No Need to Apply for Ex-Approval For Delay Payment under Trading Credit Now

According to a Notice issued by the State Administration of Foreign Exchange (hereinafter referred to as the “SAFE”) on 23 May 2011, management measures for some foreign exchange transactions under capital accounts are adjusted. These adjustments relax the management on some foreign exchange transactions to certain degree by comparison with the rules before…

For Employee’s Annual One-off Bonuses, Individual Income Tax Partially Borne by Employers Shall Also Be Taxed

According to a notice issued by SAT on April 28th 2011, for employees’ annual one-off bonuses, individual income tax partially borne by employees is regarded as employee’s income and shall be included in employee’s income to pay individual income tax.
Lee & Lee Associates Comments:  Employee shall pay individual income tax for the individual income tax that is borne by employer has been regulated before and what the notice above clarifies is the detail method of calculating…

Foreign Investors Can Invest RMB to China

According to a notice issued by the Ministry of Commerce on February 25th 2011, foreign investors can invest with Renminbi in China to establish new enterprise, increase registered capital of the existing enterprise, purchase domestic enterprises, provide loans, etc …

New Tool to Prevent FX Risk -Option Trading of RMB Against Foreign Currency

SAFE recently opened the options trading market for RMB against foreign currency.

Lee & Lee Associates Comments: Domestic enterprises which shall conduct foreign currency transactions frequently or have material foreign currency assets or liabilities may be exposed to high foreign exchange risk and can consider reduce risk through tools such as that developed by SAFE above. Relevant Rule…

How to Pay Tax for Untaxed Previous Years’ Employer’s Contribution of Employers Annuity

According to a supplementary provision issued by SAT on Jan. 30th 2011, method to calculate unpaid tax for employer’s contribution to the employer’s annuity in previous years is clarified.
Lee & Lee Associates Comments:   The administration on taxation of employers’ Annuity is strengthened. Even the relevant tax is individual income tax, since the employer shall fulfill the withholding responsibility, the cost of…