Ella's blog

Special Preferential Tax Policies in Qianhai Shenzhen-Hongkong Modern Service Industry Cooperation Zone ——Annie Lyu

 A young man just had a job in Qianhai, Nanshan District in Shenzhen couple of days before, and found there were construction works everywhere. He was told that the headquarter of the company he was employed will move in Qianhai in a very short time. Not only his company, many companies may have the thought to move in Qianhai area, due to a Special Preferential Tax Policies there. Let's take a look at the policy.

What is Civil Disobedience——Annie Lyu

 Recently, Hong Kong Bar Association made a statement on the rule of law and civil disobedience. Let's see what is Civil Disobedience in Wikipedia.

Civil Disobedience is the active, professed refusal to obey certain laws, demands, or commands of a government, or of an occupying international power. Civil disobedience is sometimes, though not always, defined as being nonviolent resistance.

Shall the company pay Trade Union expenditure?---Denise Xia

One of our client’s companies got a notice from the Tax Bureau that Trade Union expenditure shall be paid accordingly. And the Trade-Union expenditure being paid is 2% of the employees’ wage, which is not a small cost.
So what is Trade Union? 
It is a union organized by the people who have the same interest on the purpose of negotiating the salary, work time and work condition with the employers.
What kind of people or company shall pay the Trade Union expenditure?
According to Trade Union law of the people’s republic of China, ChapterⅴTrade-Union funds and Property, Article 42 The source of Trade Union fund;
The source of Trade Union fund includes:
1. Membership dues paid by union members;
2. The units established Trade-Union organization press 2% of all employees’ wage to the Trade Union, or pay through Tax Bureau.
3. Paid income from the enterprise or public institution belongs to Trade union.
4. Government allowance.
5. Others income. 

Regulations on issuing RMB share of China enterprises in oversea market is drafting---Denise Xia


People’s bank of China is drafting RQDII (RMB Qualified Domestic Institution Investor) mechanism to push forward QDII2 (Qualified Domestic Institution Investor) mechanism, which means direct invest in oversea on persons and issue RMB share of China enterprises in oversea market will be permitted in the near future, according to a regulator officer on central currency policy.

According to statics of SWIFT (Society for Worldwide Interbank Financial Telecommunications), RMB has become the 2nd Trade Finance Currency and the 7th international payment currency in the world.

Accompanied by the accelerated process of RMB internationalization, the regulators is making two-way open capital market of China.


Shenzhen Anti-fraud hotline 0755-81234567---Shirley Pan

In the past few months, I got some fraud phone calls, such as your son was kidnapped, your ID card was used by criminal in Xia Men for money laundering, etc. What was most striking to me was the cheater can spell my whole name, ID number, my child’s name, the name of my son’s university, also let me hear the child crying voice.

I believe most of people lives in Shenzhen received one or more phone calls, short messages, emails from fraudsters. Some of them really have been cheated. It’s reported that some of scams operated through social media platforms including QQ, WeChat, and son on..

How to identify whether it is fraud? Shenzhen Police reminding: normally, incoming calls or test messages involving key words or claims-such as underpayment of phone bills, malicious overdrafts, information leakage, duty paid award, money laundering and insurance offers-they could be fraud. Such scams usually require the victims to transfer their money to another account. 

When receiving phone calls or some text messages from fraudsters, below four ways for your reference. 

China’s Property-Value Bubble is bursting?---Denise Xia

China Banking Regulatory Commission recently revised the Measures for Implementation of the Matters Subject to Administrative Licensing for Foreign Banks.

Pursuant to the Measures, administrative licensing is no longer required for matters such as provision of electronic banking services. Moreover, the licensing procedures are to be simplified, and prudential supervision is to be enhanced.

The purpose of the revise is to simplify the licensing procedures and shorten licensing scopes of foreign banks. And making full efforts to harmonize the market access of foreign banks and promote fair competition also.

That means more foreign banks will show in China. And more Chinese people will transfer its money to foreign banks if the foreign banks policy is more competitive and convenient than domestic banks.

Prenuptial Agreement in China -- Ella Xu

More and more expacts living in China get married with local Chinese people. They are attractive by the unique oriential temperament and culture when they decide to tie the knot with the lovers.  But, we'd like to remind you to stop here for a minute to consider signing a Prenuptial Agreement with your future spouse.                                                                 

Especially when you meet any of the conditions below: 

1) Having marriage before; 2) Having kids or offspring; 3) Having assests/property abroad; 4) Having or will have Company Shares; 5) Having debt; 6) Having or will have promotion or huge development; 7) Having commercial insurance abroad.

When we help client draft this kind of cross-border Prenuptial Agreement, more emphasis will be paid on the regional and combination of the legal system of the two countries. 

SAIC called off Enterprise Annual Inspection---Denise Xia

State Administration for Industry and Commerce (SAIC) called off the annual inspection of LLC, share limited company, joint stock limited partnership, partnership, and etc. from 1 March 2014.

At the meanwhile, Annual report will be replaced.

Credit information publicity platform was established last year to fulfill the report online.  Thus, the enterprise could report to the registered bureau through the platform annually within the deadline at any time. But the enterprise shall be liability to the investor’s information, asset liability and registration which is included in the annual report.

The government believes that annual report will bring more convenient to the enterprises. The enterprise could finish the report by internet instead of handing the papers to the government offices.

How to Enforce the Judgement of Foreign Country in China -- Ella Xu

As the international trend of China is growing faster and faster, lots of dispute between China and other countries show up. When the problem happens, the foreigner or the Chinese will choose to file a lawsuit locally if the local court have the jurisdication.  But, it is very difficult to enforce the judgement abroad for a long time.  Most of the result were you won the case after paying for high lawyer's fee and your time, but you can not get back your benefit with that piece of judgement.


Now, we'd like to recommend you to use the legal service of Intermediate Court of PRC who can help you enforce your judgement abroad.  The conditions of applying this service is that the two countries have signed Bilaterial Agreement.  Hong Kong, Macao and Taiwan are also included.  It will be looked as a valid judgement locally if your application is succesful。

SAFE to simplify rules on FDI --- Denise Xia

The State Administration of Foreign Exchange (SAFE) will simplify the rules governing foreign direct investment (FDI). 24 regulations for foreign exchange registration, opening accounts, remittance, clearing and settlement will be abolished according to the Notice(Huifa【2013】No.21) which is announced by SAFE.
With coming the notice, a new system is offered for FDI and outbound direct investment(ODI). That means the old Foreign Exchange Registration IC Card will be only used to annual renewal. For FDI bank business handling, the enterprise shall go to the SAFE to apply Business Handling Warrant first.


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