|
Circular of the State Administration of Taxation concerning Printing and Distributing the Measures for the Self-declaration of Individual
Income Tax (for Trial Implementation)
Guo Shui Fa [2006] No.162
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:
For the purpose of reinforcing the administration of individual income tax collection, improving the system of self-declaration of
individual income tax, and maintaining the lawful rights and interests of taxpayers, the State Administration of Taxation formulated
the Measures for the Self-declaration of Individual Income Tax (for Trial Implementation) in accordance with the Individual Income
Tax Law of the People’s Republic of China and the detailed rules for implementation thereof, the Law of the People’s Republic of
China Concerning the Administration of Tax Collection and the detailed rules for implementation thereof, as well as other related
tax provisions, . The Measures are hereby printed and distributed to you. Please abide hereby earnestly.
Appendix: Specimen of Individual Income Tax Return
The State Administration of Taxation
November 6, 2006
Appendix:
Measures for the Self-declaration of Individual Income Tax (for Trial Implementation)
Chapter I General Provisions
Article 1
For the purpose of further reinforcing the collection administration of individual income tax, safeguarding tax revenues of the State,
maintaining the legitimate rights and interests of taxpayers, facilitating and regulating the self-declaration of taxpayers, the
present Measures are formulated in accordance with the Individual Income Tax Law of the People’s Republic of China (hereinafter referred
to as the Individual Income Tax Law) and the detailed rules for implementation thereof, Law of the People’s Republic of China Concerning
the Administration of Tax Collection (hereinafter referred to as the Law Concerning the Administration of Tax Collection) and the
detailed rules for implementation thereof, as well as other related laws and regulations..
Article 2
Where a taxpayer obligatory to pay tax under the Individual Income Tax Law and is under any of the following circumstances, he/she
shall make his/her tax declaration in accordance with the present Measures:
(1)
Acquiring an annual income of 120,000 Yuan or more;
(2)
Acquiring wages and salaries from two or more sources within the territory of China;
(3)
Acquiring incomes from abroad;
(4)
Acquiring taxable incomes for which there is no corresponding withholding agent;
(5)
Any other circumstance as stipulated by the State Council.
Article 3
Any taxpayer who acquires an annual income of 120,000 Yuan or more as prescribed in Item (1) of Article 2 of the present Measures
shall, whether the individual income tax has been paid in full amount for all items of his income, make tax declaration to the taxation
authorities in accordance with the present Measures after a tax year ends.
Any taxpayer who is under any of the circumstances as prescribed in Items (2) to (4) of Article 2 of the present Measures shall,
in accordance with the present Measures, make tax declaration to the taxation authorities after receiving the income.
The measures for those taxpayers who are under the circumstances as prescribed in Item (5) of Article 2 of the present Measures to
make tax declarations shall be separately stipulated in accordance with specific circumstances.
Article 4
The ” taxpayer who acquires an annual income of 120,000 Yuan or more” as stipulated in Item (1) of Article 2 of the present Measures
may not involve those individuals who have no residence within the territory of China and have resided within the territory of China
for less than one year in a tax year.
The “taxpayer who obtains incomes from abroad” as stipulated in Subparagraph (3) of Article 2 of the present Measures means those
individuals who have residence within the territory of China or have resided within the territory of China for one full year in a
tax year.
Chapter II Contents for Declaration
Article 5
After a tax year ends, a taxpayer who obtains an annual income of 120,000 Yuan or more shall fill in an Individual Income Tax Return
(For the taxpayer who obtains an annual income of 120,000 Yuan or more) (see the attached Form 1), and submit it to the taxation
authorities when making tax declaration, and submit the photocopy of his/her effective identification certificate as well as other
related materials required to be submitted by the taxation authorities at the same time .
The “effective identification certificate” includes the taxpayer’s identification card, passport, home visit permit, military staff
certificate and so on .
Article 6
The “annual income of 120,000 Yuan or more” as stipulated in the present Measures means the total amount of the following items of
income obtained by a taxpayer in a tax year reaching 120,000 Yuan:
(1)
Wages and salaries;
(2)
Income of production or business operation obtained by self-employed industrial and commercial households ;
(3)
Income from contractual or leased operation of enterprises and institutions;
(4)
Remunerations for providing services;
(5)
Author’s remunerations;
(6)
Franchise royalties ;
(7)
Interests, dividends and capital bonuses;
(8)
Income from leasing property;
(9)
Income from transferring property;
(10)
Contingent income; and
(11)
Other taxable income determined by the public finance department of the State Council.
Article 7
The “income” as stipulated in Article 6 of the present Measures does not include the following kinds of income:
(1)
Tax-exempt income mentioned in Subparagraphs (1) to (9) of Article 4 of the Individual Income Tax Law, namely,
(a)
awards forachievementsinscience, education,technology, culture, public health, physicalcultureandenvironmentalprotection
granted by provincial people’s governments, ministries and commissions under the State Council , the People’s Liberation Army units
at army level and above and by foreign or international organizations;
(b)
interests accruing from national bonds and other financial debentures issued by the state;
(c)
subsidies and allowances receivedunderthestateuniform provisions namely, special government allowances, allowances for academicians,
allowances for senior academicians that are granted in accordance with the provisions stipulated by the State Council as stipulated
in Article 13 of the Regulation concerning the Implementation of the Individual Income Tax Law, and other kinds of subsidies and
allowances that are exempt from individual income tax as stipulated by the State Council;
(d)
welfare benefits, pensions for the disabled or for the family of the deceased and relief funds ;
(e)
insurance compensation;
(f)
military severance pay and demobilization pay;
(g)
settling-in allowances, severance pay, retirement wages, retirement wages for veteran cadres, and living subsistence allowances for
retired veteran cadres distributed to cadres and employees underthestateuniform provisions;
(h)
incomes of diplomatic representatives, consular staff and other personnel of foreign embassies and consulates in China, which shall
be exempt from tax in accordance with the provisions of related laws of China; and
(i)
incomes which shall be exempt from tax under the international conventions in which the Chinese Government joins or agreements which
the Chinese Government has signed.
(2)
Incomes obtained from abroad which can be exempt from tax as stipulated in Article 6 of the Regulation concerning the Implementation
of the Individual Income Tax Law; and
(3)
Basic endowment insurance premiums, basic medical insurance premiums, unemployment insurance premiums and public accumulation fund
for housing construction paid by entities for their staff and individuals in accordance with the provisions of the State as stipulated
in Article 25 of the Regulation concerning the Implementation of the Individual Income Tax Law.
Article 8
The annual amount of all items of income as stipulated in Article 6 of the present Measures shall be calculated in accordance with
the following methods:
(1)
The incomes obtained from wages and salaries shall be calculated in light of the income prior to the expenses deduction (1,600 Yuan
per month) and additional expenses deduction (3,200 Yuan per month);
(2)
The incomes from production and business operations obtained by self-employed industrial and commercial households shall be calculated
in light of the taxable incomes. If the tax is collected by checking accounts, the corresponding incomes shall be calculated in light
of the total amount of incomes with the cost, expenses and losses deducted for each tax year; and if the tax is collected at a fixed
time and at a fixed amount, the corresponding incomes shall be calculated in light of the annual taxable incomes declared by the
taxpayer himself/herself or the annual taxable business amount declared by the taxpayer himself/herself multiplied by the rate of
taxable incomes;
(3)
The income from contractual or leased operation of enterprises and institutions shall be calculated in light of the total amount of
income for each tax year, namely, the operation profits actually obtained by the contractor or lessee plus his/her income with the
nature of wage and salary obtained from the enterprises and institutions he/she contracted or leased;
(4)
The remunerations for providing services or author’s remunerations or franchise royalties shall be calculated in light of the income
prior to the expenses deduction(800 Yuan or 20% of incomes each time);
(5)
The income obtained from leasing property shall be calculated in light of the amount of income prior to the expenses deduction (800
Yuan or 20% of incomes each time) and repairing charges;
(6)
The incomes obtained from transferring property shall be calculated in light of the amount of taxable incomes, namely, the balance
of the amount of income from transferring property deducting the original value of property and tax and related reasonable expenses
paid in the course of transferring property; and
(7)
The income obtained from interests, dividends and capital bonuses, contingent income or other incomes shall be calculated in light
of the total amount of income.
Article 9
A taxpayer who obtains incomes under any of the circumstances as stipulated in Subparagraph2to4 of Article 2 of the present
Measures shall fill in and submit the corresponding tax return (see Appendixes 2 C 9) to the taxation authorities , and submit other
related materials required to be submitted by the taxation authorities at the same time.
Chapter III Place for Declaration
Article 10
The places for a taxpayer who obtains an annual income of 120,000 Yuan or more to make tax declaration shall be at follows respectively:
(1)
Where the taxpayer work for an employer within the territory of China, he/she shall make tax declaration to the taxation authorities
at the locality of his/her employer;
(2)
Where the taxpayer work for two or more employers within the territory of China, he/she shall select and fix the taxation authorities
at the locality of one employer to make tax declaration;
(3)
Where the taxpayer is not employed for any employer within the territory of China but there is income of production or business operations
obtained by self-employed industrial and commercial households or income from contractual or leased operation of enterprises and
institutions (hereinafter referred to uniformly as income from production or business operations) in the items of annual incomes,
the taxpayer shall make tax declaration to the taxation authorities at the locality of the actual business place of one source; and
(4)
Where the taxpayer is not employed for any employer within the territory of China and there is no income from production or business
operations in the items of his/her annual income, the taxpayer shall make tax declaration to the taxation authorities at the locality
of his/her registered permanent residence. Where the taxpayer’s registered permanent residence is within the territory of China but
different from his/her habitual residence within the territory of China, the taxpayer shall select and fix the taxation authorities
at the locality of either to make tax declaration. Where the taxpayer has no registered permanent residence within the territory
of China, tax declaration shall be made to the taxation authorities at the locality of habitual residence within the territory of
China.
Article 11
A taxpayer who obtains incomes under the circumstances as stipulated in Subparagraphs (2) through (4) of Article 2 of the present
Measures shall make tax declaration respectively at the following places:
(1)
Where the taxpayer obtains wages and salaries from two or more sources, he/she shall select and fix the taxation authorities at the
locality of one employer to make tax declaration;
(2)
Where the taxpayer obtains income from abroad, he/she shall make tax declaration to the taxation authorities at the locality of his/her
registered permanent residence within the territory of China. Where the taxpayer’s registered permanent residence is within the territory
of China but different from his/her habitual residence within the territory of China, the taxpayer shall select and fix the taxation
authorities at the locality of either to make tax declaration. Where the taxpayer has no registered permanent residence within the
territory of China, tax declaration shall be made to the taxation authorities at the locality of his/her habitual residence within
the territory of China;
(3)
A self-employed industrial and commercial household shall make tax declaration to the taxation authorities at the locality of the
actual business place;
(4)
Where an investor of sole proprietorship enterprises or enterprises in partnerships has established two or more enterprises, the places
for tax declaration shall be determined on the basis of the following different circumstances:
(a)
Where all the enterprises are sole proprietorship enterprises, tax declaration shall be made respectively to the taxation authorities
at the locality of actual business place of each enterprise;
(b)
Where any established enterprise belongs to partnerships, tax declaration shall be made to the taxation authorities at the locality
of /her habitual residence; and
(c)
Where any established enterprise belongs to partnerships and the place of habitual residence of the individual investor is different
from the business management place of the established enterprises, the investor shall select and fix the taxation authorities of
the business management place of any partnership he/she has participated in the establishment thereof to make tax declarations.
(5)
Except for the above circumstances, tax declaration shall be made to the taxation authorities at the place where the taxpayer obtains
income.
Article 12
A taxpayer may not change the place for tax declaration at his/her own choice, and if the place for tax declaration needs to be changed
by virtue of any special reason, he/she shall report it to the former taxation authorities for archival filing.
Article 13
The place for tax declaration as stipulated in Item (c) of Subparagraph (4) of Article 11 of the present Measures may not be changed
within five years, unless by virtue of any special reason.
Article 14
The term “place of habitual residence ” of the present Measures means such an ultimate place where a taxpayer successively resides
for one year or more after leaving his/her place of registered permanent residence.
Chapter IV Time Limit for Declaration
Article 15
A taxpayer who obtains an annual income of 120,000 Yuan or more shall make tax declaration to the taxation authorities within three
months after a tax year ends, .
Article 16
If the taxable income obtained from production and business operations by self-employed industrial and commercial households, investors
of sole proprietorship enterprise or enterprises in partnerships which should be prepaid in monthly installments, the taxpayer shall
make tax declaration within seven days after each month ends; and if such taxable income should be prepaid in quarterly installments,
the taxpayer shall make tax declaration within seven days after each quarter ends. The taxpayer shall make clearing-up settlement
of payments within three months after a tax year ends.
Article 17
Where the taxable income obtained from contractual or leased operation of enterprises and institutions once at the end of a year,
the taxpayer shall make tax declaration within 30 days after the incomes are obtained; and where such incomes are obtained by several
times within a tax year, the taxpayer shall make tax declaration of advanced payments within seven days of the month following the
date in which the income was obtained each time; and make clearing-up settlement of the payments within three months after a tax
year ends.
Article 18
A taxpayer who obtains incomes from abroad shall make tax declaration to the taxation authorities within the territory of China within
30 days after a tax year ends.
Article 19
Except for the circumstances stipulated in Articles 15 to 18 of the present Measures, a taxpayer who should make tax declaration
for obtaining other kinds of income shall make tax declaration to the taxation authorities within seven days of the month following
the date in which the income was obtained.
Article 20
If a taxpayer can not make tax declaration within the stipulated time limit and requires to make the postponement, he/she shall be
handled in accordance with Article 27 of the Law concerning the Administration of Tax Collection and Article 37 of the Detailed
Rules for the Implementation of the Law concerning the Administration of Tax Collection.
Chapter V Methods for Declaration
Article 21
Tax declaration can be made by means of data messages or posts, or directly to the taxation authorities, or by other means consistent
with the provisions as stipulated by the taxation authorities.
Article 22
Where the tax declaration is made by means of data messages, the taxpayer shall keep related paper materials within the time limit
and in accordance with the requirements as stipulated by the taxation authorities .
Article 23
Where the tax declaration is made by means of post mail , the receipts of registered letters issued by the post office shall be the
proof of declaration, and the postmark date shall be taken as the actual date of declaration.
Article 24
A taxpayer may authorize an intermediary institution which is qualified to be the tax agency or someone else to make tax declaration.
Chapter VI Tax Declaration Administration
Article 25
The taxation authority shall publish all sorts of specimens of tax return on its website or place them at its tax service hall for
taking cognizance of tax declarations so as to be freely downloaded or used by taxpayers at any time.
Article 26
The taxation authorities shall remind those taxpayers who obtain an annual income of 120,000 Yuan or more to make self-declaration
by appropriate means within the legal time limit for tax declaration every year.
Article 27
The taxation authority that takes cognizance of tax declarations shall, according to the taxpayers’ declarations, handle the procedures
for collecting, surcharging, refunding and deducting taxes in accordance with the provisions.
Article 28
The taxation authorities shall draw tax paid certificates in accordance with the corresponding provisions for those taxpayers who
have made tax declaration and paid taxes.
Article 29
The taxation authorities shall keep the tax declaration information secret for the taxpayers in accordance with the law.
Article 30
Where a taxpayer changes the place for tax declaration, he shall report it to the former taxation authorities for archival filing,
and the former taxation authorities shall timely send the information about the taxpayer’s changing of the place for tax declaration
to the new taxation authorities.
Article 31
The taxation authorities shall set up tax payment archives for the taxpayers who have made tax declaration, and shall implement dynamic
administration.
Chapter VII Legal Liabilities
Article 32
Where a taxpayer fails to make tax declaration or submit tax payment materials within the stipulated time limit, it shall be handled
in accordance with Article 62 of the Law concerning the Administration of Tax Collection.
Article 33
Where a taxpayer forges, alters, conceals or illegally destroys accounting books or bookkeeping documentations, or overstates expenses
or does not state or understates revenues in the accounting books, or refuses to make tax declaration after having been informed
by the taxation authority to do so or makes spurious tax declaration, refuses to pay or underpays the taxes payable, it shall be
handled in accordance with Article 63 of the Law concerning the Administration of Tax Collection.
Article 34
Where a taxpayer fabricates any spurious tax calculation basis, it shall be handled in accordance with Paragraph 1 of Article 64
of the Law concerning the Administration of Tax Collection.
Article 35
Where a taxpayer obtains taxable income that should be withheld by a withholding agent, but the withholding agent fails to withhold
or collect the taxes which should have been withheld or collected, it shall be handled in accordance with Article 69 of the Law
concerning the Administration of Tax Collection.
Article 36
Where a tax official has any self-seeking misconduct or duty negligence, and fails to collect or under-collect the taxes payable,
he/she shall be handled in accordance with Paragraph 1 of Article 82 of the Law concerning the Administration of Tax Collection.
Article 37
Where a tax official abuses his/her official capacity and raises difficulties for taxpayers on purpose, he/she shall be handled in
accordance with Paragraph 2 of Article 82 of the Law concerning the Administration of Tax Collection.
Article 38
Where a taxation authority or tax official fails to keep secrets for taxpayers, it shall be handled in accordance with Article 87
of the Law concerning the Administration of Tax Collection.
Article 39
Where a tax agent violates the tax laws or administrative regulations, causing taxpayers fail to pay or underpay taxes, he/she shall
be handled in accordance with Article 98 of the Detailed Rules for the Implementation of the Law concerning the Administration of
Tax Collection.
Article 40
Any other tax-related violation shall be handled in accordance with the related tax laws and regulations.
Chapter VIII Supplementary Provisions
Article 41
The tax declaration returns shall be uniformly printed by the local taxation bureau of each province, autonomous region, municipality
directly under the Central Government or city specifically designated in the state plan in accordance with the specimens as stipulated
by the State Administration of Taxation.
Article 42
Other matters concerning tax declaration shall be governed by the Law in respect of the Administration of Tax Collection, the Individual
Income Tax Law and other related laws and regulations.
Article 43
The tax declaration of an annual income of 120,000 Yuan or more as stipulated in Subparagraph 1 of Article 2 of the present Measures
shall come into force as of January 1, 2006 in accordance with the time for implementation as stipulated in the Decision concerning
Revising the Individual Income Tax Law of the People’s Republic of China which is adopted at the 18th meeting of the Standing Committee
of the 10th National People’s Congress.
Article 44
The provisions in respect of tax declaration under the circumstances as stipulated in Subparagraphs (2) to (4) of Article 2 of the
present Measures shall come into force as of January 1, 2007, and the Circular of the State Administration of Taxation concerning
Printing and Distributing the Provisional Measures for the Self-declaration of Individual Income Tax (Guo Shui Fa [1995] No. 077)
shall be concurrently abolished.
Form 1 Individual Income Tax Return
Form 1
Individual Income Tax Return
For
individuals having an annual income of over 120,000 RMB Yuan
Taxpayer’s IDnumber:
Taxpayer’s name signature/stamp:
Income year:
Date of filing:
onetary unit: RMB Yuan
|
Taxpayer’s name |
|
Nationality |
|
ID number |
|
ID Type |
|
|
Date
of arrival in China |
|
Profession |
|
Employer |
|
Habitual residence |
|
|
Address
in China |
|
|
|
P.C. |
|
Tel. |
|
|
Items
of income |
Annual Income |
Tax payable |
e027732002110520021201The China Securities Regulatory Commission, the People’s Bank of ChinaDecree of the China Securities Regulatory Commission (CSRC) and the People’s Bank of China (PBC)No.12The Interim Measures on the Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors is hereby
promulgated and will enter into force as of December 1, 2002.CSRC Chairman Zhou XiaochuanPBC Governor Dai XianglongNovember 5, 2002epdf/e02916.pdfI, Hforeign institution, investor, securities investment, qualification, custody, registration, clearance, settlement, capital, funde02916Interim Measures on the Administration of Domestic Securities Investment by Qualified Foreign Institutional InvestorsChapter I General ProvisionsArticle 1 Pursuant to relevant laws and administrative regulations, the Measures is enacted in order to regulate the investment activities of
qualified foreign institutional investors in the securities market within the PRC customs territory, and to promote the development
of China’s securities market.Article 2 Qualified foreign institutional investors (hereinafter referred to as QFIIs) stated in the Measures refer to fund management institutions,
insurance companies, securities companies and other assets management institutions outside the PRC customs territory which meet the
qualifications stipulated in the Measures, and have been approved by the China Securities Regulatory Commission (hereinafter referred
to as the CSRC) to invest in China’s securities market and granted investment quotas by the State Administration of Foreign Exchange
(hereinafter referred to as the SAFE).Article 3 QFIIs shall mandate domestic commercial banks as custodians to manage assets, and shall entrust domestic securities companies to handle
securities trading activities within the PRC customs territory.Article 4 QFIIs shall comply with laws, regulations and other relevant rules of the PRC.Article 5 The CSRC and the SAFE shall, in accordance with laws, supervise and govern the securities investment activities by the QFIIs within
the PRC customs territory.Chapter II Qualifications and Approval ProceduresArticle 6 In order to qualify as a QFII, an applicant shall meet the following requirements:1.The applicant is financially stable and of good credit, meet the asset size and other requirements set by the CSRC; and has a risk
control index that complies with the law of, and the requirements of the securities regulatory institutions in the country or region
of its domicile;2.Employees of the applicant shall meet relevant professional qualification requirements of the country or region of its domicile;3.The applicant has a solid corporate governance structure and well defined internal control system, conducts business in accordance
with relevant regulations, and has not been subject to any serious penalties by regulators in the country or region of its domicile
during the most recent three years;4.The country/region where the applicant domiciles shall have a sound legal and regulatory system, and the securities regulator of such
country or region has signed a Memorandum of Cooperation and Understanding and maintains an effective co-operative relationship in
supervision with the CSRC; and5.Any other requirements prescribed by the CSRC based on prudential regulatory principles.Article 7 The asset size requirements and other requirements in the preceding article are: Fund management institutions: minimum five years
experience in funds business and no less than US$10 billion assets under management in the most recent fiscal year; Insurance companies:
minimum 30 years experience in insurance business, no less than US$1 billion in paid-up capital, and no less than US$10 billion securities
assets under management in the most recent fiscal year; Securities companies: minimum 30 years experience in securities business,
no less than US$1 billion in paid-up capital, and no less than US$10 billion securities assets under management in the most recent
fiscal year; Commercial banks: ranking in the top 100 globally in terms of total assets, no less than US$10 billion securities assets
under management in the most recent fiscal year. The CSRC may adjust the aforementioned asset size and other requirements according
to the development of securities market.Article 8 In order to apply for qualification as a QFII and for approval of investment quota, the applicant shall , through its custodian, submit
the following documents to the CSRC and the SAFE respectively:1.A written application (including the applicant’s basic information, investment quota applied for and investment plan, etc.);2.Documents certifying compliance with the requirements prescribed in Article 6 of the Measures;3.A draft of custodianship agreement signed with the custodian;4.Audited financial statements for the most recent three years;5.A statement on the source of funds and a commitment letter of no repatriation of investment during the approval period;6.A letter of authorization from the applicant; and7.Other documents required by the CSRC and the SAFE. If the above documents are prepared in a foreign language, a Chinese translation
or a Chinese summary shall be attached.Article 9 The CSRC shall decide whether to approve or not to approve the application within fifteen working days after receipt of the complete
set of application documents. A securities investment license shall be granted to the applicant that is approved; a written notification
shall be sent to the applicant that is not approved.Article 10 Upon receipt of the securities investment license, the applicant shall apply through its custodian to the SAFE for the investment
quota. The SAFE shall decide whether to approve or not to approve the application within fifteen working days after receipt of the
complete set of application documents. If approved, the SAFE will send the applicant a written notice of the approved investment
quota and issue to the applicant a foreign exchange registration certificate; if not, the applicant will be sent a written notification.
The securities investment license shall automatically become invalid if the applicant fails to obtain the foreign exchange registration
certificate within one year after it has obtained the securities investment license.Article 11 To encourage long- and medium-term investment, priority shall be given to China’s closed-end funds that meet the requirements set
forth in Article 6 of the Measures, or pension funds, insurance funds, and mutual funds that have solid track records of investment
in other markets.Chapter III Custody, Registration and ClearanceArticle 12 A custodian shall meet the following requirements:1.Having a dedicated custody department;2.Having no less than RMB 8 billion in paid-up capital;3.Having sufficient professionals who are familiar with custodial business;4.Having facilities for safekeeping all fund assets;5.Having secure and efficient delivery and trading capabilities;6.Being qualified as a designated foreign exchange bank and for conducting RMB business;7.Having no record of severe violation of foreign exchange administrative rules in the most recent three years. Local branches of foreign-funded
commercial banks that have continuously operated for more than three years may apply for acting as a custodian, with its paid-in
capital calculated with reference to its offshore head office.Article 13 Qualification as a custodian must be examined and approved by the CSRC, the People’s Bank of China (hereinafter referred to as the
PBC) and the SAFE.Article 14 A domestic commercial bank shall submit the following documents to the CSRC, the PBC and the SAFE for custodian license approval:1.A letter of application;2.A copy of its financial business license;3.The management system for its custody business;4.Documents certifying that it has an efficient and high-speed information technology system; and5.Other documents required by the CSRC, the PBC and the SAFE. The CSRC, in consultation with the PBC and the SAFE, shall review the
application and decide whether to approve it or not.Article 15 A custodian shall perform the following responsibilities:1.Safekeeping all assets entrusted by a QFII;2.Handling foreign exchange sale, purchase, receipt and payment, and Renminbi clearance business for the QFII;3.Monitoring the investment activities of the QFII, and reporting in time to the CSRC and the SAFE in case its investment instructions
are found to have violated laws or regulations;4.Reporting to the SAFE the QFII’s inward/outward remittance of investment principal or proceeds and foreign exchange sale and purchase
within two working days after the remittance is made;5.Reporting to the CSRC and the SAFE on the receipt and payment to and from the QFII’s special Renminbi account within five working
days following the end of each month;6.Preparing an annual financial report on the domestic securities investment of the QFII for the previous year and submitting the same
to the CSRC and the SAFE within three months following the end of each fiscal year;7.Preserving materials related to the QFII’s inward/outward remittance, foreign exchange conversion, foreign exchange receipt and payment,
and fund movement records for no less than fifteen years;8.Other responsibilities stipulated by the CSRC, the PBC and the SAFE according to the principles of prudential supervision.Article 16 A custodian shall strictly segregate its self-owned assets from the assets that is entrusted to manage. A custodian shall keep separate
accounts for each QFII and manage those accounts separately. Each QFII shall entrust only one custodian.Article 17 A QFII shall entrust the custodian to apply on its behalf for the opening of a securities account at a securities registration and
settlement institution. The custodian shall submit the letter of authorization from the QFII and its securities investment business
license for account opening and shall file relevant information with the CSRC for record within five working days after the opening
of such securities account. The QFII shall entrust the custodian to open an RMB funds settlement account at the securities registration
and settlement institution to settle funds with this institution. The custodian shall be responsible for funds settlement of the
QFII’s domestic securities investment, and file relevant information with the CSRC and the SAFE for record within five working days
after the opening of such RMB account.Chapter IV Investment OperationArticle 18 A QFII may invest in the following RMB denominated financial instruments within its approved investment quota:1.Stocks listed and traded on stock exchanges, except for Domestically Listed Foreign Currency Shares (B shares);2.Government bonds listed and traded on stock exchanges;3.Convertible bonds and corporate bonds listed and traded on stock exchanges;4.Other financial instruments approved by the CSRC.Article 19 A QFII may entrust a domestically registered securities company to manage its domestic securities investment. Each QFII shall entrust
only one securities company.Article 20 A QFII shall comply with the following rules for its domestic securities investment :1.An individual QFII shall invest no more than 10 percent of the total amount of shares of a single listed company;2.The total shares held by all QFIIs in a single listed company shall be no more than 20 percent of the total amount of shares of the
company. The CSRC may adjust the above percentages according to the development of securities market.Article 21 A QFII’s domestic securities investment shall be in compliance with the Foreign Investment Industry Guideline.Article 22 The securities company shall keep such materials as the records of consummated transactions and transaction activities of a QFII for
no less than fifteen years.Chapter V Funds ManagementArticle 23 With the approval of the SAFE, a QFII shall open a special Renminbi account at the custodian’s place of business. The custodian shall
report relevant information to the CSRC and the SAFE for record within five business days after the opening of the special Renminbi
account.Article 24 The receipts of the special Renminbi account shall include: funds from sale of foreign exchange (foreign exchange coming from overseas
with the accumulative amount of such sale not exceeding the approved investment quota), proceeds from sale of securities, cash dividends,
interest on current deposits, and interest on bonds. Payments of the special Renminbi account shall include: funds to purchase securities
(including stamp duty, processing fees, etc.), domestic custodian and management fees, and funds to purchase foreign exchange (for
outward remittance of investment principal and returns). Funds in the special Renminbi account shall not be used as loans or as collateral.Article 25 A QFII shall make inward remittance of principal within three months after obtaining from the CSRC the securities investment license,
and the principal shall be directly deposited in the special Renminbi account after conversion. The remitted principal by a QFII
shall be in any freely convertible currency approved by the SAFE; and the amount of such principal shall be limited to the investment
quota approved by the SAFE. If a QFII fails to remit in the full amount of its investment quota approved by the SAFE within three
months after obtaining the foreign exchange registration certificate, the actually remitted amount shall be regarded as the approved
investment quota. The gap between the originally approved investment quota and the actually remitted amount shall not be filled by
any new remittance until approval has been obtained for a new investment quota.Article 26 If a QFII is a China’s closed-end fund management institution, such QFII may, three years after the inward remittance of principal,
entrust its custodian to apply to the SAFE with required documentation for purchase of foreign exchange to remit principal abroad
by installments. Each installment shall not exceed twenty percent of the total investment principal, and the interval between two
successive installments shall not be less than one month. Other QFIIs may, one year after the inward remittance of principal, entrust
their custodians to apply to the SAFE with the required documentation for the purchase of foreign exchange to remit principal abroad
by installments. Each installment shall not exceed twenty percent of the total investment principal, and the interval between two
successive installments shall not be less than three months. The said QFII shall be the overseas recipient of the above-mentioned
outward remittance.Article 27 A QFII that has remitted in principal for more than three months but less than one year may, after submitting a transfer application
and a transfer agreement to the CSRC and the SAFE and obtaining their approval, transfer its investment quota to other QFIIs or other
applicants that qualify under Article 6 of the Measures. After obtaining the approval of investment quota from the SAFE and the
securities investment business license, the transferee may remit in the amount of principal to fill the gap between the approved
quota and the actually transferred assets if the transferred assets are less than the investment quota approved by the SAFE.Article 28 If a QFII needs to remit in new principal after it has remitted abroad a part or ?all of the principal, it shall apply for a new investment
quota.Article 29 If a QFII needs to purchase foreign exchange to remit abroad the realized aftertax profits for the previous fiscal year that have
been audited by a Chinese certified public accountant, it shall entrust its custodian to file an application with the SAFE fifteen
days prior to the proposed purchase by submitting the following documents:1.A written application for outward remittance;2.Annual financial statement for the year when the profits have been realized;3.An audit report issued by a Chinese certified public accountant;4.Resolution or other valid legal document on profit distribution;5.Tax payment certificate; and6.Other documents required by the SAFE. The said QFII shall be the overseas recipient of the above-mentioned outward remittance.Article 30 The SAFE may adjust the period for remittance of principal and realized profits by a QFII to meet the need of the State to balance
the receipt and payment of foreign exchange.Chapter VI Supervision and ManagementArticle 31 The CSRC and the SAFE shall conduct annual review of the securities investment license and foreign exchange registration certificate
held by a QFII.Article 32 The CSRC, the PEC and the SAFE may request QFIIs, custodians, securities companies, stock exchanges, and securities registration and
settlement institutions to provide materials and information related to the investment activities of QFIIs in China; and conduct
on-site inspection, if necessary.Article 33 Stock exchanges and the securities registration and settlement institutions may as required by circumstances formulate new operational
rules or modify existing operational rules with respect to the securities investment of QFIIs in China. Such rules shall be implemented
after obtaining approval from the CSRC.Article 34 A QFII shall report to the CSRC, the PBC and the SAFE for record within five working days in any of the following circumstances:1.Change of custodians;2.Change of legal representatives;3.Change of controlling shareholders;4.Adjustment of registered capital;5.Involvement in litigation or other major events;6.Severe penalty being subjected to outside PRC customs territory; and7.Other circumstances defined by the CSRC and the SAFE.Article 35 A QFII shall apply for a new securities investment license in any of the following cases:1.Change of its institutional name;2.Acquisition by or merger with other institution(s);3.Other circumstances defined by the CSRC and the SAFE.Article 36 A QFII shall surrender its securities investment license and foreign exchange registration certificate to the CSRC and the SAFE respectively
in any of the following cases:1.All principal has been remitted out;2.Investment quota has been transferred;3.The legal entity is proposed to be dissolved, has entered into bankruptcy procedures, or its assets have been taken over by a trustee;4.Other circumstances defined by the CSRC and the SAFE. The securities investment business license and the foreign exchange registration
certificate shall become invalid automatically if they fail to pass the annual review conducted in accordance with Article 31 of
the Measures. The QFII shall return the securities investment business license and the foreign exchange registration certificate
respectively as is stipulated in the aforesaid paragraph.Article 37 In accordance with their respective jurisdiction, the CSRC, the PBC and the SAFE shall give warning to or impose fine on any QFII,
custodian, securities company that has violated the Measures. The same violation, however, shall not be subject to two or more administrative
punishments.Chapter VII Supplementary ProvisionsArticle 38 The Measures shall also apply to institutional investors established in the Hong Kong Special Administrative Region, the Macao Special
Administrative Region and the Taiwan Region that engage in securities investment on the mainland.Article 39 The Measures shall enter into force as of December 1, 2002.
|
|
The China Securities Regulatory Commission, the People’s Bank of China
2002-11-05
|
|
|
Amendments to the Constitution of the People’s Republic of China
|
|
|
|
|
|
(Adopted at the Second Session of the Tenth National People’s Congress and promulgated for implementation by the
Announcement of the National People’s Congress on March 14, 2004)
Article 18 In the seventh paragraph of the Preamble to the Constitution, “under the leadership of the Communist Party of China
and the guidance of Marxism-Leninism, Mao Zedong Thought and Deng Xiaoping Theory” is revised to read, “under the leadership of the
Communist Party of China and the guidance of Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought
of Three Represents”; “along the road of building socialism with Chinese characteristics” is revised to read, “along the road of
Chinese-style socialism”; and after “to modernize the country’s industry, agriculture, national defence and science and technology
step by step” is added “and promote the coordinated development of the material, political and spiritual civilizations”. The whole
paragraph is revised accordingly, which reads, “The victory in China’s New-Democratic Revolution and the successes in its socialist
cause have been achieved by the Chinese people of all nationalities, under the leadership of the Communist Party of China and the
guidance of Marxism-Leninism and Mao Zedong Thought, by upholding truth, correcting errors and surmounting numerous difficulties
and hardships. China will be in the primary stage of socialism for a long time to come. The basic task of the nation is to concentrate
its effort on socialist modernization along the road of Chinese-style socialism. Under the leadership of the Communist Party of China
and the guidance of Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory and the important thought of Three Represents, the
Chinese people of all nationalities will continue to adhere to the people’s democratic dictatorship and the socialist road, persevere
in reform and opening to the outside world, steadily improve socialist institutions, develop the socialist market economy, develop
socialist democracy, improve the socialist legal system and work hard and self-reliantly to modernize the country’s industry, agriculture,
national defence and science and technology step by step and promote the coordinated development of the material, political and spiritual
civilizations, to turn China into a socialist country that is prosperous, powerful, democratic and culturally advanced.”
Article 19 The second sentence of the tenth paragraph of the Preamble to the Constitution, which reads, “In the long years
of revolution and construction, there has been formed under the leadership of the Communist Party of China a broad patriotic united
front which is composed of the democratic parties and people’s organizations and which embraces all socialist working people, all
patriots who support socialism, and all patriots who stand for the reunification of the motherland. This united front will continue
to be consolidated and developed”, is revised to read, “In the long years of revolution and construction, there has been formed under
the leadership of the Communist Party of China a broad patriotic united front which is composed of the democratic parties and people’s
organizations and which embraces all socialist working people, all builders of socialism, all patriots who support socialism, and
all patriots who stand for the reunification of the motherland. This united front will continue to be consolidated and developed.”
Article 20 The third paragraph of Article 10 of the Constitution, which reads, “The State may, in the public interest, requisition
land for its use in accordance with the law”, is revised to read, “The State may, in the public interest and in accordance with law,
expropriate or requisition land for its use and make compensation for the land expropriated or requisitioned.”
Article 21 The second paragraph of Article 11 of the Constitution, which reads, “The State protects the lawful rights and interests
of the non-public sectors of the economy such as the individual and private sectors of the economy, and exercises guidance, supervision
and control over the individual and the private sectors of the economy”, is revised to read, “The State protects the lawful rights
and interests of the non-public sectors of the economy such as the individual and private sectors of the economy. The State encourages,
supports and guides the development of the non-public sectors of the economy and, in accordance with law, exercises supervision and
control over the non-public sectors of the economy.”
Article 22 Article 13 of the Constitution, which reads, “The State protects the right of citizens to own lawfully earned income,
savings, houses and other lawful property.” “The State protects according to law the right of citizens to inherit private property”,
is revised to read, “Citizens’ lawful private property is inviolable.” “The State, in accordance with law, protects the rights of
citizens to private property and to its inheritance.” “The State may, in the public interest and in accordance with law, expropriate
or requisition private property for its use and make compensation for the private property expropriated or requisitioned.”
Article 23 One paragraph is added to Article 14 of the Constitution as the fourth paragraph, which reads, “The State establishes
a social security system compatible with the level of economic development.”
Article 24 One paragraph is added to Article 33 of the Constitution as the third paragraph, which reads, “The State respects
and preserves human rights.” The original third paragraph is changed to be the fourth.
Article 25 The first paragraph of Article 59 of the Constitution, which reads, “The National People’s Congress is composed
of deputies elected from the provinces, autonomous regions and municipalities directly under the Central Government and of deputies
elected from the armed forces. All the minority nationalities are enpost_titled to appropriate representation”, is revised to read,
“The National People’s Congress is composed of deputies elected from the provinces, autonomous regions, municipalities directly under
the Central Government, and special administrative regions, and of deputies elected from the armed forces. All the minority nationalities
are enpost_titled to appropriate representation.”
Article 26 The 20th subparagraph of Article 67 of the Constitution on the functions and powers of the Standing Committee of
the National People’s Congress, which reads, “(20) to decide on the imposition of martial law throughout the country or in particular
provinces, autonomous regions, or municipalities directly under the Central Government” is revised to read, “(20) to decide on entering
into the state of emergency throughout the country or in particular provinces, autonomous regions, or municipalities directly under
the Central Government.”
Article 27 Article 80 of the Constitution, which reads, “The President of the People’s Republic of China, in pursuance of the decisions
of the National People’s Congress and its Standing Committee, promulgates statutes, appoints or removes the Premier, Vice-Premiers,
State Councillors, Ministers in charge of ministries or commissions, the Auditor-General and the Secretary-General of the State Council;
confers State medals and post_titles of honour; issues orders of special pardons; proclaims martial law; proclaims a state of war; and
issues mobilization orders”, is revised to read, “The President of the People’s Republic of China, in pursuance of the decisions
of the National People’s Congress and its Standing Committee, promulgates statutes, appoints or removes the Premier, Vice-Premiers,
State Councillors, Ministers in charge of ministries or commissions, the Auditor-General and the Secretary-General of the State Council;
confers State medals and post_titles of honour; issues orders of special pardons; proclaims entering of the state of emergency; proclaims
a state of war; and issues mobilization orders.”
Article 28 Article 81 of the Constitution, which reads, “The President of the People’s Republic of China receives foreign diplomatic
representatives on behalf of the People’s Republic of China and, in pursuance of the decisions of the Standing Committee of the National
People’s Congress, appoints or recalls plenipotentiary representatives abroad, and ratifies or abrogates treaties and important agreements
concluded with foreign states”, is revised to read, “The President of the People’s Republic of China, on behalf of the People’s Republic
of China, engages in activities involving State affairs and receives foreign diplomatic representatives and, in pursuance of the
decisions of the Standing Committee of the National People’s Congress, appoints or recalls plenipotentiary representatives abroad,
and ratifies or abrogates treaties and important agreements concluded with foreign states.”
Article 29 The 16th subparagraph of Article 89 of the Constitution on the functions and powers of the State Council, which
reads, “(16) to decide on the imposition of martial law in parts of provinces, autonomous regions, and municipalities directly under
the Central Government” is revised to read, “(16) in accordance with the provisions of law, to decide on entering into the state
of emergency in parts of provinces, autonomous regions, and municipalities directly under the Central Government.”
Article 30 Article 98 of the Constitution, which reads, “The term of office of the people’s congresses of provinces, municipalities
directly under the Central Government, counties, cities and municipal districts is five years. The term of office of the people’s
congresses of townships, nationality townships and towns is three years” is revised to read, “The term of office of the local people’s
congresses at various levels is five years.”
Article 31 The post_title of the fourth chapter of the Constitution, which reads “The National Flag, the National Emblem and the Capital”,
is revised to read “The National Flag, the National Anthem, the National Emblem and the Capital”. And one paragraph is added to Article
136 of the Constitution as the second paragraph, which reads, “The national anthem of the People’s Republic of China is the March
of the Volunteers.”
|
|
|
|
| Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress. |
|
|
|
