as is within their
power. 

Article 10  All localities and departments shall give more effective guidance in the work concerning veteran cadres. Departments
at and above the county level shall assign one leading comrade to be in charge of this work. Cadre or personnel departments and units
where there are such veteran cadres shall, when conditions permit, appoint full-time or part-time cadres to make a success of this
work in close cooperation with other relevant departments. It is essential to conduct political and ideological education among those
who are involved in this work, so that they will try their best to help quickly solve the practical problems confronted by veteran
cadres, imparting to them the warm feelings of the Party and the State. Healthy tendencies to hold veteran cadres in high esteem
and take good care of them should be cultivated among the cadres and the masses. 

Article 11  These Provisions shall go into effect as of the month they are issued.  They shall be applicable to cadres
working in Party and government departments, people’s organizations, State enterprises and institutions as well as to State cadres
who have been assigned to work in enterprises and institutions under collective ownership.  Where past provisions are at variance
with these Provisions, these Provisions shall prevail. 

Article 12  Rules for the implementation of these Provisions shall be formulated and issued by the State Personnel Bureau upon
approval by the State Council.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






INTERIM PROCEDURES OF THE STATE IMPORT-EXPORT COMMISSON AND THE MINISTRY OF FOREIGN TRADE OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE SYSTEM OF EXPORT LICENSINGG

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCLL CONCERNING CHINA’S ACCESSION TO THE HAGUE CONVENTION AND THE MONTREAL CONVENTION

Circular of the General Office of the State Councll Concerning China’s Accession to the Hague Convention and the Montreal Convention

     (Effective Date:1980.11.03–Ineffective Date:)

Upon approval by the State Council, China acceded on September 10, 1980 to the Convention Concerning the Checking of the Illegal Hijacking
of Aircraft (hereinafter referred to as “the Hague Convention”) and the Convention Concerning the Checking of Illegal Acts that Jeopardize
Civil Aviation Safety (hereinafter referred to as “the Montreal Convention”) which had been concluded internationally, and declared
at the time of accedence that China shall not be bound by Paragraph 1 of Article 12 of the Hague convention and paragraph 1 of Article
14 of the Montreal Convention and that the signing and rectification of the Conventions by the Taiwan authorities in the name of
China are illegal and Mull and void. The two Conventions became applicable to China on October 10, 1980.

Since the beginning of the 1960s, incidents involving using violence to hijack civil aircraft and damaging civil aviation facilities
have frequently occurred in the world. In order to check such acts of terrorism and safeguard the safety of international civil aviation,
the International Civil Aviation Organization presided in 1963 over the formulation of the Convention Concerning Crimes and Some
Other Acts in Aircraft (hereinafter referred to as “the Tokyo Convention”, to which China acceded in November 1978 upon approval
by the State Council) and, following that it formulated in 1970 and 1971 successively the Hague Convention and the Montreal Convention.
These Conventions are of positive significance to protecting the safety of civil aircraft and other civil aviation facilities.

In recent years, although the incidence of hijacking and other terrorist acts has been reduced in the world, they do occur occasionally;
and on China’s civil aircraft, there have been three attempted hijacking incidents for the purpose of fleeing the country. In order
to ensure the safety in transport for international and domestic airliners and effectively guard against the occurrence of hijacking
and other criminal acts, it is hoped that various regions and competent departments earnestly implement the relevant Articles of
the aforementioned international Conventions (for the translated Chinese version of the Hague Convention and the Montreal Convention,
please see the State Council Bulletin Number 17 of 1980 and, for the translated Chinese version of the Tokyo Convention, please see
the document of the Civil Aviation Administration of China and the Ministry of Foreign Affairs, Ref.: (78) Zhijizi No. 591), heighten
their vigilance, tighten the ground security check and the on board security protection measures and strictly prevent any attempt
to use violence to hijack aircraft or damage civil aviation facilities so as to guarantee the safety in China’s civil aviation. In
the event that incidents should occur involving foreign countries such as hijacked foreign aircraft landing in China, the matter
should be handled properly in accordance with the law of China and with reference to the relevant provisions of the aforementioned
three Conventions.

    





TRIAL PROCEDURES FOR MONITORING INFECTIOUS DISEASES IN BORDER PORTS

INTERIM PROVISIONS OF THE STATE COUNCIL OF THE PEOPLE’S REPUBLIC OF

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1980-10-30 Effective Date  1980-10-30  


Interim Provisions of the State Council of the People’s Republic of



China on the Administration of Resident Representative Offices of Foreign
Enterprises

(Promulgated by the State Council on October 30, 1980)

    Article 1  These Provisions are formulated with a view to facilitating
the development of international economicand trade contacts and the
administration of resident Representative offices in China of foreign
companies, enterprises and other economic organizations (hereinafter referred
to as “foreign enterprises”).

    Article 2  Any foreign enterprise desiring to establish a resident
representative office in China shall file an application for permission and,
after securing approval, go through the registration procedure. No residence
representative office to be established is allowed to start business
activities as such before approval and registration.

    Article 3  When applying for permission to establish a resident
representative office in China, a foreign enterprise shall submit the
following certificates and papers:

    a) An application form signed by the chairman of the board of directors or
the general manager of the enterprise. The application form shall include such
details as the name of the resident representative office to be established,
the name(s) of the responsible staff member(s), the scope of activity,duration
and site of the office;

    b) The legal document sanctioning the operation of that enterprise issued
by the authorities of the country or the region in which that enterprise
operates;

    c) The capital creditability document(s) issued by the financial
institution(s) having business contacts with that enterprise; and

    d) The credentials and resumes of the staff members of the resident
representative office appointed by that enterprise.

    A banking or insurance institution which desires to open a resident
representative office shall, apart from submitting the certificates and papers
as specified in Paragraphs a, b and d, submit at the same time an annual
report showing the assets and liabilities and losses and profits of teh head
office of that institution, its articles of association and the composition
of its board of directors.

    Article 4  Foreign enterprises wishing to establish residence
representative offices shall, according to their respective lines of business,
apply to one of the following departments for approval:

    a) A trading or manufacturing enterprise or a shipping agency shall apply
to the Ministry of Foreign Trade of the People’s Republic of China;

    b) A financial or insurance institution shall apply to the People’s Bank
of China;

    c) A maritimke shipping enterprise or a maritime shipping agency shall
apply to the Ministry of Communications of the People’s Republic of China;

    d) An air transport enterprise shall apply to the General Administration
of Civil Aviation of China;

    e) Enterprises outside these lines of business shall, according to the
nature of their operations, apply to the competent commissions, ministries or
bureaus under the Government of the People’s Republic of China.

    Article 5  When granted approval to establish a resident office, a foreign
enterprise shall, within 30 days as of the date of approval, approach the
State Administration for Industry and Commerce of the People’s Republic of
china, on the strength of the approval document, for going through the
registration procedure. The enterprise shall fill in a registration form, pay
registration fee and receive a registration certificate. the original approval
document shall be recalled in case of failure to register at the expiry of
the specified period.

    Article 6  After the approval for the establishment of a resident
representative office is granted in accordance with the stipulations in
Article 4, the staff members of that office and their families shall, on the
strength of the approval document, go through the necessary formalities with
the local public security organ to obtain residence permits.

    Article 7  When a resident representative office is to change its name,
responsible member(s), scope of operation, duration or address, it shall
apply to the original approving department and, after securing approval,
approach the State Administration for Industry and Commerce, on the strength
of the approval document, for going through the procedure for effecting
changes in registration and pay the fees. It shall also go through the
procedures with the local public security organ for changes of residence
permits.

    Article 8  A residence representative resident office shall, on the
strength of the registration certificates and in accordance with the relevant
stipulations of the Bank of China, open an account at the Bank of China or at
any bank designated by the Bank of China.

    Article 9  A resident representative office and its staff members shall,
in accordance with the stipulations of China’s tax laws, go through the tax
registration procedure with the local tax office and pay taxes accordingly.

    Article 10  A resident representative office and its staff members shall
declare to China’s Customs the imported office articles, articles for daily
use and means of transport and pay customs duties and the consolidated
industrial and commercial taxes as stipulated.

    Imported vehicles and ships shall be registered with the local public
security organ for obtaining the licence plates and permits. Dues shall be
paid to the local tax office for the use of the vehicles and ships.
Unauthorized transferor sale of the above-mentioned imported goods is not
permitted. Where the need to effect a transfer or sale arises, an application
shall be submitted to the Customs for approval before such transfer or sale
can be effected. Such imported goods can be sold only to designated shops.

    Article 11  A resident representative office shall entrust local service
units for foreigners or other service units designated by the Chinese
Government with such matters as renting a house or engaging the service of
Chinese personnel.

    Article 12  The Government of the People’s Republic of China shall
undertake to protect, in accordance with the law, the legitimate rights and
interests of resident representative offices and their staff members and give
them facilities in their normal business activities.

    Article 13  Resident offices are not allowed to install radio stations on
Chinese territory. They shall apply to the local telecommunications bureaus
for the renting of such commercial communications lines or communications
equipment as may be necessary for their business operations.

    Article 14  The staff members of a resident representative office and
their families shall abide by Chinese laws, decrees and relevant regulations
in all their activities in China and in entering and leaving China.

    Article 15  In case a resident representative office and its members
violate these Provisions or engage in other activities in contravention of
Chinese laws, the Chinese authorities have the power to look into the cases
and deal with them in accordance with the law.

    Article 16  A resident representative office, when the duration of
its operation expires, or if it decides
to end its business activities before the due date, shall notify in writing
the original
approving department 30 days in advance of the termination of its operation.
After clearing up nits debts, paying its taxes and winding up other related
matters, the resident office shall go through the formalities with the
original registration certificate-issuing department fo cancelling the
registration and turn in the certificate.

    The foreign enterprise which the said resident representative office
represented, shall continue to be held responsible for any matter that the
said residence representative office may leave unfinished at the time of its
termination.

    Article 17  Those resident representative offices that have already been
established with approval shall, within 30 days of the promulgation of these
Provisions, go through the procedure of registration with the State
Administration for Industry and Commerce of the People’s Republic of China on
the strength of their documents of approval.

    Article 18  Any other matter that may not be covered in these Provisions
shall be handled in accordance with the relevant Chinese laws, decrees and
regulations.

    Article 19  Matters relating to resident representatives to be institued
by foreign enterprises shall be dealt with by applying mutandis these
Provisions applicable to the establishment of resident representative offices.

    Article 20  These Provisions shall enter into effect as of the date of
promulgation.





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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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