Facebook
Home German Laws Federal Acts Page 5

Federal Acts

GUIDING OPINIONS OF THE GENERAL OFFICE OF THE MINISTRY OF COMMERCE ON THE WORK OF ABSORBING FOREIGN INVESTMENT IN 2007

Guiding Opinions of the General Office of the Ministry of Commerce on the Work of Absorbing Foreign Investment in 2007

Shang Zi Zi [2007] No.25

For the purpose of grasping the precious opportunities brought about by the increase of transnational investment and the international
industrial transfer, implementing a scientific outlook of development, raising the quality and level of the absorbed foreign investment,
giving full play the benefits of foreign-funded enterprises in national economic and social development and providing guidance to
the whole country in foreign investment absorption, it is hereby notified:

I.

The Absorption of Foreign Investment of the Whole Country in 2006

The year 2006, which marked the beginning of the Eleventh Five-Year Programme, witnessed a steady increase of foreign investment in
China. Some all-caliber figures concerning the absorption of foreign direct investment in 2006 are given as follows: 41485 foreign-invested
enterprises were established, down by 5.76% compared with the previous year and the actually utilized foreign capital stood at US$69.468
billions, down by 4.06%. 12 out of the aforementioned 41485 were Chinese-foreign equity joint banks, insurance companies and funds
management companies, decreasing by 33.33% over the previous year and they actually utilized a total of US$6.447 billion, decreasing
by 46.64%.

The industrial structure of foreign investment was further optimized and the high-tech industries have gained ground on absorbing
foreign investment. In 2006, the actually utilized investment of high-tech industries amounted to US$10.14249 billion, up by 3.81%
over the previous year, and the telecommunication equipment manufacturing, optoelectronic device manufacturing and computer manufacturing
were the most prominent in this regard with a rise of 61.40%, 50.97% and 48.63% respectively. The increase of foreign investment
in non-financial service sector also gained momentum, which was shown by an actually utilized foreign investment of US$ 14.692 billion,
increasing by 25.79% over the previous year and the proportion in the national total up by almost 4 percentage points. The manufacturing
sector utilized a total of US$40.077 billion of foreign fund, which was down by 5.6% and whose proportion in the national total decreased
by 6.78 percentage points. The macro-regulation of foreign investment in the key industries was very effective. Since 2005, no foreign-invested
projects or projects with extended production capacity had been approved in iron and steel, cement and electrolytic aluminum industries.
In 2006, the actually utilized investment of the iron and steel and cement industries reached US$141 million and US$109 million respectively,
which marked significant decreases of 66.67% and 55.67%.

The distribution of foreign investment remained unbalanced. The eastern China utilized a total of US$56.922 billion of foreign investment
in 2006, which accounted for 90.32% of the national total, the central region absorbed US$3.922 billion, or 6.22% while the figures
for the western part were US$2.177 billion and 3.45%. The old industrial bases of northeastern China made use of US$2.466 billion
of foreign investment, or 3.91% of the national total.

The foreign-invested enterprises operated well and their role in the development of national economy was further strengthened. In
the first half of 2006, the investment in the fixed assets made by foreign-invested enterprises stood at US$304.31 billion, which
was up by 19.6% over the same period of the previous year and comprised 11.96% of the national total; foreign-invested enterprises
realized an industrial added value of US$906.07 billion, which was an increase of 18.9% and took up 28.54% of the national total.
From January to November, 2006, the import and export volume of foreign-invested enterprises reached US$937.548 billion, which was
an increase of 25.49% and constituted 58.24% of the national total; the export volume of foreign-invested enterprises stood at US$509.617
billion, or 58.24% of the national total, up by 27.90%. The export volumes of new and high-tech products and mechanical and electrical
products were US$223.378 billion (or 87.99% of the national total) and US$367.542 billion (or 74.05% of the national total) respectively,
registering respective increases of 30.53% and 29.59% over the same period of the previous year. From January to September, the taxes
paid by foreign-invested enterprises amounted to US$606.212 billion, or 21.4% of the national total, up by 27.5%, and the added value
of taxes by foreign-invested enterprises constituted 25.59% of the national total.

There are currently about 280 million people directly employed by foreign-invested enterprises, which comprised more than 10% of non-agricultural
labour force in the urban areas.

II.

The Situation of Foreign Investment to Be Faced in 2007

In terms of the international situation, the world economy will maintain good momentum of development in 2007. Modern service industry,
with service outsourcing as its main content, and a new round of industrial transfer characterized by advanced manufacturing, research
and development will continue their development. Merger and acquisition will remain the major form of transnational direct investment
and its total volume will keep growing. Meanwhile, developing countries and neighboring countries will release their new policies
of foreign investment absorption in succession and try to enhance it; the investment made among developed countries are becoming
more liberalized, which will slow down the growth of the international investment in developing countries. After the transition period
of entering WTO, developed countries will pose on China even greater pressure of further opening up which may exceed China’s capacity.

In terms of domestic situation, the effects of the macro-regulation are becoming increasingly noticeable and the national economy
will keep growing healthily and rapidly; foreign-related laws and regulations are becoming better and more complete; the trends of
horizontal and vertical investment transfer of transnational corporations are obvious; an all-directional, multi-layer and wide-range
pattern of opening up, the service sector included, is taking shape, which has created favorable conditions for keeping appropriate
growth of foreign investment. Meanwhile, the advantages in such traditional production factors as land, labour force and energy have
been weakened; some policies concerning the absorption of foreign investment are and will be undergoing revision one after another,
which will add to the uncertainty in the short term, while in the long run will promote the upgrading and adjustment of foreign investment
structure.

All in all, both opportunities and challenges exist in the work of absorbing foreign investment in 2007, which, on the whole, is beneficial
to the active and reasonable absorption and the further improvement of the work on foreign investment in terms of the quality and
level.

III.

The Guidelines of the Work on Absorbing Foreign Investment in 2007

The guidelines are as follows: to fully implement the scientific outlook on development and raise the quality and level of absorbing
foreign investment, with the strategic objective of building a harmonious society as the centre; to adhere to opening up to the outside
world, serve for the overall interests of national economy and maintain the relative continuity and consistency of the foreign investment
policies; to continue the active and reasonable absorption of foreign investment, import advanced technologies, managerial expertise,
high-level talents and optimize the industrial structure; to provide guidance for the gradient industrial transfer of foreign investment
and promote the coordinated development of regional economy; to develop service outsourcing business and raise the development level
of China’s service industry; to build a more open innovation system and strengthen the capability of independent innovation; to keep
a sustainable development in national economic and technological development zones.

IV.

The Objectives of the Work on Absorbing Foreign Investment in 2007

The objectives are as follows: to strictly follow the basic state policy of opening to the outside world and change the mindset on
absorbing foreign investment; to build a government oriented towards providing quality service to the public and improve the overall
environment for absorbing foreign investment, with raising the quality and level of the utilization of foreign investment as the
core; to lead foreign business to invest in the high-tech manufacturing, modern service industry and the high-level research and
development process, as well as in the resource-saving and environment-friendly industries and maintain an appropriate growth of
foreign investment; to carry out the relevant policies concerning the rise of central China, development of the western region and
rejuvenating the old industrial bases in northeast China and to encourage the gradient industrial transfer; to simplify and standardize
the approving procedures of foreign investment and strengthen the supervision over and administration of foreign investment; to build
a all-round and multi-level system of foreign investment promoting.

V.

In order to achieve the aforementioned objectives, the competent departments of commerce at various levels shall work on the following
9 aspects

1.

Study the principles of the 16th CPC National Congress, the relevant documents released since the 3rd Plenary Session of the 16th
Central Committee of CPC and the National Conference on Economic Work and change the mindset on absorbing foreign investment in line
with the latest development.

The competent departments of commerce shall fully implement a scientific outlook on development and, by focusing on the strategic
objectives of building a harmonious society and an innovative country, study and comprehend the guiding principles of the Central
Committee of the Party and the State Council on adhering to opening up and raising the quality and level of utilizing foreign investment.
The competent departments of commerce shall fully understand the significance and effects of absorbing foreign investment in the
new era, strengthen the function of public service of the government, investigate and research on the situation of foreign investment
in different regions and, considering the overall distribution of national economy, flexibly formulate the policies and measures
of raising the quality and level of absorbing foreign investment.

2.

Further transform government functions and actively improve the overall investment environment.

The competent departments of commerce shall, facing the new situation of foreign investment absorption and researching on the latest
development, conduct all the preparatory work of publicity, explanation and implementation for policy adjustment and keep the relative
consistency and continuity of the policies concerning absorbing foreign investment; the competent departments of commerce shall timely
put forward proposals for formulation and revision of relevant laws, regulations and policies and make further improvement on them;
the competent departments of commerce shall accelerate transforming government functions, enhance their awareness of providing service
to the public, take steps to make administrative affairs more open, promote administrative efficiency and administrative level in
accordance with the law, further simplify the approving procedures, enhance the capacity of online administration and improve transparency;
the competent departments of commerce shall make further amendments to the measures of handling complaints arising from the foreign
investment, intensify law enforcement in intellectual property protection and protect the lawful rights and interests of investors
at home and abroad; the competent departments of commerce shall innovate the forms of publicity, intensify the positive publicity
activities and cultivate favorable public opinions of raising the quality and level of absorbing foreign investment.

3.

Appropriately lead the orientation of foreign investment and optimize the industrial structure.

The competent departments of commerce shall implement the state macroeconomic policies, strengthen the research on the industrial
policies and the current development, lead the orientation of foreign investment flexibly on the basis of the Catalogue for the Guidance
of Foreign Investment Industries and Catalogue of Encouraged Hi-tech Products for Foreign Investment, further encourage foreign investment
in modern agriculture, modern service industry and service outsourcing industry and in the technological renovation and upgrading
of traditional industries and encourage transnational corporations to set up in China regional headquarters, purchasing centres,
logistics centres and training centres; the competent departments of commerce shall take effective measures to restrict foreign investment
in real estate and in the industries with high energy consumption, high pollution emission and low production efficiency, help the
restructuring and upgrading of processing trade, promote the joint investment and cooperation of foreign businesses and domestic
private enterprises, fully utilize overseas resources to develop capital market, and guide and standardize strategic foreign investment
in listed enterprises.

4.

Advance “the Project of Encouraging Investment in Central-Western Region” and promote the coordinated development of regional economy.

The competent departments of commerce shall speed up the revision of Catalogue of Priority Industries for Foreign Investment in the
Central-Western Region, moderately relax the access conditions for foreign investment in the central-western region, implement various
policies concerning the rise of central China, development of the western region and rejuvenating the old industrial bases in northeast
China, promote regional cooperation, encourage East China to speed up its industrial system and mechanism innovation and industrial
restructuring and upgrading, assist the central-western and the northeastern regions in creating conditions for the transfer of open
industries in the eastern part and foreign industries; the competent departments of commerce shall strive to make the 2nd Central
China Trade and Investment Expo a success as a new platform for the further opening up and cooperation with others for the 6 provinces
in central China, deepen the opening up across the border and, considering the bearing capacity of the resources and environment,
advantages for development and potentials of the region, improve the regional development policies.

5.

Develop Modern Service Industry and Undertake the International Service Outsourcing Business.

The competent departments of commerce shall promote the opening up of the service industry in an active and reliable manner, increase
the proportion of foreign investment in it and lead foreign businesses to invest in modern service industries with high added-value
such as finance, logistics, chain stores, IT, software and technological research & development.

The competent departments of commerce shall seize the opportunities of international service outsourcing, further improve the relevant
policies of encouraging the development of service outsourcing industry, fully implement the released supporting measures in the
fields of finance, banking, personnel training, quality authentication of enterprises, international market development, public information
and technology service and intellectual property protection, accelerate the cultivation of cities and enterprises as the bases for
China’s service outsourcing industry, promote the investment and encourage transnational corporations to have China as their important
partner in their service outsourcing business.

6.

Strengthen the Administration of Foreign Investment and Guide and Standardize the Merger & Acquisition of Foreign Investment.

The competent departments of commerce shall further improve the all-caliber statistic work of foreign investment in terms of scope
and depth, better the statistic system of foreign investment, raise the level of joint annual survey, strengthen the monitoring and
analysis of foreign investment, establish the announcement and administration mechanism of key foreign-invested projects the information
work mechanism of foreign investment to provide support for the decision-making of the government.

The competent departments of commerce shall improve the relevant laws, rules and regulations, encourage fair competition, guide and
standardize the merger and acquisition of foreign investment, guard against monopolized and hostile merger and acquisition and maintain
the control force in key industries and areas with a view to ensuring the national economic security.

7.

Build Harmonious Development Zones and Create New Advantages.

The competent departments of commerce shall, on the basis of adaptation to the adjustment of relevant policies and research on the
counter-measures, formulate the measures of sustainable development in the national economic and technological development zones,
give scope to the role of the zones of demonstration, radiation and promotion, develop special zones with vigorous economic growth
and large foreign investment, which absorb domestic investment as well; the competent departments of commerce shall guide and encourage
the development zones to develop new and high-tech industries, modern service industries which are energy-saving and environmental
friendly, enhance the capabilities of independent innovation, give play to the industrial clustering effects of the development zones
in East China and extend their industrial chain, support those in central-western region and the old industrial bases in northeastern
China to speed up infrastructure construction and personnel training to make preparations for the transfer of some industries from
East China, promote regional collaboration in establishing cooperation parks and lead eastern development zones to assist the western
region in improving the comprehensive investment environment.

8.

Improve the Investment Promoting System and Standardize the Foreign Investment Inviting.

The competent departments of commerce shall formulate the investment promoting strategy on the basis of the regional characteristics,
establish and improve the national investment promoting system, innovate the forms of investment promotion and make it institutionalized
and systemized, give full play the role of bilateral and multilateral investment promoting mechanism, research on and determine the
quality appraisal system of absorbed foreign investment, prohibit all disguised preferential policies in foreign investment inviting
in contravention of laws and regulations and correct the practices of assigning quotas to the subordinate departments.

9.

Promote Independent Innovation by Utilizing Foreign Investment.

The competent departments of commerce shall, comprehensively and objectively research on and sum up the experience of promoting independent
innovation by utilizing foreign investment in the context of opening up to the outside world, publicize and utilize the relevant
state policies of encouraging scientific innovation and develop new patterns of promoting innovation by utilizing foreign investment;
the competent departments of commerce shall promote foreign-invested enterprises to assimilate, absorb and re-innovate the technologies
after importing them, encourage transnational corporations to conduct joint cooperation with domestic research and development institutions
and enterprise and expand the spillover effect of foreign-invested technologies; the competent departments of commerce shall encourage
the establishment of foreign-invested enterprises for venture investment and improve the withdrawal mechanism.

The Ministry of Commerce of People’s Republic of China

March 6, 2007



 
The General Office of the Ministry of Commerce
2007-03-06

 






CIRCULAR OF THE MINISTRY OF FINANCE CONCERNING THE RELATED MATTERS ON IMPLEMENTING THE AMENDED GENERAL RULES FOR ENTERPRISE FINANCE

Circular of the Ministry of Finance Concerning the Related Matters on Implementing the Amended General Rules for Enterprise Finance

Cai Qi [2007] No. 48

For the purpose of implementing the amended General Rules for Enterprise Finance (Decree No. 41 of the Ministry of Finance), doing
well in the conversion from the old enterprise financial system to the new one, and propelling the reform of the enterprise financial
system, the related matters are hereby informed as follows:

1.

On the Link-up Matter on Employees’ Welfare Funds in the Financial System Reform

After the amended General Rules for Enterprise Finance comes into effect, an enterprise may not reserve the employees’ welfare funds
at a rate of 14% of the total wage amount, and shall charge back the employees’ welfare funds as reserved in 2007. Up to December
31, 2006, the book balance of payable welfare funds (not including the balance of employees’ welfare funds and awards that are reserved
by foreign-invested enterprises from the after-tax profits) shall be dealt with in accordance with the following conditions. In the
case of any separate provisions formulated by listed company, such provisions shall prevail:

(1)

Where the balance is in red ink, it should be converted into the undistributed profits at the beginning of 2007, and they shall be
made up by free or statutory common reserve funds if the undistributed profits at the beginning of 2007 thus become negative, , and
where there is still balance, such balance shall be made up by the net profits generated in 2007 or later.

(2)

Where there is surplus, the surplus shall be used in accordance with the original provisions, and after the surplus has been used
up, the amended General Rules for Enterprise Finance shall apply. Where an enterprise restructures into a corporation or alienates
its property rights, it shall increase the capital reserves in accordance with the Supplementary Circular of the Ministry of Finance
on the Related Matters about the Provisional Provisions on the Administration and Financial Treatment of the Corporation Restructuring
of Related State-owned Assets (Cai Qi [2005] No. 12).

2.

On Organizing the Implementation of the Amended General Rules for Enterprise Finance

Each region, department and enterprise group shall earnestly organize the implementation of the Amended General Rules for Enterprise
Finance, conduct business trainings in light of their respective situations, do well in disseminating the policies for the enterprise
financial system reform, and adjust, amend and perfect the enterprise financial management systems in accordance with the amended
General Rules for Enterprise Finance (Order No. 41 of the Ministry of Finance), and guarantee the smooth conversion of new and old
enterprise financial systems.

The Ministry of Finance

March 20, 2007



 
The Ministry of Finance
2007-03-20

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE RELATED TAX POLICIES ON THE SERVICE SPONSORSHIP OF THE 29TH OLYMPIC GAMES BY ATOS ORIGIN (BEIJING) COMPANY AND OMEGA (SWITZERLAND) COMPANY

Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Related Tax Policies on the Service Sponsorship
of the 29th Olympic Games by Atos Origin (Beijing) Company and Omega (Switzerland) Company

Cai Shui [2007] No. 38

The public finance departments (bureaus), state taxation bureaus and local taxation bureaus of each province, autonomous region, municipality
directly under the Central Government and city specifically designated in the state plan,

For the purpose of ensuring the success of the 29th Olympic Games held in China, upon study, the related tax matters on the service
sponsorship to the 29th Olympic Games in the forms of cash and goods, etc. by Atos Origin (Beijing) Company and Omega (Switzerland)
Company are hereby clarified as follows:

1.

As regards the 82,510,000 USD of expenses for Atos Origin (Beijing) Company to provide the service sponsorship to the Beijing Organizing
Committee in accordance with the sponsorship agreement, when calculating the taxable enterprise incomes, the actual amount occurred
in the current year shall be totally deducted according to Item 4 of Article 2 of the Notice of the Ministry of Finance, the State
Administration of Taxation and the General Administration of Taxation on the Related Tax Policies for the 29th Olympic Games (Cai
Shui [2003] No. 10).

2.

As regards the 53,110,000 USD of expenses for Omega (Switzerland) Company to provide the service sponsorship to the BOCOG in accordance
with the sponsorship agreement, where no permanent institution has been set up within the territory of China in accordance with the
Agreement between the Government of the People’s Republic of China and the Swiss Federal Council on Avoiding Double Taxation on Incomes
and Properties, the matter of pre-tax deduction is not involved; where a permanent institution has been established within the territory
of China, in accordance with Item 4 of Article 2 of the Circular of the Ministry of Finance, the State Administration of Taxation
and the General Administration of Taxation on the Related Tax Policies for the 29th Olympic Games (Cai Shui [2003] No. 10), when
calculating the taxable enterprise incomes, the actual amount occurred in the current year shall be totally deducted. Where the enterprise
income tax is levied by way of verifying profits, the expenses for such service sponsorship may be deducted directly from the income
amount, on basis of which, the taxes to be levied are verified.

3.

As regards the sponsorship services gratuitously provided to the BOCOG by Atos Origin (Beijing) Company or Omega (Switzerland) Companyin
accordance with the sponsorship agreement, no business tax may be levied.

4.

Except for the service sponsorship, in case Atos Origin (Beijing) Company or Omega (Switzerland) Company collects other service incomes
from the BOCOG, related taxes shall be paid in accordance with the tax law or the treaty of China.

The Ministry of Finance

The State Administration of Taxation

March 29, 2007



 
The Ministry of Finance, the State Administration of Taxation
2007-03-29

 






ANNOUNCEMENT NO 41, 2007 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS ON PROMULGATING LICENSE ADMINISTRATION ON EXPORT OF A PART OF STEELS

Announcement No 41, 2007 of Ministry of Commerce and General Administration of Customs on Promulgating License Administration on Export
of A Part of Steels

In accordance with Foreign Trade Law of the People’s Republic of China and Administrative Regulations on Commodity Import and Export
of the People’s Republic of China, related issues on license administration on export of a part of steels are now announced as follows:

1.

As from May 20, 2007, export license administration (please refer to appendix for commodity code of the customs) shall be carried
out on a part of steels in line with Administrative Measures on Commodity Export License (Announcement No.28, 2004 of Ministry of
Commerce).

2.

When exporting steels listed in this announcement, enterprises shall apply for export license to provincial (province, autonomous
regions, municipalities, cities separately listed in the sate plan and Xinjiang production and construction corps) license-issuing
authorities of local place where the enterprises are located in accordance with Administrative Measures on Commodity Export License.

3.

Trade mode of export license of steels listed in the announcement shall only applicable to general export (loan payment export and
international bidding export are excluded).

4.

“One license for one approval” is adopted on export license of steels listed in the announcement. Related regulations of Administrative
Regulations on Commodity Import and Export shall be implemented to deal with related issues on foreign-invested enterprises.

5.

The export license of steels listed in the announcement shall be effective in 3 months as from release of the license.

6.

Ministry of Commerce and General Administration of Customs shall be responsible for interpretation of this announcement.

Appendix: List of Steels under Export License Administration (omitted)

Ministry of Commerce

General Administration on Customs

Apr 30, 2007



 
Ministry of Commerce and General Administration of Customs
2007-04-30

 






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

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

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

People’s Bank of China

National Development and Reform Commission

June 8, 2007

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

Article 1

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

Article 2

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

Article 3

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

Article 4

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

Article 5

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

Article 6

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

1.

It has a sound corporate governance mechanism;

2.

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

3.

It has had continuous profits for the last three years;

4.

It has adequate reserves for loan losses;

5.

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

6.

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

7.

Other requirements as prescribed by the PBC.

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

Article 7

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

1.

an application report concerning the issuance of RMB bonds;

2.

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

3.

the scale and term of the bonds to be issued;

4.

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

5.

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

6.

legal opinions in written form as issued by attorneys;

7.

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

8.

other documents as required by the PBC.

Article 8

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

Article 9

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

Article 10

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

Article 11

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

Article 12

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

Article 13

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

Article 14

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

Article 15

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

Article 16

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

Article 17

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

Article 18

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



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

 






SUPPLEMENTARY PROVISIONS NO. 2 TO THE PROVISIONS ON FOREIGN INVESTMENT IN THE CIVIL AVIATION INDUSTRY

Order of the General Administration of Civil Aviation of China, the Ministry of Commerce and the National Commission of Development
and Reform

No. 174

Supplementary Provisions No. 2 to the Provisions on Foreign Investment in the Civil Aviation Industry has been deliberated and adopted
at the executive meeting of the Civil Aviation Administration of China on November 30, 2006 and has been approved by the Ministry
of Commerce and the National Commission of Development and Reform upon examination. It is hereby promulgated and shall enter into
force as of January 4, 2007.
Yang Yuanyuan, Director-General of the Civil Aviation Administration of China

Bo Xilai, Minister of the Ministry of Commerce

Ma Kai, Director-General of the National Development and Reform Commission

January 4, 2007

Supplementary Provisions No. 2 to the Provisions on Foreign Investment in the Civil Aviation Industry

Subject to Supplementary Agreement No.2 on Mainland and Hong Kong Closer Economic Partnership Arrangement, Supplementary Agreement
No. 3 on Mainland/Hong Kong Closer Economic Partnership Arrangement, Supplementary Agreement No.2 on Mainland and Macao Closer Economic
Partnership Arrangement and Supplementary Agreement No 3 to Macao/Mainland Closer Economic Partnership Arrangement as approved by
the State Council, the Supplementary Provisions to the Provisions on Foreign Investment in the Civil Aviation Industry (Decree No.
110 of the Civil Aviation Administration of China, Ministry of Foreign Trade and Economic Cooperation and State Planning Commission)
are hereby given as follows:

1.

A Hong Kong or Macao aviation sales agent meeting the definition of Hong Kong or Macao service provider is permitted to establish
an equity joint, contractual, or solely-funded air transport sales agency in the Mainland. It shall satisfy the same requirement
of registered capital as that for Mainland enterprises.

2.

The General Administration of Civil Aviation of China, Ministry of Commerce of the People’s Republic of China and the National Commission
of Development and Reform are responsible for the interpretation of the present Supplementary Provisions according to their respective
functions.

3.

The present Supplementary Provisions shall enter into force as of January 4, 2007.



 
General Administration of Civil Aviation of China, Ministry of Commerce and the National Commission of Development
and Reform
2007-01-04

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE POLICIES AND RELATED MANAGEMENT ISSUES CONCERNING THE PRE-TAX DEDUCTION OF PUBLIC WELFARE RELIEF DONATIONS

Circular of the Ministry of Finance and the State Administration of Taxation on the Policies and Related Management Issues concerning
the Pre-tax Deduction of Public Welfare Relief Donations

Cai Shui Fa [2007] No.6
January 18, 2007

The finance departments (bureaus), state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities
directly under the Central Government, and cities specifically designated in the state plan, and the Financial Bureau of Xinjiang
Production and Construction Corporations,

For the purpose of further promoting the development of social pubic welfare undertakings, the related policies and related management
issues on the pre-tax deduction of public welfare relief donations are hereby announced as follows:

1.

As regards welfare social organizations or foundations which are established upon the approval of civil affairs administrative department
in accordance with the Regulations for the Administration of the Social Groups Registration (Order No. 250 of the State Council)
and the Regulations for the Administration of Foundations (Order No. 400 of the State Council), if the related provisions are met,
and upon confirmation of the public finance and taxation authorities, it may accept the public welfare relief donations granted by
the taxpayers. The pre-tax deduction of the said donations is permitted when calculating and paying the enterprise or individual
income taxes pursuant to current tax laws, regulation and related policies.

As regards any welfare social organization or foundation that is established upon approval of the civil affairs administrative department
under the State Council, the qualification for pre-tax deduction of donations shall be confirmed by the Ministry of Finance and the
State Administration of Taxation, as regards any welfare social organization or foundation that is established upon approval of the
civil affairs administrative department under the provincial people’s government, the qualification for pre-tax deduction of donations
shall be confirmed by the provincial finance and taxation authorities, and be submitted to the Ministry of Finance and the State
Administration of Taxation for archival purpose.

State departments for accepting public welfare relief donations mean the people’s governments at or above the county level and their
departments.

2.

A non-profitable public welfare social organization or foundation that applies for the qualification for pre-tax deduction of donations
shall satisfy the requirements as follows:

(1)

It is devoted to provide services to the general public and does not focus on making profits;

(2)

It has the qualification of a public welfare legal person, and its property management and use is in line with all the laws and administrative
regulations;

(3)

The public welfare legal person possesses the total assets and increments;

(4)

Its earnings and operational surplus are mostly used for the activities conforming to the purposes of its creation;

(5)

The remained estate can not be attributed to any individual or profit-making group when it is terminated or dissolved;

(6)

It can not develop any business irrelevant to the public welfare purpose;

(7)

It has sound financial and accounting systems;

(8)

It has the organizational body that does not intend for making private profits;

(9)

Any donator may be prohibited to participate in the distributions of the assets of this organization by any means, nor may it/he has
ownership to such assets.

3.

A non-profitable public welfare social organization or foundation that applies for qualification for pre-tax deduction of donations
shall file the materials as follows:

(1)

an report concerning the application for the pre-tax deduction of donations;

(2)

the registration approval document as issued by the civil affairs administrative department under the State Council or the provincial
people’s government;

(3)

its articles of association, and the circumstances on capital sources and use for the recent years as well.

4.

Those non-profitable public welfare social organizations and foundations that have the qualification for pre-tax deduction of donations,
and the people’s governments at or above the county level and their departments must use the public welfare relief donations that
it has accepted for the scope of education, civil affairs, and other public welfare business, or for the districts that suffer from
natural disasters or the poverty-stricken districts as prescribed by tax laws or regulations.

5.

Those non-profitable public welfare social organizations and foundations that have the qualification for pre-tax deduction of donations,
and the people’s governments at or above the county level and their departments shall use the vouchers of public welfare relief donations
as uniformly printed under supervision of the central or provincial public finance department respectively subject to the financial
affiliation when accepting donations or transferring donations, and attach their respective special financial seals; and shall issue
receipts for any individual that requests for it for his donations.

6.

A taxpayer shall offer the following materials in addition when declaring the pre-tax deduction of public welfare relief donations:

(1)

certification materials on the qualification for pre-tax deduction of donations of the non-profitable public welfare social organization
or foundation that has accepted or transferred donations;

(2)

the vouchers or receipts of public welfare relief donations as issued by the non-profitable public welfare social organization or
foundation that has the qualification for pre-tax deduction of donations and the people’s governments at or above the county level
or any of it departments; and

(3)

other materials as required to be submitted by the competent taxation authority.

7.

The competent taxation authority shall manage the check of the use of public welfare relief donations by non-profitable public welfare
social organizations or foundations, and if any violation of the articles of association by a non-profitable public welfare social
organization or foundation is found or any non-profitable public welfare social organization or foundation uses any donations for
any purpose other than those prescribed in its own articles of association, the income taxes on the earnings from donations and other
kinds of earnings shall be levied, and the qualification for pre-tax deduction of donations it has confirmed shall be cancelled.

8.

This Circular shall come into force as of the date of issuance.



 
The Ministry of Finance, the State Administration of Taxation
2007-01-18

 






SEVERAL DIRECTING OPINIONS OF THE MINISTRY OF FINANCE AND THE STATE DEVELOPMENT AND REFORM COMMISSION ON EXPERIMENTING THE USE OF INDUSTRIAL TECHNOLOGY RESEARCH AND DEVELOPMENT FUNDS AS VENTURE CAPITAL

Several Directing Opinions of the Ministry of Finance and the State Development and Reform Commission on Experimenting the Use of
Industrial Technology Research and Development Funds as Venture Capital

Cai Jian [2007] No. 8

The public finance departments (bureaus) as well as the development and reform commissions of each province, autonomous region, municipality
directly under the Central Government, and city specifically designated in the state plan:

In order to implement the scientific development view, construct an innovative country, support the development of commonweal industries
and national strategic industries, as well as promote the rapid and healthy development of the venture capital undertaking in China,
the Ministry of Finance and the State Development and Reform Commission, according to the Law of the People’s Republic of China Concerning
the Promotion of the Transformation of Scientific and Technological Achievements, Some Opinions of the Ministry of Finance and the
Ministry of Science and Technology Forwarded by the General Office of the State Council on Improving and Reinforcing the Administration
of Scientific and Technological Funds Allotted by the Treasury of the Central Government (Guo Ban Fa [2006] No. 56), other related
laws and regulations, as well as the tenets of other documents,, have decided to use partial funds for research and development of
national industrial technologies as venture capital. The following opinions concerning related issues are hereby given:

I.

Principles for Venture Capital

(I)

Market-oriented operations. We shall face the market and give full play to the directing function of government funds so as to fully
drive public capitals to invest in hi-tech industries; the venture capital project shall be conducted on the basis of market, that
is, to independently operate the business and solely assume responsibility for its profits or losses; the government departments
may not interfere in the project undertaker’s operation, while the management institutions shall, upon authorization by the government,
exercise investors’ rights and bear corresponding liabilities on the basis of the investment amount.

(II)

Encouraging innovations. In experimenting the venture capital among industrial technology research and development funds, they shall
be mainly invested into commonweal or public projects of scientific and technological research and development as well as achievement
transformation thereof at the seed or start-up stage in hi-tech industries. Such projects, which are characterized by original innovations,
integrative innovations or digestible and absorbable re-innovations, differs from general commercial risk capital projects and do
not aim at the maximization of benefits are.

(III)

Focusing on guidance. The purposes of experimenting venture capital among industrial technology research and development funds are
to direct public capital to invest in hi-tech industries, to settle the short of funds in hi-tech industries at the seed or start-up
stage, and to mobilize the project undertakers’ initiative, and apportion risks on the condition that the venture capital may not
occupy majority shares or exercise the dominant management.

(IV)

Normative Management. A normative consecutive project selection mechanism shall be established. We shall, through various methods,
reinforce the capability cultivation of management institutions, to strength the responsibilities thereof, and establish an effective
risk prevention system and incentive mechanism. The funds shall, in accordance with public finance principles, be withdrawn from
the venture capital in time when it becomes mature, and the recovered funds shall be turned over to the treasury of the Central Government.

II.

Entrusted Management Institutions for Venture Capital

(I)

Determination of Entrusted Management Institutions for Venture Capital.

A professional management institution shall be entrusted to manage venture capital, and the Ministry of Finance shall, by way of invitation
to bid, determine the professional management institutions jointly with the State Development and Reform Commission, and enter into
entrustment agreements with such professional management institutions.

(II)

Qualifications of entrusted management institutions:

1.

to possess the status of an enterprise legal person;

2.

to possess registered capital of no less than 100 million Yuan;

3.

to have been engaged in venture capital management for more than 5 years;

4.

to have at least 5 practitioners with 3-year or more work experience in venture capital business;

5.

to have sound venture capital management system; and

6.

to have successful experiences in operating venture capital projects.

(III)

Duties of an entrusted management institution:

1.

recommending investment projects as required by these Opinions and other related provisions;

2.

exercising investor’s rights to the invested enterprise upon entrustment within the limit of the investment amount, including appointing
directors and supervisors thereto, and lawfully exercising rights via the shareholders’ meeting, the board of directors, and the
board of supervisors;

3.

providing the invested enterprise with various value-added services by making full use of its own resources and its experiences in
the venture capital business, assisting the enterprise to establish lawful management system, and promoting the development of the
enterprise;

4.

regularly reporting the project progress, stock capital changes and other major issues of the invested enterprise to the Ministry
of Finance and the State Development and Reform Commission; and

5.

organizing the withdrawal of venture capital as required, and turning over the recovered funds to the treasury of the Central Government
in a timely manner.

III.

Selection of Venture Capital Projects

(I)

A venture capital project shall satisfy the conditions as follows:

1.

It possesses the nature of technology for commonweal and public interests, and may obviously enhance the independent industrial innovation
capacity and the enterprise’s core competitive strength;

2.

It possesses independent intellectual properties with high technical contents; and

3.

In case it is weak recently to raise funds, it has promising market prospects and a strong anticipated profitability.

(II)

Venture capital project may be selected and determined in the two ways as follows:

1.

The State Development and Reform Commission may, according to the national economic, scientific and technological development strategies
and planning, etc, promulgate the Guidance for Applying for Venture Capital Projects jointly with the Ministry of Finance. The development
and reform commission at each locality may, in accordance with these Opinions, organize related projects and recommend them to the
State Development and Reform Commission and the Ministry of Finance jointly with the public finance department (bureau), while the
State Development and Reform Commission joint with the Ministry of Finance shall, after organizing experts to make an appraisal,
decide whether to approve the investment projects and investment amounts on the basis of the conclusion of an investment agreement
between each entrusted management institution and its invested entity through negotiations.

2.

The entrusted management institution may recommend investment projects. The entrusted management institution may, within the key venture
capital-supported areas determined by the State Development and Reform Commission and the Ministry of Finance, evaluate and select
a project it has invested in accordance with the principles and requirements as provided for in these Opinions, and report it to
the State Development and Reform Commission and the Ministry of Finance. The State Development and Reform Commission shall, on the
basis of the expert appraisal, decide whether to approve the investment projects and investment amounts jointly with the Ministry
of Finance.

(III)

Materials to be reported for applying for a venture capital project:

1.

the project feasibility study report and the preliminary argument opinions of experts;

2.

accounting reports and credit standing materials of the project declarer in the latest two years which have been audited by intermediary
institutions;

3.

the current stock right structure of the project declarer;

4.

the project declarer’s resolution on consenting to the shares held in the form of fiscal investments; and

5.

other related materials.

IV.

Fund Allotment

The Ministry of Finance shall, according to relevant provisions, allot funds to the special fiduciary accounts of the entrusted management
institutions on the basis of the directory and amounts of the approved investment projects, as well as the investment agreements
entered into between the entrusted management institutions and their respective invested entities, and the entrusted management institutions
shall then allot the said funds to their respective invested entities.

The special fiduciary account of an entrusted management institution shall be opened in an agency bank designated by the Ministry
of Finance. And the Ministry of Finance, the entrusted management institution and the bank of deposit shall enter into an agreement
to stipulate that the trusteeship institution may notice the bank to allot the funds only after it has received the allotment notice
from the Ministry of Finance.

In case the allotment cannot be conducted continuously by virtue of any particular reason, the entrusted management institution shall
recover and turn over the investment funds to the treasury of the Central Government in a timely manner.

V.

Withdrawal of Venture Capital

The withdrawal of venture capital in a project may be realized through merger or acquisition of enterprises, buy-back of stock rights
and listing on the stock market, etc.

An entrusted management institution shall be responsible for observing the opportunities for the withdrawal of an investment project,
and shall conduct the withdrawal when the opportunity comes. It shall also submit the withdrawal opportunity, the withdrawal method,
etc. to the Ministry of Finance and the State Development and Reform Commission in a timely manner.

The withdrawn funds (containing the recovered interests and dividends) shall be directly recovered to the special fiduciary account,
and be turned in to the treasury of the Central Government by the entrusted management institution in a timely manner.

VI.

Entrustment Expenses

For entrusting a management institution to manage venture capital, certain fees shall be paid. The fees consists of two parts: one
part is for daily management expenditures, which shall not exceed 3% of the investment balance; and the other part is for rewarding
performance, which shall not exceed a certain proportion of the total investment proceeds (net proceeds after offsetting the losses).
The specific arrangements on the entrustment expenses shall be stipulated in the entrustment agreement.

VII.

Assessment and Supervision

(I)

An entrusted management institution shall, according to these Opinions and the issues agreed upon in the entrustment agreement, carefully
perform corresponding management duties. And it shall formulate corresponding venture capital management systems and work flows and
risk prevention systems, and shall establish corresponding work departments.

(II)

The entrusted management institutions shall be subject to the assessment and supervision of the Ministry of Finance and the State
Development and Reform Commission, who have the right to check the entrusted management institutions at irregular intervals and to
monitor the funds in special fiduciary accounts. Each entrusted management institution shall report its accounting reports and venture
capital management reports to the Ministry of Finance and the State Development and Reform Commission at regular intervals at least
once every year. The reports shall mainly contain:

1.

the entrusted management institution’s assets, liabilities and owners’ equities;

2.

the entrusted management institution’s operation;

3.

the scale and completion of the investment contribution of venture capital;

4.

the invested enterprise’s operation;

5.

the venture capital’s withdrawal and proceeds; and

6.

other issues as stipulated in the entrustment agreement.

(III)

In case an entrusted management institution falls under any of the following circumstances, the Ministry of Finance and the State
Development and Reform Commission are enpost_titled to cancel or replace it, and may resort to legal means when necessary:

1.

It dose not satisfy the qualifications as provided for in these Opinions any longer;

2.

It has grossly violated any law or rule;

3.

It is revoked, dissolved or declared as bankrupt according to law; or

4.

Other circumstances stipulated in the entrustment agreement.

As regards the experiment of venture capital among industrial technology research and development funds, it is a new and helpful exploration
of the way of supporting hi-tech industries with fiscal funds. However, venture capital is characterized by long investment period
and high risk, so importance shall be attached to the prevention of risks so as to develop the experiment in an orderly manner in
accordance with law. We shall pay attention to giving full play to the functions of the market mechanisms and the seed functions
of fiscal funds so as to promote the development of the venture capital in an active and steady way.

The Ministry of Finance

The State Development and Reform Commission

January 30, 2007



 
The Ministry of Finance, The State Development and Reform Commission
2007-01-30

 






CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING DALIAN ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Dalian Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 12

Dalian Municipal People’s Government and Dalian Economic-Technological Area,

Pursuant to Some Opinions on Further Promoting the Development Level of National Economic and Technical Development Zones (Guo Ban
Fa [2005] No. 15) as forwarded by the General Office of the State Council to the Ministry of Commerce, the Ministry of Land and Resources
and the Ministry of Construction as well as the provisions of the Ministry of Commerce on the authorized examination, approval and
administration of foreign-funded enterprises, the Ministry of Commerce has finished the archival filing, examination and approval
of the management systems of all the national economic and technological development zones and the connected network for examination
and approval of foreign capital. The related matters are hereby notified as follows:

1.

Upon research, we hereby authorize the Management Committee of Dalian Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

2.

The Management Committee of Dalian Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

3.

The Management Committee of Dalian Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

4.

Dalian Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Dalian Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

5.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

1.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

2.

Circular of the Ministry of Commerce on Entrusting the Provincial Administrative Departments of Commerce to Examine, Approve and Administer
the foreign-funded Construction Enterprises (Shang Zi Han [2005] No. 90)

3.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Printing Enterprises (Shang Zi Han [2005] No. 91)

4.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Designing Enterprises for Engineering Projects (Shang Zi Han [2005] No. 92)

5.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

6.

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

7.

Circular of the Ministry of Commerce about the related Issues on Entrusting National Economic and Technical Development Zones to Examine
and Approve foreign-funded Commercial Enterprises and International Freight Forwarding Enterprises (Shang Zi Han [2005] No. 102)

8.

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)



 
Ministry of Commerce
2007-02-12

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON CONFIRMING FOREIGN-FUNDED CARGO TRANSPORT ENTERPRISES AS INVOICE ISSUING TAXPAYERS

Circular of the State Administration of Taxation on Confirming Foreign-funded Cargo Transport Enterprises as Invoice Issuing Taxpayers

Guo Shui Han[2007] No.223

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

It has been clarified in the Reply of the State Administration of Taxation on Exempting the City Maintenance and Construction tax
as well as Educational Surcharge from Foreign-funded Cargo Transport Enterprises (Guo Shui Han [2005] No.881) that the city maintenance
and construction tax as well as educational surcharge does not apply to foreign-funded cargo transport enterprises.

Whereas the tax control system on cargo transport invoices shall be promoted to be wholly used in cargo transport enterprises from
the present year on, it is determined after investigation to uniformly cognize cargo transport enterprises as invoice issuing taxpayers
as from January 1, 2007. And other items on tax levy shall be conducted in accordance with the related provisions in the Notice of
the State Administration of Taxation on Intensifying the Tax Collection Administration Concerning the Cargo Transport Industry (Guo
Shui Fa [2003] No. 121) and the Notice of the State Administration of Taxation about Several Tax Issues Concerning Cargo Transport
Industry (Guo Shui Fa [2004] No.88).

The State Administration of Taxation

February 15, 2007



 
The State Administration of Taxation
2007-02-15

 






1...456...16Page 5 of 16

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Facebook
© LAWS.COM NETWORK 2023-2024