DETAILED RULES AND REGULATIONS FOR THE IMPLEMENTATION OF THE INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING JOINT VENTURES WITH CHINESE AND FOREIGN INVESTMENT
INCOME TAX LAW CONCERNING CHINESE-FOREIGN EQUITY JOINT VENTURES
| Category | TAXATION | Organ of Promulgation | The National People’s Congress | Status of Effect | With An Amendment Existing |
| Date of Promulgation | 1980-09-10 | Effective Date | 1980-09-10 |
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Income Tax Law of the People’s Republic of China Concerning Chinese-foreign Equity Joint Ventures |
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(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) (Editor’s Note: For the revised text, see Decision of the
Standing Committee of the National People’s Congress Regarding Revision of
the Income Tax Law of the People’s Republic of China Concerning
Chinese-Foreign Equity Joint Ventures promulgated on September 2, 1983)
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 go into effect on the day of its promulgation.
PROVISIONS ON LABOUR MANAGEMENT IN CHINESE-FOREIGN EQUITY JOINT VENTURES OF THE PEOPLE’S REPUBLIC OF CHINA
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20011006
The State Council Provisions on Labour Management in Chinese-foreign Equity Joint Ventures of the People’s Republic of China the State Council July 26, 1980 Article 1 Labour management problems concerning Chinese-foreign equity joint ventures (hereinafter referred to as “joint ventures”) shall all Article 2 Matters pertaining to employment, dismissal and resignation of the workers and staff members, tasks of production and other work, A labour contract is to be signed by a joint venture and the trade union organization in the joint venture collectively. A relatively A signed labour contract must be submitted to the labour management department of the government of the province, autonomous region Article 3 The workers and staff members of a joint venture either recommended by the authorities in the locality in charge of the joint venture Joint ventures may run workers’ schools and training courses to train managerial personnel and skilled workers. Article 4 With regard to the workers and staff members who become redundant as a result of changes in production and technical conditions of The dismissed workers and staff members will be assigned to other jobs by the authorities in charge of the joint venture or the labour Article 5 The joint venture may, according to the degree of seriousness of the case, take action against those workers or staff members whose Article 6 With regard to the dismissal and punishment of workers and staff members by the joint venture, the trade union has the right to raise Article 7 When workers and staff members of a joint venture, on account of special circumstances, submit their resignation to the enterprise Article 8 The pay levels of workers and staff members in a joint venture shall be determined at 120-150% of the real wages of workers and staff Article 9 The wage standards, the forms of payment, and bonus and subsidy systems are to be discussed and decided by the board of directors. Article 10 The rewards and welfare funds drawn by the joint venture from the profits must be used as rewards and collective welfare and shall Article 11 A joint venture must pay for the Chinese workers’ and staff members’ labour insurance, cover their medical expenses and various kinds Article 12 The employment of foreign workers and staff members and their dismissal, resignation, pay, welfare and social insurance and other Article 13 Joint ventures must implement the relevant rules and regulations of the Chinese Government on labour protection and ensure safety Article 14 Labour disputes occurring in a joint venture shall first of all be solved through consultation by the two parties. If consultation Article 15 The power of interpretation of these Provisions resides in the State Bureau of Labour of the People’s Republic of China. Article 16 These Provisions shall enter into force as of the date of promulgation. |
The State Council
1980-07-26
RULES FOR THE IMPLEMENTATION OF THE INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON CHINESE-FOREIGN EQUITY JOINT VENTURES
|
19801210The State Council19910701
The Ministry of Finance Rules for the Implementation of the Income Tax Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures The Ministry of Finance December 14, 1980 (Approved by the State Council on December 10, 1980 , Promulgated by the Ministry of Finance on December 14, 1980) 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 Article 2 “Income derived from production and business operations” mentioned in Article 1 of the Tax Law means income derived from production “Other income” mentioned in Article 1 of the Tax Law means: income from dividends, bonuses, interest and income from the leasing 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 A reduction or exemption from the local income tax because of special reasons shall be decided by the people’s governments of the 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 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 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 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 c. cost of products sold = cost of the products manufactured for the period + inventory the products at the beginning 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 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 + operating 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 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” 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 For fixed assets that have been manufactured or constructed by the venture, the original value shall be the actual expenses incurred Article 12 In calculating depreciation of fixed assets, the salvage value shall be estimated and deducted from the original value; in principle, 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 Where, for special reasons, a joint venture needs to accelerate depreciation or change the method of depreciation, an application 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 Article 16 Intangible assets such as proprietary technology, patent rights, trade mark rights, copyrights, rights to the use of sites and other The above-mentioned intangible assets which have a specified period of use shall be amortized according to the specified period; intangible Article 17 Expenses incurred during the period of organization of a joint venture shall be amortized after the commencement of production or Article 18 Inventory of merchandise, raw materials, products in process of production, semi-finished products, finished products and by-products 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 Article 20 Joint ventures, whether realizing profits or losses in a tax year, shall file their income tax returns and final accounting statements The accounting statements submitted by the domestic branches of a joint venture their head offices shall be filed at the same time 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 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 Article 22 Income earned by a joint venture in foreign currencies shall be taxed on the equivalent amount converted into Renminbi according to Article 23 In principle, joint ventures shall use the accrual method of accounting to calculate income and expenditure. All accounting records 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 Article 25 The accounting vouchers, books, statements and reports adopted by joint ventures shall be kept in the Chinese language, or in both 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 Article 27 Officials assigned by the tax authorities to conduct investigation of the financial, accounting and tax affairs of a joint venture, 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 Article 29 The tax authorities may impose a fine of 5,000 yuan or less on a joint venture which has violated the provisions of paragraph 2 of 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 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 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 Article 33 Standardized income tax returns and tax payment receipt to be used by joint ventures shall be printed by the General Taxation Bureau 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 enter into force on the same date of promulgation and effective date of the Income Tax Law of the People’s Republic |
The Ministry of Finance
1980-12-14
INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT
REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON LABOUR MANAGEMENT IN JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT
RULES FOR THE IMPLEMENTATION OF THE INDIVIDUAL INCOME TAX LAW OF THE PEOPLE’S REPUBLIC OF CHINA
INTERIM REGULATIONS ON FOREIGN EXCHANGE CONTROL
| Category | BANKING | Organ of Promulgation | The State Council | Status of Effect | Invalidated |
| Date of Promulgation | 1980-12-18 | Effective Date | 1981-03-01 | Date of Invalidation | 1996-04-01 |
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Interim Regulations on Foreign Exchange Control of the People’s Republic of China |
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Chapter I General Provisions
Chapter II Foreign Exchange Control Relating to State Units and
Chapter III Foreign Exchange Control Relating to Individuals
Chapter IV Foreign Exchange Control Relating to Foreign Resident
Chapter V Foreign Exchange Control Relating to Enterprises with Overseas
Chapter VI Control Relating to Carrying Foreign Exchange, Precious Metals
Chapter VII Supplementary Provisions
(Promulgated by the State Council on December 18, 1980)(Editor’s Note:
These Regulations have been annulled by Regulations of the People’s Republic
of China on Foreign Exchange Control promulgated on January 29, 1996 and
effective as of April 1, 1996)
Chapter I General Provisions
Article 1 These Regulations are formulated for the purpose of
strengthening foreign exchange control, increasing national foreign
exchange income and economizing on foreign exchange expenditure so as to
facilitate the development of national economy and safeguard the rights and
interest of the country.
All foreign exchange income and expenditure, the issuance and circulation
of all kinds of payment instrument in foreign currency, and the carrying of
foreign exchange, precious metals and payment instruments in foreign currency
into and out of the territory of the People’s Republic of China shall be
governed by these regulations.
Article 2 Foreign exchange mentioned in these Regulations refers to:
a. foreign currencies,including banknotes, coins, etc.
b. securities in foreign currency, including government bonds, treasury
bills, corporate bonds and debentures, stocks, and interest coupons, etc.
c. instruments payable in foreign currency, including bills, drafts,
cheques, bank deposit certificates, postal savings certificates, etc.
d. other foreign exchange funds.
Article 3 The People’s Republic of China pursues the policy of
centralized control and unified management of foreign exchange by the State.
The administrative agency of the People’s Republic of China in change of
foreign exchange control is the State Administration of Foreign Exchange
Council (SAFEC) and its branch offices.
The specialized bank of the People’s Republic of China engaged in foreign
exchange business is the Bank of China. No other financial institution shall
engage in foreign exchange business, unless approved by the SAFEC.
Article 4 All Chinese and foreign organizations or individuals within the
territory of the People’s Republic of China must, unless otherwise stipulated
by law, decrees and these Regulations, sell their foreign exchange to the Bank
of China. Any foreign exchange they required is to be sold to them by the Bank
of China in accordance with the plans approved by the State or with relevant
provisions.
The circulation, use and mortgage of foreign currency, the unauthorized
sales and purchases of foreign exchange, and the unlawful procurement of
foreign exchange or evasion of foreign exchange control by whatever means are
prohibited within the territory of the People’s Republic of China.
Chapter II Foreign Exchange Control Relating to State Units and
Collective Economic Organizations
Article 5 All the foreign exchange incomes and expenditures of State
organs, units of the armed forces, nongovernmental bodies, schools, State
enterprises, institutions and urban and rural collective economic
organizations within China’s territory (hereinafter referred to as
organizations within territory) are all subject to planned control.
Organizations within territory are permitted to hold their retained
foreign exchange in accordance with the relevant provisions.
Article 6 Unless approved by the SAFEC or its branch offices,
organizations within territory shall not possess foreign exchange; deposit
foreign exchange abroad; offset foreign exchange expenditure against foreign
exchange income; or use the foreign exchange belonging to State organs
stationed abroad or enterprises and institutions established in foreign
countries or in the Hong Kong and Macao regions by the State, by way of
borrowing or acquisition.
Article 7 Unless approved by the State Council, organizations within
territory shall not issue securities with foreign exchange value inside or
outside China.
Article 8 With regard to loans to be accepted by organizations within
territory from banks or enterprises in foreign countries or in the Hong Kong
and Macao regions, the relevant competent departments under the State Council
or the relevant people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall consolidate and
draw up overall annual plans for such loans which must be submitted to the
SAFEC and the Foreign Investment Control Commission for examination and
transmission to the State Council for approval.
The measures for examining and approving such loans shall be prescribed
separately.
Article 9 Any foreign exchange held by organizations within territory,
including their retained foreign exchange, non-trade foreign exchange and
foreign exchange under compensatory trade received in advance and reserved for
later payments, funds borrowed in convertible foreign currencies and other
foreign exchange held with the approval of the SAFEC or its branch offices
must be placed in foreign currency deposit accounts or foreign currency quota
accounts to be opened with the Bank of China, and must be used within the
prescribed scope and be subject to the supervision of the Bank of China.
Article 10 When organizations within territory import or export goods,
the banks handling the transactions shall check their foreign exchange
receipts and payments either against the import or export licenses duly
verified by the Customs or against the Customs declaration forms for imports
or exports.
Article 11 State organs stationed abroad must use foreign exchange
according to the plan approved by the State.
The profits derived from their business operations by enterprises and
institutions established in foreign countries or in the Hong Kong and Macao
regions, except for the portion kept there as working funds according to the
plan approved by the State, must be transferred back on schedule and be sold
to the Bank of China.
No organization stationed abroad is permitted to keep foreign exchange
for organizations within territory without authorization.
Article 12 Delegations and working groups sent temporarily to foreign
countries or to the Hong Kong and Macao regions must use foreign exchange
according to their respective specific plans, and must, upon completion of
their missions and return, promptly transfer back to China their surplus
foreign exchange to be checked by and sold to the Bank of China.
Foreign exchange earned in their various business activities by the
delegations and working groups mentioned in the preceding paragraph and by
members thereof, must be promptly transferred back to China and must not be
kept abroad without the approval of the SAFEC or its branch offices.
Chapter III Foreign Exchange Control Relating to Individuals
Article 13 Foreign exchange remitted from foreign countries or from the
Hong Kong and Macao regions to Chinese, foreign nationals and stateless
persons residing in China must be sold to the Bank of China, except the
portion retained as permitted by the State.
Article 14 Chinese, foreign nationals and stateless persons residing in
China shall be permitted to keep in their own possession foreign exchange
already in China.
The foreign exchange mentioned in the preceding paragraph shall not,
without authorization, be carried or sent out of China either by owners or
by others or by post.
If the owners need to sell the foreign exchange, they must sell it to the
Bank of China and are permitted to retain a portion of the foreign exchange
according to the percentage prescribed by the State.
Article 15 When the foreign exchange that has been kept in foreign
countries or in the Hong Kong and Macao regions by Chinese residing in China
prior to the founding of the People’s Republic of China, by overseas Chinese
prior to their returning to and settling down in China, or by Hong Kong and
Macao compatriots prior to their returning to and settling down in their
native places, is transferred to China, the owners shall be permitted to
retain a portion of the foreign exchange according to the percentage
prescribed by the State.
Article 16 When the foreign exchange belonging personally to individuals
sent to work or study in foreign countries or in the Hong Kong and Macao
regions is remitted or brought back to China, the owners, upon the completion
of their missions and return, shall be permitted to retain the entire amount
of the foreign exchange.
Article 17 The percentages of foreign exchange retention permitted under
Articles 13, 14, and 15 of these Regulations shall be prescribed separately.
Foreign exchange retained by individuals as permitted under Articles 13,
14,15, and 16 of these Regulations must be deposited with the Bank of China.
These foreign exchange deposits may be sold to the Bank of China or remitted
out of China through the Bank of China, or taken out of China against
certification by the Bank of China. It is however not permitted, without
authorization, to carry or send deposit certificates out of China either by
holders or by others or by post.
Article 18 The foreign exchange remitted or brought into China from
foreign countries or from the Hong Kong and Macao regions by foreign nationals
coming to China, by overseas Chinese and Hong Kong and Macao compatriots
returning for a short stay, by foreign experts, technicians, staff members and
workers engaged to work in organizations within China, and by foreign students
and trainees, may be kept in their own possession, or sold to or deposited
with the Bank of China, or remitted or taken out of China.
Article 19 Chinese, foreign nationals and stateless persons residing
in China may apply to the local branch offices of the SAFEC for the purchase
of foreign exchange to be remitted or taken out of China. Upon approval of
such applications, the required foreign exchange shall be sold to the
applicants by the Bank of China.
When foreign experts, technicians, staff members and workers engaged to
work in organizations within territory are to remit or take out of China their
foreign exchange, the Bank of China shall handle the matter in accordance with
the stipulations as provided in the relevant contracts or agreements.
Chapter IV Foreign Exchange Control Relating to Foreign Resident
Representative Offices in China and Their Personnel
Article 20 Foreign exchange remitted or brought into China from foreign
countries or from the Hong Kong and Macao regions by foreign diplomatic
missions, consular posts, commercial offices, offices of international
organization and nongovernmental bodies resident office in China, foreign
diplomatic and consular officers as well as other resident staff members of
the aforesaid missions, posts and offices, may be kept in their own
possession, or sold to or deposited with the Bank of China, or remitted or
taken out of China.
Article 21 The conversion into foreign currency, if required, of visa
and certification fees received in Renminbi from Chinese citizens by foreign
diplomatic missions and consular posts in China, is subject to approval by
the SAFEC or its branch offices.
Chapter V Foreign Exchange Control Relating to Enterprises with Overseas
Chinese Capital, Foreign-Capital Enterprises, and Chinese-Foreign Equity
Joint Ventures and Their Personnel
Article 22 All foreign exchange receipts of enterprises with overseas
Chinese capital, foreign-capital enterprises and Chinese-foreign equity joint
ventures must be deposited with the Bank of China, and all their foreign
exchange disbursements must be effected from their foreign exchange deposit
accounts.
The enterprises mentioned in the preceding paragraph must periodically
submit their statements of foreign exchange business to the SAFEC or its
branch offices, all of which are empowered to check on the movements of the
foreign exchange receipts and payments of these enterprises.
Article 23 Except where otherwise approved by the SAFEC or its branch
offices, Renminbi shall in all cases be used in the settlement of accounts
between enterprises with overseas Chinese capital, foreign-capital
enterprises, Chinese-foreign equity joint ventures on the one hand and other
enterprises or individuals residing in the People’s Republic of China on the
other hand.
Article 24 Enterprises with overseas Chinese capital, foreign-capital
enterprises and foreign joint venturers in Chinese-foreign equity joint
ventures may apply to the Bank of China for remitting abroad their net profits
as well as other legitimate earnings after taxation according to law, by
debiting the foreign exchange deposit accounts of the enterprises concerned.
Where the enterprises and foreign joint venturers mentioned in the
preceding paragraph are to transfer foreign exchange capital abroad, they
shall apply to the SAFEC or its branch offices for the transfer by debiting
the foreign exchange deposit accounts of the enterprises concerned.
Article 25 An amount not exceeding 50% of their after-tax legitimate net
earnings from wages, etc. may be remitted or taken out of China in foreign
currency by staff members and workers of foreign nationality and those from
the Hong Kong and Macao regions employed by enterprises with overseas Chinese
capital, foreign-capital enterprises and Chinese-foreign equity joint ventures.
Article 26 Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures which wind up operations
in accordance with legal procedure, shall be responsible for the liquidation,
within the scheduled period, of their outstanding liabilities and taxes due in
China under the joint supervision of the relevant competent departments and
the SAFEC or its branch offices.
Chapter VI Control Relating to Carrying Foreign Exchange, Precious Metals
and Payment Instruments in Foreign Currency into and out of China
Article 27 No restriction as to the amount is imposed on the carrying
into China of foreign exchange, precious metals and objects made from them,
but declaration to the Customs is required at the place of entry.
To carry out of China foreign exchange or the foreign exchange previously
brought in shall be permitted by the Customs against certification by the
Bank of China or against the original declaration form filled out at the time
of entry.
To carry out of China precious metals and objects made from them or the
precious metals and objects made from them previously brought in shall be
permitted by the Customs according to the specific circumstances as prescribed
by State regulations or against the original declaration form filled out at
the time of entry.
Article 28 To bring into China Renminbi traveller’s cheques, traveller’s
letters of credit and other Renminbi payment instruments convertible into
foreign currency shall be permitted by the Customs against the declaration
form filled out at the Customs; and to take the same out of China shall be
permitted by the Customs against certification by the Bank of China or against
the original declaration form filled out at the time of entry.
Article 29 Unless otherwise approved by the SAFEC or its branch offices,
it is not permitted to carry or send out of China by holders or by others or
by post such certificates and deeds held by Chinese residing in China as
bonds, debentures, share certificates issued abroad; post_title deeds for real
estate abroad; other documents or deeds involving the disposal of creditor’s
right, inheritance, real estate or other foreign exchange assets abroad.
Article 30 The carrying or sending out of China of Renminbi instruments,
such as Renminbi cheques, drafts, passbooks and deposit certificates, held by
Chinese or foreign nationals or stateless persons residing in China, is not
permitted, either by holders or by others or by post.
Chapter VII Supplementary Provisions
Article 31 All units and individuals have the right to report any
violation of these Regulations. Rewards shall be given to such units or
individuals according to the merits of the report. Violators shall be
penalized by the SAFEC, its branch offices or by public security organs, or by
administrative departments of industry and commerce, or by the Customs. In
light of the seriousness of the offence, the penalties may take the form of
compulsory exchange of the foreign currency for Renminbi, or fine or
confiscation of the properties or both, or punishment by judicial organs
according to law.
Article 32 The exchange control measures for special economic zones, for
frontier trade and for personal dealings between inhabitants across the border
shall be formulated, in accordance with these Regulations, by the people’s
governments of the provinces, autonomous regions and municipalities directly
under the Central Government in the light of actual local conditions, be
submitted to the State Council for approval and be enforced thereupon.
Article 33 Rules for the implementation of these Regulations shall be
formulated by the SAFEC.
Article 34 These Regulations shall enter into effect on March 1, 1981.
REGULATIONS ON SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE
| Category | SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES | Organ of Promulgation | The Standing Committee of the National People’s Congress | Status of Effect | In Force |
| Date of Promulgation | 1980-08-26 | Effective Date | 1980-08-26 |
|
Regulations on Special Economic Zones in Guangdong Province |
|---|
Contents
Chapter I General Provisions
Chapter II Registration and Operation
Chapter III Preferential Treatment
Chapter IV Labour Management
Chapter V Administrative Organization
Chapter VI Supplementary Provisions
(Approved for implementation at the 15th Meeting of the Standing
Committee of the Fifth National People’s Congress on August 26, 1980)
Contents
Chapter I General Provisions
Chapter Il Registration and Operation
Chapter III Preferential Treatment
Chapter IV Labour Management
Chapter V Administrative Organization
Chapter VI Supplementary Provisions
Chapter I General Provisions
Article 1 In order to develop economic cooperation and technical
exchanges with foreign countries and to promote the socialist modernization
programme, certain areas shall be delineated respectively in the three cities
of Shenzhen, Zhuhai and Shantou in Guangdong Province for the establishment
of special economic zones (hereinafter referred to as “special zones”), The
special zones shall encourage foreign citizens, overseas Chinese, compatriots
from Hongkong and Macao and their companies and enterprises (hereinafter
referred to as” investors”) to open factories and set up enterprises and
other establishments with their own investment or in joint ventures with our
side, and shall protect their assets, the profits due them and their other
lawful rights and interests in accordance with the law.
Article 2 Enterprises and individuals in the special zones must abide by
the laws, decrees and pertinent provisions of the People’s Republic of China.
Where there are specific provisions in these Regulations, they shall be
observed accordingly.
Article 3 A Guangdong Provincial Committee for the Administration of
Special Economic Zones shall be set up to exercise unified administration of
the special zones on behalf of the Guangdong Provincial People’s Government.
Article 4 The special zones shall provide investors with a wide scope of
operation, create favourable operating conditions and guarantee them stable
business sites. Investors may establish, with their own investment or in
joint ventures with our side, all projects that have positive significance
for international economic cooperation and technical exchanges, including
industry, agriculture, animal husbandry, aquaculture, tourism, housing and
construction, and research and manufacture involving high technology, as
well as other
businesses of common interest to investors and to our side.
Article 5 Land-levelling projects and various public works in the
special zones such as water supply, drainage, power supply, roads, wharves,
communications and warehouses shall be undertaken by the Guangdong Provincial
Committee for the Administration of Special Economic Zones. When necessary,
foreign investment may be used in building these projects.
Article 6 Each of the special zones shall invite Chinese and foreign
specialists and relevant personages who are enthusiastic about China’s
modernization programme to form an advisory committee that will serve as a
consultative body for that special zone.
Chapter II Registration and Operation
Article 7 Investors wishing to open factories or set up various economic
undertakings in the special zones with their own investment shall apply to the
Guangdong Provincial Committee for the Administration of Special Economic
Zones, which shall issue them registration certificates and land use
certificates after examination and approval.
Article 8 Investors may open accounts and conduct their foreign exchange
transactions with the Bank of China established in the special zones or with
other banks established there with the approval of the Chinese side.
Investors may take out various kinds of insurance policies at the
People’s insurance Company of China in the special zones or at other
insurance companies established there with the approval of the Chinese side.
Article 9 Products of the enterprises in the special zones shall be sold
on the international market. If their products are to be sold in the interior
of China, they must have the approval of the Guangdong Provincial Committee
for the Administration of Special Economic Zones and go through the
procedures for paying customs duties.
Article 10 Investors may operate their enterprises independently in the
special zones and employ foreign personnel for technical and managerial work.
Article 11 If an enterprise established by an investor in the special
zones wishes to terminate operations before its scheduled expiration, it
shall report the reasons to the Guangdong Provincial Committee for the
Administration of Special Economic Zones, go through termination procedures
and settle claims and debts. After termination of operations, its assets may
be assigned and its funds may be remitted out of China.
Chapter III Preferential Treatment
Article 12 Land in the special zones is owned by the People’s Republic of
China. The land to be used by investors shall be provided according to actual
needs, and preferential treatment shall be given with respect to the duration
of its use, the amount of the use fee and the method of payment according to
the different types of business and uses. Provisions for specific measures
shall be made separately.
Article 13 The machinery and equipment, spare parts, raw and
semi-processed materials, means of transportation and other capital goods
necessary for production that are imported by enterprises in the special zones
shall be exempted from import duties. The necessary consumer goods may either
be subjected to import duties or allowed a reduction or exemption therefrom,
depending on the specific situation of each case. When the above-mentioned
goods are imported or products of the special zones are exported, a customs
declaration shall be filed.
Article 14 The enterprise income tax rate in the special zones is 15
percent. Special preferential treatment shall be given to enterprises
established within two years of the promulgation of these Regulatins, to
enterprises with an investment US$ 5 million or more, and to enterprises
involving higher technology or having a longer period of capital turnover.
Article 15 The lawfuI profit that an investor receives after payment of
the enterprise income tax, and the wages and salaries and other legitimate
earnings that foreign, overseas Chinese and Hongkong and Macao workers and
staff members of an enterprise in the special zones receive after payment of
the individual income tax, may be remitted abroad through the Bank of China
or other banks in the special zones, in accordance with the provisions of the
foreign exchange control measures of the special zones.
Article 16 An investor that reinvests its share of the profit in the
special zones for a period of five years or longer may apply for a reduction
of or an exemption from income tax on the reinvested portion.
Article 17 Enterprises in the special zones shall be encouraged to use
machinery and equipment, raw and semi-processed materials and other materials
produced in China, and preferential prices shall be offered on the basis of
China’s current export prices for the same kinds of commodities, using
foreign exchange to settle accounts. These products and materials may be
shipped directly to the special zones with the sales vouchers of the selling
units.
Article 18 Entry and exit procedures shall be simplified and
conveniences given to the foreign personnel, overseas Chinese and
compatriots from Hongkong and Macao entering and leaving the special zones.
Chapter IV Labour Management
Article 19 A labour service company shall be set up in each of the
special zones. Chinese staff members and workers to be employed by
enterprises in the special zones, whether they are recommended by the local
labour service companies or recruited by the investors themselves with the
consent of the Guangdong Provincial Committee for the Administration of
Special Economic Zones, shall all be tested by the enterprises before
employment and labour contracts shall be signed with the staff members
and workers.
Article 20 The staff members and workers employed by enterprises in the
special zones shall be managed by the enterprises according to their business
requirements and, when necessary, may be dismissed, after going through the
procedures provided in the labour contracts.
Staff members and workers of the enterprises in the special zones may
submit their resignations to the enterprises in accordance with the
provisions of the labour contracts.
Article 21 The wage levels, types of wages, award measures and the
labour insurance and various state subsidies for the Chinese staff members
and workers of the enterprises in the special zones shall be included in the
contracts signed by the enterprises with the staff members and workers as
stipulated by the Guangdong Provincial Committee for the Administration of
Special Economic Zones.
Article 22 Enterprises in the special zones shall adopt the necessary
measures for labour protection to ensure that staff members and workers work
in safe and hygienic conditions.
Chapter V Administrative Organization
Article 23 The Guangdong Provincial Committee for the Administration of
Special Economic Zones shall exercise the following functions and powers:
(1) to draw up development plans for the special zones and organize their
imple-mentation;
(2) to examine and approve the investment projects of investors in the
special zones;
(3) to handle registration of industrial and commercial enterprises and
land allotment in the special zones;
(4) to coordinate working relations among the banking, insurance,
taxation, Customs, frontier inspection, postal and telecommunications and
other organizations in the special zones;
(5) to provide the staff members andd workers needed by enterprises in
the special zones and protect the legitimate rights and interests of the
staff members and workers;
(6) to establish educational, cultural, health and various public welfare
institutions in the special zones; and
(7) to maintain law and order in the special zones and protect, in
accordance with the law, the persons and property in the special zones
against encroachment.
Article 24 The Shenzhen Special Zone shall be under the direct
management and administration of the Guangdong Provincial Committee for the
Administration of Special Economic Zones. Necessary offices shall be set up
in the Zhuhai and Shantou Special Zones.
Article 25 A Guangdong Provincial Special Economic Zones Development
Company shall be set up to suit the expanding economic activities in the
special zones. Its scope of business shall include: undertaking to raise
funds and handle trust investment business; operating, or jointing with
investors in operating, relevant enterprises in the special zones; acting
as agent for investors in the special zones in transactions relating to
sales and purchases in trade with the interior; and providing services for
business talks.
Chapter VI Supplementary Provisions
Article 26 These Regulations shall go into effect after they have been
adopted by the People’s Congress of Guangdong Province and submitted to and
approved by the Standing Committee of the National People’s Congress of the
People’s Republic of China.?
INTERIM REGULATIONS ON LAWYERS
| Category | JUDICIAL ADMINISTRATION | Organ of Promulgation | The Standing Committee of the National People’s Congress | Status of Effect | Invalidated |
| Date of Promulgation | 1980-08-26 | Effective Date | 1982-01-01 | Date of Invalidation | 1997-01-01 |
|
Interim Regulations of the People’s Republic of China on Lawyers |
|---|
Contents
Chapter I The Task and Rights of Lawyers
Chapter II The Qualifications of Lawyers
Chapter III Business Organizations of Lawyers
Chapter IV Supplementary Provisions
(Adopted at the 15th Meeting of the Standing Committee of the Fifth
National People’s Congress and promulgated by Order No.5 of the Standing
Committee of the National People’s Congress on August 26, 1980, and effective
as of January 1, 1982) (Editor’s Note: These Regulations were annulled by the
Law of the People’s Republic of China on Lawyers promulgated on May 15, 1996.)
Contents
Chapter I The Task and Rights of Lawyers
Chapter II The Qualifications of Lawyers
Chapter III Business Organizations of Lawyers
Chapter IV Supplementary Provisions
Chapter I The Task and Rights of Lawyers
Article 1 Lawyers are state legal workers whose task is to give legal
assistance to state organs, enterprises and institutions, public
organizations, people’s communes and citizens in order to ensure the correct
implementation of the law and protect the interests of the state and
collectives as well as the lawful rights and interests of citizens.
Article 2 The principal duties of lawyers shall be:
(1) to accept the mandate of state organs, enterprises and institutions,
public organizations and people’s communes to serve as their legal advisers;
(2) to accept the mandate of a party to a civil action to serve as his
representative in litigation;
(3) to accept the mandate of a defendant or the assignment of a people’s
court to serve as his defender in a criminal case; to accept the mandate of a
private prosecutor or of the victim and his near relatives in a public
prosecution to serve as their representative in litigation;
(4) to accept the mandate of a party in a nonlitigious matter to give legal
assistance or serve as its representative in mediation or arbitration;
(5) to give consultative advice on legal questions and draft documents in
connection with litigation or other legal matters.
Lawyers shall publicize the socialist legal system through all their
professional activities.
Article 3 In performing their duties, lawyers shall serve the cause of
socialism and the interests of the people, act on the basis of facts and take
the law as the criterion.
In the performance of their functions according to law, lawyers shall be
protected by the law of the state, subject to no interference by any
organization or individual.
Article 4 When being retained by an organization as its legal adviser, a
lawyer shall have the responsibility to give advice on legal questions arising
from the client organization, draft and examine legal documents for it,
represent it in litigation, mediation or arbitration, and safeguard its lawful
rights and interests.
Article 5 When acting as representatives in litigation and nonlitigious
matters, lawyers shall have the responsibility to safeguard the lawful rights
and interests of the client within the scope of the mandate.
Within the scope of the mandate, the lawyer’s procedural and legal acts
shall have the same effect as those of the client.
Article 6 When acting as defenders in criminal cases, lawyers shall have
the responsibility to safeguard the lawful rights and interests of the
defendants on the basis of facts and the law. A lawyer may refuse to act as the
defender of a defendant if he believes that the defendant has not truthfully
stated the facts of the case to him.
Article 7 In legal proceedings, lawyers shall have the right, to consult
the materials of the case and may make enquiries from organizations and persons
concerned in accordance with relevant regulations. When acting as defenders in
criminal cases, lawyers may meet and correspond with the defendants held in
custody.
The organizations and persons concerned shall have the duty to render
assistance to the lawyers engaged in the activities mentioned in the preceding
paragraph.
Lawyers shall have the responsibility to keep confidential state secrets
and matters of personal privacy which they come into contact with in their work.
Chapter II The Qualifications of Lawyers
Article 8 The undermentioned citizens who cherish the People’s Republic of China, support the socialist system and have the right
to vote and stand for
election shall be eligible as lawyers after passing an examination:
(1) those who have graduated from law faculties of universities or colleges
and have been engaged for two or more years in judicial work, legal
instruction or jurisprudential studies;
(2) those who have had professional legal training and have worked as
judges in people’s court or as procurators in people’s procuratorates;
(3) those who have received college education, have completed three or more
years of economic, scientific and technological work, are proficient in their
professions and the relevant laws and decrees thereof, and have gone through
professional legal training and who are fit for the work of a lawyer; and
(4) those who have attained the same level of knowledge of practical legal
work as is required of persons prescribed in Items (l) and (2) above and the
same level of learning as is given by college education and who are fit for the
work of a lawyer.
Article 9 To be eligible as a lawyer, a person must be examined and
approved by the judicial department (bureau) of a province, autonomous region,
or municipality directly under the Central Government and issued a lawyer’s
certificate, and a report shall be made to the Ministry of Justice of the
People’s Republic of China for the record. Upon discovery of an improper
examination and approval, the Ministry of Justice shall instruct the relevant
judicial department (bureau) to conduct a reexamination.
Article 10 Those who are eligible as lawyers but are unable to leave their
present positions to practise law may act as part-time lawyers. The current
organizations in which they are working shall support such arrangements.
Personnel presently attached to the people’s courts, people’s
procuratorates and people’s public security organs may not act as part-time
lawyers.
Article 11 Those who have graduated from law faculties of universities or
colleges or have gone through professional legal training may act as apprentice
lawyers after examination and approval by the judicial departments (bureaus)
of provinces, autonomous regions, or municipalities directly under the Central
Government.
The training period for apprentice lawyers shall be two years. Upon
completion of the training period, apprentice lawyers shall be given lawyers
credentials in accordance with the procedure prescribed in Article 9 of these
Regulations; the training period may be extended if an apprentice lawyer fails
to pass the examination.
Article 12 Lawyers who are incompetent shall be disqualified as lawyers by
decision of the judicial departments (bureaus) of provinces, autonomous
regions, or municipalities directly under the Central Government and with the
approval of the Ministry of Justice.
Chapter III Business Organizations of Lawyers
Article 13 Legal advisory offices shall be the business organizations from
which lawyers perform their duties.
Legal advisory offices shall be public institutions under the
organizational leadership and professional supervision of the judicial
administrative organs of the state.
Article 14 Legal advisory offices shall be established in counties, cities
and municipal districts. When necessary, specialized legal advisory offices
may be established with the approval of the Ministry of Justice.
Legal advisory offices shall not be subordinate to one another.
Article 15 The principal functions of a legal advisory office shall be to
direct lawyers in the development of their professional work, to organize their
political studies and professional studies in law and to sum up and exchange
their work experience.
Article 16 A legal advisory office shall have one director and may have
deputy directors where necessary. The director and deputy directors shall be
elected by the lawyers in that office, subject to approval by the judicial
department (bureau) of a province, autonomous region, or municipality directly
under the Central Government. They shall be elected for a term of three years
and may be reelected to successive terms in office.
The director and deputy director(s) of a legal advisory office shall direct
the work of the office and at the same time perform their duties as lawyers.
Article 17 The mandates for lawyers to handle cases shall be accepted and
service fees collected exclusively by the legal advisory office.
In the distribution of cases to lawyers, the legal advisory office shall,
as best as possible and according to actual conditions, assign lawyers as
requested by clients.
Article 18 A legal advisory office may appoint lawyers to carry out
professioal activities in other localities, and the legal advisory office there
shall provide them with assistance.
Article 19 A lawyers association shall be established to protect the
lawful rights and interests of lawyers, to exchange work experience, to further
the progress of lawyers work and to promote contacts between legal workers
both at home and abroad.
The lawyers association is a social organization. It shall formulate its
own articles of association.
Chapter IV Supplementary Provisions
Article 20 The standards for the post_title of lawyer, the regulations on
awards and penalties for lawyers and the measures for the collection of service
fees shall be stipulated separately by the Ministry of Justice.
Article 21 These Regulations shall go into effect on January 1, 1982.?
CONSTITUTION ACT, 1982 – page 22
