1986

INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON CHINESE-FOREIGN EQUITY JOINT VENTURES

Income Tax Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures

Order No.10 of the Chairman of the Standing Committee of the National People’s Congress
September 10, 1980

(Adopted at the Third Session of the Fifth National People’s Congress on September 10, 1980 and promulgated for implementation by
Order No.10 of the Chairman of the Standing Committee of the National People’s Congress on September 10, 1980)

Article 1

Income tax shall be paid in accordance with this Law by Chinese-foreign equity joint ventures (hereinafter referred to as “joint
ventures”) within the territory of the People’s Republic of China on their income from production, business operations and other
sources.

Income tax on the income derived from production, business operations and other sources by branches and subbranches of a joint venture
that are within and outside the territory of China shall be paid by their head office on a consolidated basis.

Article 2

The taxable income of a joint venture shall be the amount remaining from its gross income in a tax year after the costs, expenses
and losses have been deducted.

Article 3

The income tax rate on joint ventures shall be 30%. In addition, a local income tax of 10% of the assessed income tax shall be levied.

The income tax rates on joint ventures exploiting petroleum, natural gas and other resources shall be stipulated separately.

Article 4

In the case of a foreign joint venturer remitting out of China its share of profit obtained from the venture, an income tax of 10%
shall be levied on the remitted amount.

Article 5

A joint venture scheduled to operate for a period of 10 years or more shall, upon approval the tax authorities of an application
filed by the venture, be exempted from income tax in the first two years after it has begun to make a profit and allowed a 50% reduction
in the third through the fifth years.

With the approval ol the Ministry of Finance of the People’s Republic of China, joint ventures engaged in low-profit operations such
as farming and forestry or joint ventures established in remote, economically under-developed areas may be allowed a 15-30% reduction
in income tax for a period of another ten years following the expiration of the term for exemption and reductions prescribed in the
preceding paragraph.

Article 6

A joint venturer which reinvests in China its share of profit obtained from the venture for a period of not less than five years
shall, upon approval by the tax authorities of an application filed by the joint venturer, be refunded 40% of the income tax already
paid on the reinvested amount. If it withdraws the reinvested funds before the end of the fifth year, it shall repay the refunded
tax.

Article 7

Losses incurred by a joint venture in a tax year max, be made up with a corresponding amount drawn from next year’s income. Should
the income in the subsequent tax year be insufficient to make up for the said losses, the balance may be made up with further deductions
from its income year by year, but within a period not exceeding five years.

Article 8

Income tax on joint ventures shall be computed and levied in an annual basis and paid advance in quarterly instalments. Such advance
payments shall be made within 15 days after the end of each quarter, and the final settlement shall be made within five months after
the end of each tax year, with a refund for any overpayment or a supplemental payment for any deficiency.

Article 9

Joint ventures shall file their income tax returns in respect of advance payments with the local tax authorities within the period
prescribed for advance payments, and shall file their annual income tax returns together with the statements of final accounts within
four months after the end of the tax year.

Article 10

Income tax on joint ventures shall be computed in terms of Renminbi (RMB). Income in foreign currency shall be taxed on the equivalent
amount converted into Renminbi according to the exchange rate quoted by the State General Administration of Exchange Control of the
People’s Republic of China.

Article 11

When a joint venture starts operations, changes its line of production, moves to a new site, ceases to operate or assigns its registered
capital, it shall present the relevant certificates for tax registration with the local tax authorities within 30 days after registering
with the General Administration for Industry and Commerce of the People’s Republic of China.

Article 12

The tax authorities shall have the right to inspect the financial, accounting and tax affairs of joint ventures. The joint ventures
must make reports according to the facts and provide all relevant information; they may not refuse to cooperate and may not conceal
the facts.

Article 13

A joint venture must pay its tax within the prescribed time limit. In case of failure to do so, the tax authorities, in addition
to setting a new time limit for tax payment, shall impose a surcharge for overdue payment equal to 0.5% of the overdue tax for every
day in arrears, starting from the first day payment becomes overdue.

Article 14

The tax authorities may, in light of the circumstances, impose a fine on a joint venture which has violated the provisions of Articles
9, 11 or 12 of this Law.

In dealing with any joint venture which has evaded or refused to pay tax, the tax authorities, in addition to pursuing the tax payment,
impose a fine of not more than five times the amount of the tax underpaid or not paid, in accordance with the seriousness of the
case. Cases of gross violation shall be handled by the local people’s courts in accordance with the law.

Article 15

In case of a dispute with the tax authorities over tax payment, a joint venture must pay tax according to the relevant regulations
before applying to higher tax authorities for reconsideration. If it does not accept the decision made after such reconsideration,
it may bring suit in the local people’s court.

Article 16

Income tax paid abroad by a joint venture or its branches or subbranches may be credited against the assessed income tax of the head
office.

When agreements on avoidance of double taxation have been concluded between the Government of the People’s Republic of China and foreign
governments, income tax credits shall be handled in accordance with the provisions of the respective agreements.

Article 17

Rules for the implementation of this Law shall be formulated by the Ministry of Finance of the People’s Republic of China.

Article 18

This Law shall enter into force on the date of promulgation.



 
The Standing Committee of the National People’s Congress
1980-09-10

 







RULES FOR THE IMPLEMENTATION OF THE INCOME TAX LAW CONCERNING CHINESE-FOREIGN EQUITY JOINT VENTURE

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1980-12-14 Effective Date  1980-12-14 Date of Invalidation  1991-07-01


Rules for the Implementation of the Income Tax Law of the People’s Republic of China Concerning Chinese-foreign Equity Joint Venture



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

Ministry of Finance on December 14, 1980) (Editor’s Note: These Rules have
been annulled by Rules for the Implementation of the Income Tax Law of the
People’s Republic of China for Enterprises with Foreign Investment and Foreign
Enterprises promulgated on June 30, 1991 and effective as of July 1, 1991)

    Article 1  These Rules are formulated in accordance with the provisions
of Article 17 of the Income Tax Law of the People’s Republic of China for
Chinese-foreign Equity Joint Ventures (hereinafter referred to as the “Tax
Law”).

    Article 2  “Income derived from production and business operations”
mentioned in Article 1 of the Tax Law means income derived from production
and business operations in the fields of industry, mining, communications,
transportation, agriculture, forestry, animal husbandry, fisheries, poultry
farming, commerce, tourism, catering, service trades and other fields of
production and business operations.

    “Other income” mentioned in Article 1 of the Tax Law means: income from
dividends, bonuses, interest and income from the leasing or transfer of
property, patent rights, proprietary technology, trade mark rights,
copyrights and other such property.

    Article 3  “The local income tax of 10% of the assessed income tax”
mentioned in Article 3 of the Tax Law means the local income tax computed and
imposed on the basis of the actual amount of the income tax paid by a joint
venture.

    A reduction or exemption from the local income tax because of special
reasons shall be decided by the people’s government of the respective
provinces, autonomous regions or municipalities directly under the Central
Government in which the joint venture is located.

    Article 4  A foreign partner in a joint venture which remits its share of
profits obtained from the joint venture shall file a return with the local
tax authorities and the remitting agency shall withhold income tax of equal
10% of the amount remitted. Amounts not remitted shall not be subject to tax.

    Article 5  “The first profit-making year” mentioned in Article 5 of the
Tax Law means the year in which a joint venture begins to realize profits
after the losses, if any, of the initial stage of its operation have been set
off in accordance with the provisions of the Tax Law.

    Article 6  A foreign partner in a joint venture which reinvests its share
of profit obtained from the venture in the same venture or in other
Chinese-foreign equity joint ventures for a period of not less than 5
consecutive years may, on the basis of the certificate of enterprise receiving
such reinvestment, and upon examination, verification by and approval of the
tax authorities to which payment of tax was made, receive refund of 40% of the
income tax already paid on the amount reinvested.

    Article 7  The tax year of a joint venture refers to each year of the
Gregorian calendar commencing January 1 and ending December 31.

    Article 8  The taxable income shall be calculated according to the
following formulas:

    1. Industry:

    a. manufacturing cost for the period = direct materials consumed in
production for the period + direct labor + manufacturing expenses;

    b. cost of the products manufactured for the period = inventory of
semi-finished products and products in process at the beginning of the period
+ manufacturing cost of the period – inventory of semi-finished products and
products in process at the end of the period;

    c. cost of products sold = cost of the products manufactured for the
period + inventory the products at the beginning of the period – inventory of
the products at the end of the period;

    d. not sales = gross sales – (sales returns + sales discounts and
allowances);

    e. profit on sales = net sales – cost of products sold – tax on sales –
cost of sales – (selling expenses + overhead expenses);

    f. taxable income = profit on sales + profit from other operations +
non-operating income – non-operating expenses.

    2. Commerce:

    a. net sales = gross sales – (sales returns + sales discounts and
allowances);

    b. cost of sales = inventory of merchandise at the beginning of the
period + [purchases of merchandise during the period – (purchase returns +
purchase discounts and allowances) + purchase expenses] -inventory of
merchandise at the end of the period;

    c. profit on sales = net sales – tax on sales – cost of sales –
(selling expenses + overhead expenses);

    d. taxable income = profit on sales + profit from other operations +
non-operating income – non-business operating expenses.

    3. Service trades:

    a. net business income = gross business income – (tax on business income
+ operaing expenses + overhead expenses);

    b. taxable income = net business income + non-operating income –
non-operating expenses.

    4. Other lines of business: calculation shall be made with reference to
the above formulae.

    Article 9  The following items shall not be itemized as costs, expenses or
losses in the calculation of the taxable income:

    1. expenditures related to the acquisition or construction of  machinery,
equipment, buildings, facilities and other fixed assets;

    2. expenditures related to the acquisition of intangible assets;

    3. interest on equity capital;

    4. income tax payments and local surtax payments;

    5. fines for illegal business operations and losses caused by the
confiscation of property;

    6. penalties for the overdue payment of taxes and tax fines;

    7. the portion of losses caused by windstorms, floods, fires and other
such disasters, which is compensated by insurance proceeds;

    8. donations other than those for public welfare and relief purposes; and

    9. the portion of the business expenses incurred within the tax year in
excess of either 3 thousandths of gross sales of 10 thousandths of gross
business income and entertainment expenses not relevant to production and
business operations.

    Article 10   The depreciation on fixed assets used by a joint venture
shall be calculated on an annual basis. “Fixed assets of a joint venture”
means buildings, machinery, mechanical apparatuses, means of transport and
other such production equipment having a useful life of 1 year or more.
However, articles having a unit value of 500 yuan or less and a shorter
useful life may be itemized as expenses on the basis of actual consumption.

    Article 11  The valuation of fixed assets shall be based on the original
value.

    For fixed assets regarded as investments, the original value shall be the
price agreed upon by the parties at the time of investment.

    For fixed assets that have been purchased, the original value shall be the
purchase price plus transport expenses, installation expenses and related
expenses incurred prior to the use of the assets.

    For fixed assets that have been manufactured or constructed by the
venture, the original value shall be the actual expenses incurred for
manufacture or construction.

    Article 12  In calculating depreciation of fixed assets, the salvage value
shall be estimated and deducted from the original value; in principle, the
salvage value should be 10% of the original value. In the case of fixed assets
for which it is necessary to retain a lower or no salvage value, the matter
shall be reported to the local tax authorities for approval. Depreciation of
fixed assets shall generally be calculated using the straight-line method of
depreciation.

    Article 13  In the calculation of depreciation, useful life of the various
categories of fixed assets shall be as follows:

    1. for houses and buildings, the minimum useful life shall be 20 years;

    2. for railway rolling stock, boats and machinery and other production
equipment the minimum useful life shall be 10 years; and

    3. for electronic equipment and means of transport other than railway
rolling stock and boats and ships, the minimum useful life shall be 5 years.

    Where, for special reasons, a joint venture needs to accelerate
depreciation or change the method of depreciation, an application may be
submitted to the local tax authorities for examination and then transmitted
level by level to the Ministry of Finance of the People’s Republic of China
for approval.

    Article 14  Expenses incurred on technical innovation which result in an
increase in the value fixed assets in use shall not be itemized as expenses.

    No further depreciation shall be allowed for fixed assets which remain in
use after having been fully depreciated.

    Article 15  The balance of the proceeds realized by a joint venture from
the disposal of fixed assets at current prices shall, after deduction of the
undepreciated amount or the salvage value, be entered into the profit and loss
account for the current year.

    Article 16  Intangible assets such as proprietary technology, patent
rights, trade mark rights, copyrights, rights to the use of sites and other
special rights regarded as investments, shall be amortized starting with the
first year of use on the basis of the amount specified in the agreements or
contracts; intangible assets acquired at a fixed price shall be amortized
starting with the first year of use on the basis of actual cost.

    The above-mentioned intangible assets which have a specified period of use
shall be amortized according to the specified period; intangible assets
without a specified period of use may be amortized over a 10 year period.

    Article 17  Expenses incurred during the period of organization of a
joint venture shall be amortized after the commencement of production or
operation; the amount amortized each year shall not exceed 20% of such
expenses.

    Article 18  Inventory of merchandise, raw materials, products in process
of production, semi-finished products, finished products and by-products
shall be valued at cost. The joint ventures may choose one of the following
methods of calculation: first-in first-out; moving average; or weighted
average. Where a change in the method of calculation is necessary, the matter
shall be reported to the local tax authorities for approval.

    Article 19  Income tax to be paid in quarterly installments as stipulated
in Article 8 of the Tax Low may be calculated on the basis of one-fourth of
either the planned annual porfit for the current year or the actual income of
the preceding year.

    Article 20  Joint ventures, whether realizing profits or losses in a tax
year, shall file their income tax returns and final accounting statements with
the local tax authorities within the prescribed period and shall include the
audit statement of a certified public accountant registered in the People’s
Republic of China.

    The accounting statements submitted by the domestic branches of a joint
venture their head offices shall be filed at the same time with the local tax
authorities for the record.

    Article 21  Joint ventures shall file tax returns within the time limit
set by the Tax Law. In case of failure to submit the tax returns within the
prescribed time limit owing to special reasons, application shall be submitted
to the local tax authorities within the said time limit, and the time limit
may be appropriately extended upon the latter’s approval.

    The final day of the time limit for tax payment and that for filing tax
returns may be postponed to the next business day if it falls on a public
holiday.

    Article 22  Income earned by a joint venture in foreign currencies 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 payment of tax is issued.

    Article 23  In principle, joint ventures shall use the accrual method of
accounting to calculate income and expenditure. All accounting records shall
be accurate and complete and shall be supported by valid vouchers as the basis
for entries.

    Article 24  The financial and accounting procedures of a joint venture
shall be submitted to the local tax authorities for the record.

    Where the financial and procedures of a joint venture are inconsistent
with the provisions of the Tax Law, the tax liability shall be determined
according to the provisions of the Tax Law.

    Article 25  The accounting vouchers, books, statements and reports adopted
by joint ventures shall be kept in the Chinese language, or in both Chinese
and a foreign language.

    Accounting vouchers, books, statements and reports shall be retained for
at least 15 years.

    Article 26  Forms of sales invoices and business receipts used by a joint
venture shall be submitted to the local tax authorities for approval prior to
use.

    Article 27  Officials assigned by the tax authorities to conduct
investigation of the financial, accounting and tax affairs of a joint venture,
shall produce identification cards and undertake to maintain confidentiality.

    Article 28  The tax authorities may, according to the seriousness of the
case, impose a fine of 5,000 yuan or less on a joint venture which violates
the provisions of Article 9, 11 or 12 of the Tax Law.

    Article 29  The tax authorities may impose a fine of 5,000 yuan or less
on a joint venture which has violated the povisions of paragraph 2 of Article
25, or Article 26 of these Rules.

    Article 30  Notice of disposal of a violation shall be served in the cases
in which the tax authorities impose a fine in accordance with provisions of
the Tax Law and these Rules.

    Article 31  When a joint venture applies for reconsideration of a case
in accordance with the provisions of Article 15 of the Tax Law, the tax
authorities concerned shall decide upon the disposition of the case within
3 months after receipt of the application.

    Article 32  Income tax paid to foreign authorities by a joint venture or
its branches on their income received outside China may be credited against
the amount of income tax to be paid by their head office upon presenting the
foreign tax payment certificate. But the credit amount shall not exceed the
tax payable on the income received abroad computed according to the tax rate
prescribed by China’s Tax Law.

    Article 33  Standardized income tax returns and tax payment receipt to be
used by joint ventures shall be printed by the General Taxation Bureau of the
Ministry of Finance of the People’s Republic of China.

    Article 34  The right to interpret these Rules shall reside with the
Ministry of Finance of the People’s Republic of China.

    Article 35  These Rules shall become effective on the same date of
promulgation and effective date of the Income Tax Law of the People’s Republic
of China for Chinese-foreign Equity Joint Ventures.






NATIONALITY LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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