Shanghai Issues New Establishment Policies to Attract Multinational Companies
In this Special Topic Newsletter, we look at Policy Amendments that are encouraging multinational companies to establish regional headquarters in Shanghai.As China becomes more and more active in the global market, Shanghai Municipal People’s Government recognizes that Shanghai plays a leading role in China’s opening-up reform. Through amending the policy framework for encouraging multinational companies (MNCs) to set up regional headquarters (Regional HQ) in Shanghai, with the Circular No. 9, Shanghai government relaxes the business scope and the assessment criteria for regional headquarters. Consequently, Regional HQs will now have more autonomy in prioritizing their business activities in order to align with the group’s overall strategy.C&A Advisors pride ourselves on keeping our clients informed and prepared about the constant evolution of Chinese marketplace, please download and read our Special Topic Newsletter to better understand the new policy amendments.
State Administration of Foreign Exchange Requires Banks Report Overseas Transactions over CNY 1,000
The Circular states that, starting from September 1st, 2017, Chinese financial institutions which issue bank cards must collect and report information to the State Administration of Foreign Exchange (SAFE) on the use of their bank cards for all oversaeas transactions greater than CNY 1,000. This also includes cash withdrawals.
EU- China Summit: 200 Geographical Indications to be Protected
During the 19th EU - China Summit, the Directorate General for Agriculture and Rural Development of the European Commission and the Ministry of Commerce of the People's Republic of China met to finish discussing the protection of geographical indications.
New Tax Policies for Venture Capitalists and Angel Investors
Good for taxpayers, the announcement states that a corporate partner who invests in at least two qualified partnership venture captial enterprises is allowed to calculate, in aggregate, the deductible investment amount and the income it has gained.
According to the Measures, a non-resident or a passive non-financial entity controlled by a non-resident, when opening a financial account, must provide a detailed announcement of the name, current home address, country (region) where it's a tax resident, taxpayer identification number, place and date of birth etc., in order to prove the tax resident's identity (or the identity of the account owner or account controller).