Establishment of Enterprise
1 How to Invest
For foreign investors, any of the following business modes may be
used to establish a business entity in Beijing: a joint venture,
cooperation, solely foreign-owned enterprises; a foreign-funded
joint-stock limited company, cooperative development, foreign
companies seeking investment, or a group company for foreign investment
enterprises. To attract and encourage foreign investment, Beijing is
striving to improve its investment environment and to explore and
expand the practice of BOTs (build-operate-transfers) and will engage
in multinational mergers and new forms of investment.
2 Limit of Authority for Examination and Approval
(1) According to categories listed in the Industries List for Foreign
Investment, encouraged projects and allowable projects with total
investments of US$30 million-$100 million (including added-capital,
as with the projects listed immediately below) as well as
restrictive projects with a total investment of less than US$500
million shall be approved by the Development and Planning Committee
of the People’s Government of Beijing Municipality (MDPC). Project
applications for encouraged projects and allowable projects with
a total investment above US$100 million as well as restrictive
projects with total investments above US$500 million are audited
by the Beijing Commission for Development and Reform of the People’s
Government of Beijing Municipality and submitted to the National
Development and Reform Commission of the People’s Republic of China
for final approval.
(2) Encouraged projects and allowable projects with investments valued
at less than US$30 million are approved by the Beijing Economic
and Technological Development Area (BDA), the Beijing Tianzhu
Export-Oriented Processing Zone and the Development and Reform
Department of each district and county.
(3) The establishment and alteration of foreign-funded enterprises and
relevant articles of contracts and related revisions (inclusive
of foreign-investment merging) shall be approved by relevant
municipal, district, or county bureaus of commerce or the Beijing
Economic and Technological Development Area (BDA), the Tianzhu
Export-Oriented Processing Zone or the Zhongguancun Science Park
Haidian Administrative Commission. The authority of each of the
said institutions allows them to encourage and allow enterprises
with total investments (including added capital and mergers, as
with projects listed below) of less than US$30 million, which shall
be approved by responsible departments of commerce and foreign
investment authorities in each relevant district, development zone,
export-oriented processing zone or science and technology park.
Encouraged and allowable enterprises with an investment of US$30
million (inclusive)ÐUS$100 million, as well as restricted
enterprises with total investments of less than US$50 million,
shall be approved by the Beijing Municipal Bureau of Commerce.
Encouraged and allowable enterprises with total investments
exceeding US$100 million as well as restricted enterprises with
total investments above US$500 million shall be audited by the
Beijing Municipal Bureau of Commerce and then submitted to the
Ministry of Commerce of the PRC for final approval.
If additional application procedures and approaches for foreign
investment projects have been stated in State statutes or
administrative regulations, the said procedures and approaches
must be followed. Foreign-investment projects that require the
State and the city’s consideration, which are in accord with the
gradual opening up trend, must comply with State regulations.
3 Procedures for Enterprise Establishment
Below is a procedural chart for the establishment of joint ventures,
cooperative and completely foreign-funded enterprises.
(1) Selecting investment items and partners
A potential investor may, through diverse channels, establish
contacts with departments in charge of economic and social development
under the municipal government or district-county governments,
enterprises, schools of higher learning, research institutes or
intermediary service agencies to select possible partners for
cooperation or to discuss possible cooperation with them.
(2) Signing cooperative letter of intent
The Chinese and foreign parties to a project should sign a letter
of intent to cooperate.
(3) Provide a project application report
The report should contain a detailed analysis of the firm’s address,
scale of construction and investment, a land-use plan, a funding
mechanism and financing plan, sources of energy, other resources, raw
materials, a transportation plan, external support facilities, a
statement of technologies to be used, a statement of finances and
environmental planning, along with a list of imported equipment, if
any.
(4) Examination and approval of the project application report
1. Limit of authority for examination and approval. See 2. Limit of
Authority for Examination and Approval
2. Channels of submission of foreign-funded projects shall be approved
by provincial or municipal governments according to relevant
regulations
a. Applications from units under the municipal government shall be
submitted to the Municipal Development and Reform Commission (MDRC)
by the departments in charge of such units.
b. Applications from units under a district-country government shall
be submitted to the
MDRC by the district-county development
planning commission.
c. An application from an enterprise without affiliation to a
government department shall be submitted by the development planning
commission of the county or district, BDA and the Beijing Tianzhu
Exporting Products Processing Area where the said enterprise is
based.
d. Whereas a foreign-funded project needs examination and approval
by the National Development and Reform Commission (NDRC), in most
cases the said project shall be submitted by the department in charge
of such projects to the MDRC for initial examination. The said project
shall be submitted to the MDRC after approval is given through initial
examination.
Note: Special industries such as finance and telecommunications must
follow regulations related to those industries.
Appendix: The following documents shall be supplied in submitting
a foreign-funded project to the Municipal Development and Reform
Commission for examination and approval:
a. Application (project proposal);
b. Letter of intent to establish a cooperation signed by the parties
to the project;
c. A feasibility study report on the project;
d. Counterpart of the business licenses issued by the proper Chinese
governmental office or districts authorities detailing the
investors;
e. Letters of credit for the investment contributors, and personal
identity documents of the foreign investors;
f. Documents of certification for the legal representatives of the
investment contributors;
g. Report issued by the authorities having undertaken initial
examination of the proposed project on their opinions and comments
on the said project (to be submitted when deemed necessary);
h. Other documents deemed by the organ of examination and approval as
necessary for submission.
Beijing Municipal Development and Reform Commission
Address: D2, Fuxingmennan Dajie, Beijing
Tel: +86 10 6641 5588-0416
WWW: www.bjpc.gov.cn
The District/County Development and Reform Commissions
District/County
Tel: +86 10
District/County
Tel: +86 10
District/County
Tel: 86 10
Dongcheng District
6407 9927
Shijingshan District
8869 9333
Pinggu District
8999 9157
Xicheng District
8806 4501
Mentougou District
6984 2187
Fangshan District
6937 9331
Xuanwu District
8397 5332
Fengtai District
8365 6312
Huairou District
6964 1622
Chongwen District
6711 0088-3607
Tongzhou District
6954 6553
Changping District
6974 2252
Chaoyang District
6501 2644
Daxing District
6129 8109
Miyun County
6904 2988
Haidian District
8267 5627
Shunyi District
6944 1363
Yanqing County
6910 2445
(5) Pre-registration of application for corporate names
Foreign-funded enterprises should apply to the industrial and
commercial administrative authority for a preliminary registration
of an enterprise’s name when they have had project proposals approved
but not yet signed by the contract regulators.
Required documents and credentials for the preliminary
registration of an enterprise’s name or name change:
1. Application form for the preliminary examination and approval of
the enterprise’s name (or name change).
2. The application form should bear personal ID document copies,
including citizenship identifications, passports, long-term
residence permits, re-entry permits for Hong Kong, Macao and Taiwan
compatriots, and a retirement certificate for military servicemen.
The applicants who meet any of the following conditions should submit
additional documents:
a. Applicant who uses his/her personal name as an enterprise name (the
applicant must be an investor or shareholder in the company) should
provide personal ID documents. It should be noted that the use of
names, or words homophonic to the names of China’s leaders, State
leaders or famous figures, whether past, present or foreseeable
future, is not permitted.
b. In the case of using trademarked characters as enterprise names,
the applicants should submit approval documents validated by the
trademark owner, trademark registration certificate (the
certificate copy bearing the stamp of the registration owner to the
same effect), and qualification certificate of the trademark owner.
(The certificate should bear the official stamp if the owner is a
commercial institution and personal ID copies are required if the
owner is an individual.)
c. If the proposed enterprise name involves the abbreviated or full
name of a renowned enterprise, college or scientific institution,
the permission documents from these entities must be presented
before registration, otherwise the registration will not be accepted.
iv. In the case of applying for an enterprise name being used by
another entity in the same industry, applicants should submit the
current owner’s permission and the sealed copy of the owner’s
business license except when the two parties are in an investment
relation. The authorized name by the current owner may not result
in deception or misunderstanding in the public.
d. If the proposed enterprise name contains the Chinese characters for
“Zhongguancun,” the applicant should present the opinions on the
use of the name to the Office of Zhongguancun Science Park
Construction Leading Team.
e. If the proposed enterprise name contains the Chinese characters of
“Beijing Central Business District,” the applicant should get
permission from the “Administration Committee of the Beijing Central
Business District” prior to registration.
Beijing Municipal Administration of Industry and Commerce
Address: 36, Suzhou Jie, Haidian District, Beijing 100080
Tel: +86 10 8269 0900
WWW: http://www.baic.gov.cn
E-mail: sjbgs@hd315.gov.cn
The District/County Administrations of Industry and Commerce
District/County
Tel: +86 10
District/County
Tel: +86 10
District/County
Tel: 86 10
Dongcheng District
6403 3742
Shijingshan District
6886 3243
Pinggu District
6996 1347
Xicheng District
8808 7657
Mentougou District
6984 2860
Fangshan District
6936 6848
Xuanwu District
8397 5720
Fengtai District
6344 2600
Huairou District
6964 4365
Chongwen District
67072772
Tongzhou District
6954 2545
Changping District
6974 2605
Chaoyang District
5106 9009
Daxing District
6925 3790
Miyun County
6904 2280
Haidian District
8269 2011
Shunyi District
6944 1363
Yanqing County
6914 1535
(6) Examination and approval of contracts and articles of association
and the verification and confirmation of bureaus of commerce that are
required:
Contracts and rules of Sino-foreign joint ventures and cooperations
and rules of foreign-funded companies shall be submitted to the
commercial departments of the related-level government departments
for approval. The following documents from each part of the investors
shall be supplied when applying for examination and approval:
1. Application form for the establishment of a company (application
form for administration approval);
2. Contract and corporate articles of association;
3. Duplicates of business licenses or commercial registration
certificates of the investment contributors;
4. Letters of credit supporting the investment contributors;
5. List of the board of directors and letters of appointment for the
board members;
6. Letters of approval for the pre-registration of the corporate
names;
7. Other documents deemed by the organ of examination and approval
as necessary for submission.
Pre-auditing and approval materials concerning the establishment of
enterprises shall be submitted to responsible departments of related
industries
if
they
are
required
by
State
regulations;
project-application reports, flexibility-research reports or
relevant approvals shall be prepared and submitted if they are legally
required.
Examination and approval of contracts and articles of association
by the commerce department:
Apart from the materials mentioned above, a Letter of Pre-approval
for legal entity code will be needed when applying for approval
certificates.
Beijing Municipal Bureau of Commerce
Address: 190 Chaoyangmennei Dajie, Dongcheng District, Beijing 100010
Tel: +86 10 6523 6688
WWW: http://www.bjmbc.gov.cn
E-mail: xxzx@bjmbc.gov.cn
District/County
Tel: +86 10
District/County
Tel: +86 10
District/County
Tel: 86 10
Dongcheng District
6513 1421
Shijingshan District
8869 9503
Pinggu District
6996 2955
Xicheng District
6801 2353
Mentougou District
6984 2571
Fangshan District
6937 2702
Xuanwu District
8397 6037
Fengtai District
6381 2693
Huairou District
964 5258
Chongwen District
6711 6188
Tongzhou District
6954 3319
Changping District
6974 6220
Chaoyang District
6509 4524
Daxing District
6920 1443
Miyun County
5107 1930
Haidian District
8251 0144
Shunyi District
6944 3513
Yanqing County
6910 1551
(7) Statistical registration
A foreign-funded enterprise shall comply with the procedures of
statistical registration with the government organ of statistics after
obtaining a certificate of approval and before going through the
procedure of industrial and commercial registration and shall provide:
a. An official copy of the certificate of approval;
b. Fill in a Statistical Registration Form for Enterprises (with two
duplicates);
Beijing Municipal Bureau of Statistics
Address: 36 Guang’anmen Nanjie, Xuanwu District, Beijing 100053
Tel: +86 10 8354 7076
Fax: +86 10 8354 7411
WWW: http://www.bjstats.gov.cn
E-mail: bjsbcc@public3.bta.net.cn
District/County Bureaus of Statistics
District/County
Tel: +86 10
District/County
Tel: +86 10
District/County
Tel: 86 10
Dongcheng District
6403 1179
Shijingshan District
8892 0357
Pinggu District
8998 0162
Xicheng District
8806 4651
Mentougou District
6984 3287
Fangshan District
8935 0063
Xuanwu District
8397 6053
Fengtai District
6381 3227
Huairou District
6962 4135
Chongwen District
6711 0088-5002
Tongzhou District
6954 6121
Changping District
6974 2558
Chaoyang District
6509 4423
Daxing District
6129 8972
Miyun County
6904 1432
Haidian District
8848 7161
Shunyi District
8944 5498
Yanqing County
6914 2426
(8) Completion procedures for industrial and commercial registration
(See: 4. Rules and Regulations concerning Industrial and Commercial
Administration)
(9) Obtaining a Confirmation Letter of Projects Encouraged by the
Nation
In accordance with regulations in the No. 37 Guofa (1997) (issued
by the State Council), any foreign-funded projects or investment-added
projects of foreign-funded companies that can be found in the guide
of the industries in which foreign investment is encouraged, a
Confirmation Letter of Foreign and Local Investment Projects
Encouraged by the Nation, is issued by the Beijing Municipal
Government’s Bureau of Commerce.
(10) Completion procedures for the use of land
(See: P. 77 (7) Policy and regulations on land control)
(11) Completion procedures for the Foreign Exchange Registration
Certificates for Foreign-Funded Enterprises
(See: P. 68 (2) Rules and Regulations on foreign exchange control)
(12) Opening a Bank Account
A foreign-funded enterprise may open a foreign-exchange account with
any bank authorized to engage in foreign-exchange operations. In doing
so, the following documents shall be supplied:
1. The business license of the relevant industry or commercial
administration;
2. Certificate of approval for the enterprise.
A foreign-funded enterprise shall, with the Foreign Exchange
Registration Certificate issued by the relevant foreign exchange
control administration and other relevant documents, open a foreign
exchange account with the account bank at the place of its registration.
A foreign-funded enterprise shall, with the Foreign Exchange
Registration Certificate and the Account Opening Notice issued by the
relevant
foreign-exchange
control
administration,
open
foreign-exchange settlement and foreign-exchange capital-fund
accounts. The foreign-exchange settlement account shall be applicable
to revenues and expenditures under the current account and to such
expenditures under the capital account as approved by the relevant
foreign-exchange control administration.
With a Registration Certificate for External Debt and a Foreign
Exchange (Indirect) Loan Registration Certificate issued by the State
Administration of Foreign Exchange, foreign-funded enterprises can
create bank accounts for the service of converting external debts to
loans and acquiring foreign exchange loans released by domestic
Chinese-funded financial institutions.
A foreign-funded enterprise shall go to an opening bank to open a
special account for repayment of principal and payment of interest,
bringing with the Notice of Opening of Special Account for Repayment
of Principal and Payment of Interest Relating to External Debts or
the Notice of Opening of Special Account for Repayment of Principal
and Payment of Interest Relating to Foreign Exchange (Indirect) Loan.
Whereas an enterprise needs to open a foreign exchange settlement
account and a foreign exchange account with a bank not based in the
place of its registration to facilitate its operations, the said
enterprise may apply to the foreign-exchange control administration
at the place of its registration for permission. The said enterprise
may, with the Account Opening Notice issued by the foreign-exchange
control administration at the place of its registration, get registered
with the foreign-exchange control administration at the place where
the account is to be opened. It shall go through the procedures of
accounting opening with the account bank only after the application
is approved by the foreign-exchange control administration at the place
where the account is to be opened with the official seal of the said
administration affixed to the certificate of approval.
(13) Taxation Registration
A foreign-funded enterprise shall, within 30 days from the day it
obtains a business license, go through the procedures of taxation
registration with the proper taxation authorities, upon production
of the following documents:
1. The business license or other certificates issued by the proper
authorities of industrial and commercial administration;
2. A contract and corporate articles of association and the documents
of approval;
3. The License for Bank Account Opening;
4. Identity cards, passports or other applicable credentials for the
legal representatives or persons in charge;
5. The enterprise’s official and financial seals;
6. Property deeds or house rental agreements;
7. The certificate of organization code issued by the technical
supervision departments;
8. Other relevant certificates and materials that the tax authorities
require.
Beijing Municipal Bureau of State Taxation
Address: 10 Chegongzhuang Dajie, Xicheng District, Beijing 100044
Tel: +86 10 8837 2266
WWW: http://www.bjsat.gov.cn
Beijing Municipal Bureau of Local Taxation
Address: 8 Chegongzhuang Dajie, Xicheng District, Beijing 100044
Tel: +86 10 8837 1741
WWW: http://www.tax861.gov.cn
The District-County Local/State Taxation Bureaus
District/County
Tel +86 10
District/County
Tel +86 10
Dongcheng District Bureau of State Taxation
6525 3531
Dongcheng District Bureau of Local Taxation
8422 3113
Xicheng District Bureau of State Taxation
6602 7666
Xicheng District Bureau of Local Taxation
6227 2820
Chongwen District Bureau of State Taxation
6712 3180
Chongwen District Bureau of Local Taxation
6715 1030
Xuanwu District Bureau of State Taxation
6358 4343
Xuanwu District Bureau of Local Taxation
6352 2723
Chaoyang District Bureau of State Taxation
6466 1133
Chaoyang District Bureau of Local Taxation
6491 9361
Haidian District Bureau of State Taxation
8252 0666
Haidian District Bureau of Local Taxation
6288 6269
Fengtai District Bureau of State Taxation
6381 1915
Fengtai District Bureau of Local Taxation
6382 9223
Shijingshan District Bureau of State Taxation
6886 2873
Shijingshan District Bureau of Local Taxation
6884 0281
Mentougou District Bureau of State Taxation
6986 5090
Mentougou District Bureau of Local Taxation
6984 8224
Tongzhou District Bureau of State Taxation
8152 2307
Tongzhou District Bureau of Local Taxation
8154 5942
Shunyi District Bureau of State Taxation
6946 2203
Shunyi District Bureau of Local Taxation
6944 6601
Huairou District Bureau of State Taxation
6964 1806
Huairou District Bureau of Local Taxation
6964 4731
Daxing District Bureau of State Taxation
6924 2176
Daxing District Bureau of Local Taxation
6925 5004
Changping District Bureau of State Taxation
6974 2048
Changping District Bureau of Local Taxation
6970 5047
Pinggu District Bureau of State Taxation
5132 1009
Pinggu District Bureau of Local Taxation
6996 2869
Fangshan District Bureau of State Taxation
8138 9600
Fangshan District Bureau of Local Taxation
6936 1025
Miyun County Bureau of State Taxation
6904 2376
Miyun County Bureau of Local Taxation
6904 0391
Yanqing County Bureau of State Taxation
6914 2084
Yanqing County Bureau of Local Taxation
6914 5640
Taxation Section directly under the Beijing Municipal Bureau of State Taxation
State Taxation Office of Beijing Economy and Technology Development Area
+86 10 8351 5390
+86 10 6788 5553
(14) Customs Procedures
1.Registration for Applying to Customs
Consigners or consignees of imported or exported goods shall provide
the following documents (both original and copies are needed, and
company stamp is mandatory on copies) when applying for Customs
registration:
(1) Copy of the legal person’s business license counterpart;
(2) Copy of Registration Record for Foreign Trade Operator by the local
companies. The foreign-funded companies shall submit a copy of the
Certificate of Approval for Establishment of Enterprises with
Foreign Investment in the People’s Republic of China when
registering;
(3) Copy of the company’s operating rules;
(4) Copy of the counterpart of the Certificate of Taxation Registration
(both State and local);
(5) Copy of the certification of bank-account opening (Foreign-founded
company shall also submit a copy of report on the verification of
capital;
(6) Copy of the counterpart of the Certificate of Organization Code;
(7) Registration Application of Consigners or consignees of imported
or exported goods, Declarer’s Background Information Enrolment,
Declarer’s Administrative Personnel Enrolment;
(8) Stamp of company’s and legal person’s cachet; stamp of the seal
for customs clearance (on A4 plain paper);
(9) Stamp for customs declarations (Oval shaped, 50 millimetres long,
36 millimetres wide, with corporate name and characters of “Stamp
for customs declarations” inscribed);
(10)Enterprises Directly under the Central Committee registered in
districts or counties of Beijing shall apply at the Customs
Enterprise Administration Section.
2. The following qualifications are needed by companies making customs
declarations:
(1) A detailed list of the qualifications of all legal persons working
for the company in China;
(2) Must have at least 1.5 million yuan registered capital;
(3) Must declare the company’s organization and financial management
system;
(4) Five declarants (with Certification of Declaration and not
registered in other companies) or more are needed;
(5) None of the investors or staff in charge of customs declarations
or declarants should have a record of ever have been involved in
smuggling;
(6) Responsible persons dealing in customs declarations must have more
than five-years of experience in foreign trade or customs
declarations;
(7) No one should have a record of smuggling, illegal behaviour or of
ever having had a Certificate of Customs Declaring Registration
rescinded;
(8)They should have mandatory, paid venues and facilities for operating
a customs declaration business.
(9)Other conditions required by the supervisor and manager of the
customs office
Note: Foreign-funded companies engaged in customs declaration are
to submit a copy of the Certificate of Approval for the Establishment
of Enterprises with Foreign Investment in the People's Republic of
China when registering. The international freight agencies that
forward records of international freight agency according to the
(Tentative) Approaches of International Freight Record (No. 9 Command
issued by the Ministry of Commerce of the PRC in 2005) are to submit
copies of International Freight Agency records when registering with
customs.
3. The following documents are to be supplied when applying for a
Customs Declarer's Certificate of Registration:
a. Application for the Certificate of Registration for the Customs
Declarer:
b. Counterpart of Business License of Legal Person or cope of the
Notice of the Company Name Pre-check;
c. Company rules;
d. Copy of the certification of contribution;
e. Copies of the retaining declarants’ Declaring Qualification
Certificate
f. Feasibility report of the customs declaring services;
g. Work experience of the responsible persons dealing with customs
declaration.
h. Ownership or rental certificate of the business location of the
customs declaration.
i. Other relevant materials concerning the application of
registration. The applicants should apply for and submit documents
for registration applications at the customs offices in
jurisdictions where they are located or to which they are
responsible.
j. Applicant shall apply for and submit all material needed for
registration at local customs.
4. The following materials are to be submitted with the registration
application after the companies engaging in the customs declaration
get administrative approval:
a. Copy of the registration approval documents obtained from the
appropriate higher level customs department;
b. Copy of the counterpart of the Enterprise Legal Person Business
License (Branch offices submit a Business License);
c. Copy of the counterpart of the Taxation Registration Certificate;
d. Copy of a certificate verifying the successful opening of a bank
account;
e. Copy of the counterpart of the Organizational Code Certificate;
f. Declarer’s
Background
Information
Enrolment,
Declarer's
Administrative Personnel Enrolment;
g. Copy of the employment contracts between the enterprises and the
retaining declarants;
h. Other relevant materials concerning the customs declaring
registration;
Foreign-funded companies engaged in customs declaration are to
submit a copy of the Certificate of Approval for the Establishment
of Enterprises with Foreign Investment in the People's Republic of
China when registering;
The international freight agencies that forward records of
international freight agency according to the (Tentative) Approaches
of International Freight Record (No. 9 Command issued by the Ministry
of Commerce of the PRC in 2005) are to submit copies of International
Freight Agency records when registering with customs.
Basic practices and procedures of Beijing Customs
Customs declaration refers to the whole process, starting from
self-disposal of consigner and consignee of import or export goods
or entrusting agents for customs declaration, to goods delivery or
arrival of goods to the supervision regions. In general, the customs
declaration operation of import and export goods includes various
operation links of customs declaration form e-data application,
concentrated examination, acceptance examination/tax and fee
collection, checking and discharging.
1. Paper-based
customs
declaration
documents
preparation
(documentation): the customs applicants fill in the paper-based
“Import (Export) Goods Customs Declaration Form,” according to the
customs regulations, attach complete documents and sign the form;
2. Customs declaration form e-data input/e-declaration: the e-data of
customs declaration form usually can be recorded through the
following two ways:
-Submit to recording companies: the customs applicants can go to
the customs declaration hall to entrust the recording enterprises
to make e-declarations to customs;
-E-port recording: customs applicants can input the data through
their own e-port system of the enterprises to make customs
declarations.
3. Electronic form examination of customs computer system: on receipt
of the customs declaration e-data, through the computer system,
customs can conduct qualification accreditations for applicant
enterprises or brokers, and the computer can process the standard
examination; the examination results are categorized as:
-Application deny: the customs deny the application, and the
customs declaration e-data will be withdrawn, the customs applicants
should modify the e-data according to the requirement of the customs
and re-conduct the e-application;
-Application acceptance: through standard examination, the customs
declaration form data will be examined by manual professional
examination and computerized examination.
4. Submit the documents to the customs on site: after going through
the manual professional and computerized examination, the customs
applicants should print the paper-based customs declaration form
attached with other declaration documents and submit it to customs
on site.
5. Tax and fee management: after the on-site examination of customs,
tax collection certificate will be printed on site by the customs
for those with tax, and the applicants should pay the tax on the
bank counter and cancel after verification with the customs on site;
The applicants choosing online payment can complete the tax payment
through the online payment system of the e-port.
6. Checking and clearance: for those with requirements of customs
examination, the customs can offer clearance after checking; for
those without, the customs can offer clearance after documentation
practice.
7. Issuance of “Import (Export) Customs Declaration Form” certificate
copy: after the imported goods have been cleared, and exported goods
cleared to leave the country, the customs applicants should apply
to the on-site customs, and the customs should consult the electronic
data (for transferred transported goods, after the starting customs
receive the receipt information of outbound goods), and issue the
“Import (Export) Customs Declaration Form” certificate copy
according to procedures.
Tax reduction and exemption documentation guide
Principle regulations:
1. For the following situation, please conduct related tax reduction
and exemption documentation procedures at the tax reduction and
exemption windows: encouraged projects, foreign enterprises [joint
venture, cooperative, wholly owned], technical reconstruction,
infrastructural projects,
loan
projects, scientific
and
educational articles, enterprise (group) technical centres,
scientific and educational books of exclusive units, ocean fishing
industry, and generously donated batch goods of foreign government
and international organizations;
2. According to the “attribution administration principle”, the
Beijing Customs only accept the tax reduction and exemption
procedures of Beijing registered applicant units (final users of
goods), or the procedure regulated by the Customs Headquarters to
be handled at Beijing Customs.
3. Relevant personnel with information of the applicant units (final
users of goods) must present in application for tax reduction and
exemption documentation; sole presence of agent of applicant units
will not be accepted in tax reduction and exemption procedures;
4. Unless otherwise specified by the customs, all the written
documents provided to the customs should be originals or copies
with seal of applicant units;
5. For accepted tax reduction and exemption documentation
applications, in regular situations, the form can be obtained from
the tax reduction and exemption documentation window in five
working days from the second day of the acceptance of the
application.
Required documents for tax reduction and exemption documentation of
foreign-funded enterprises
Foreign-funded enterprises ratified and established on and after
January 1, 1998, should provide the following documents in tax
reduction and exemption documentation procedures at the customs:
1. Fill in the “Export and Import Goods Tax Reduction and Exemption
Application Form,” and stamp the corporate seal of the applicant
units;
2. The original of “Confirmation of Domestic and Foreign Project
Encouraged by the State” approved by the authority;
3. A copy of feasibility research report;
4. A copy of approval reply document of feasibility research report;
5. A copy of contract and constitution (constitution only for wholly
owned foreign enterprises) on establishment of the corporation;
6. Approval reply document of governmental authority to the contract
and constitution on establishment of the corporation (original);
7. Original approval certificate and a copy (the original will be
returned after the documentation procedure);
8. A copy of a valid business license;
9. Original list of imported equipment ratified by the economic and
trade department (can be exempted if the import has not been made);
10. Fill in the “List of Imported Equipment and Technology of Domestic
and Foreign Projects” and stamp corporate seal of the enterprise
(can be exempted if the import has not been made);
11. A copy of specific usage introduction to imported equipment with
corporate seals according to the above-mentioned list, and explain
clearly the functions of imported equipment and usage of this
enterprise;
12. Capital Examination Report (original) of actual inflow of capital
of the enterprise issued by the accounting firms ratified by the
related state authorities and Bank Income Form (copy);
13. “Authorization Certificate” (original) for the personnel of the
units for tax reduction and exemption procedures issued and signed
by the project unit (unit of owner);
Foreign-funded enterprises (the establishment date on the
ratification certificate shall prevail) established on and before
December 31, 1997, shall be exempted from providing items 2Ð4 in the
tax reduction and exemption documentation procedure at the customs.
Required document for capital increase of foreign-funded enterprises
With capital increase approval of related department, Sino-foreign
joint ventures, cooperative joint ventures and wholly foreign-owned
enterprises should apply documentation to the customs. The following
documents should be provided in documentation at the customs:
Capital increase projects approved on and after January 1, 1998:
1. Fill in the “Import and Export Goods Documentation Alteration
Application Form” and stamp the corporate seal;
2. The original of “Confirmation of Domestic and Foreign Project
Encouraged by the State” approved by the authority;
3. A copy of Board of Directors resolution of the enterprise to the
contract and constitution on the foundation of the enterprise (if
a party of the joint venture invest cash or equipment, the sum of
equipment and cash must be clearly stated in the agreement);
4. Original approval reply document of related departments to the
contract and constitution on establishment of the corporation;
5. A copy of approval certificate after capital increase;
6. A copy of valid business license after capital increase;
7. Original Capital Examination Report of actual inflow of capital of
the enterprise (specially referring to the capital increase part
including cash investment) issued by the accounting firms ratified
by the related state authorities and Bank Income Form (copy); if
there are many times of capital examination and capital increase,
capital examination report and bank income form of each time should
also be submitted;
8. “Customs Import and Export Goods Tax Exemption Documentation
Registration Form” ratified by the Customs;
9. “Authorization Certificate” (original) for the personnel of the
units for tax reduction and exemption procedures issued and signed
by the project unit (unit of owner);
10. Other approval-related documents considered necessary by the
customs.
Capital increase projects ratified on and before December 31, 1997,
are exempted from providing the document listed in Item 2.
Required documentation for supplementary equipment of foreign-funded
enterprises.
With approval of related department on supplementary equipment,
foreign-funded enterprises should provide the following documents at
the customs:
1. Original list of supplementary imported equipment ratified by the
related authorities;
2. Fill in the “List of Imported Equipment and Technology of Domestic
and Foreign Projects” and stamp corporate seal of the enterprise;
3. A copy of specific usage introduction to imported equipment with
corporate seals according to the above-mentioned list, and explain
clearly the functions of imported equipment and usage of this
enterprise;
4. A copy of approval certificate;
5. A copy of valid business license;
6. “Customs Import and Export Goods Tax Exemption Documentation
Registration Form” ratified by the Customs;
7. “Authorization Certificate” (original) for the personnel of the
units for tax reduction and exemption procedures issued and signed
by the project unit (unit of owner);
8. Other approval-related documents considered necessary by the
customs.
Tax reduction and exemption approval guide
Principle regulations:
1. Before reading this guide, the related tax reduction and exemption
documentation procedures must have been completed at the tax
reduction and exemption documentation procedure windows (except for
special provisions of imported military materials, ocean fishing,
imported seedlings and offshore and land petroleum)
2. According to the “attribution administration principles”, the
Beijing Customs only accept the tax reduction and exemption
applications of imported goods of related units of Dongcheng
District, Xicheng District, Chongwen District, Xuanwu District and
Chaoyang District.
3. In applying for an “Import and Export Goods Tax Exemption
Certificate,” the relevant personnel with information of the
applicant units (final users of goods) must present an application
for tax reduction and exemption documentation; in principle, sole
presence of agent of applicant units will not be accepted in tax
reduction and exemption procedures;
4. Filling in the “Import and Export Goods Tax Exemption Application
Form” forms with unified printing, according to the requirement of
customs, is required; self-printed copies are invalid.
Provided the import or export goods under the same contract item
are imported at different ports or in batches, an “Import and Export
Goods Tax Exemption Application Form” should be filled in separately
according to the delivery receipt in the actual delivery situation.
The same contracted goods or same parcel of goods with differently
coded licensed items require that an “Import and Export Goods Tax
Exemption Application Form” should be filled in separately,
according to different license codes.
5. The applicant units must label correct Chinese names beside the
foreign names of goods in documents required by the customs, such
as “Commercial Trade Contract”(including contract appendix),
“Commercial Invoice,” “Customs Invoice,” and more.
6. Unless otherwise specified, all the related declaration forms and
certificates provided to the customs should be with corporate seals
on A4 paper.
7. Generally, for tax reduction and exemption applications made at the
acceptance window, the tax reduction and exemption application form
is available at the tax reduction and exemption window in three-five
working days from the second day of acceptance by the “Form Claim
Warrant.”
8. Please refer to the list of documents required in tax reduction and
exemption items for requirements and standards for completing forms,
attach the table with documents, submit to the pre-recording place
with complete set of documents according to the requirements of the
customs, print the “Customs Import and Export Goods Tax Exemption
Certificate Application Form,” and submit to the acceptance window
of Tax Reduction and Exemption Branch.
Service departments of Beijing Customs accepting tax reduction and
exemption applications and approvals
1. Governing districts of Tax Reduction and Exemption Branch of Customs
Tax Division: Dongcheng District, Xicheng District, Chongwen
District, Xuanwu District and Chaoyang District. Tel: +86 10 6539
6440, 6539 6441, address: No. A10, Guanghua Lu, Chaoyang District,
Beijing.
2. Governing district of Zhongguancun Customs Business Branch: Haidian
District, Shijingshan District, Mentougou District, Fangshan
District, Changping District, Fengtai District and Yanqing District.
Tel: +86 10 6262 1177, address: No. 59 Zhichun Lu, Haidian District,
Beijing.
3. Governing districts of Customs Business Branch of Beijing Economic
and Technology Development Zone: Beijing Economic and Technology
Development Zone, Daxing District and Tongzhou District. Tel: +86
10 6788 7353, address: No. 14, Ronghua Zhonglu, Beijing Economic
Development Zone.
4. Governing districts of Business Branch of Pinggu Office: Pinggu
District, Huairou District, Miyun District and Shunyi District. Tel:
+86 10 6997 9966, No. 34, Fuqian Xijie, Pinggu District.
5. Governing districts of Business Branch of Shunyi Office: Beijing
Export Processing District, Beijing Linhe Industrial District and
Beijing Airport Industrial District Section A and B. Tel: +86 10
6539 5388, address: No. A3, Tianzhu Donglu, Section A, Airport
Industrial District, Shunyi District.
Beijing Customs Enterprise Administration Section
Address: A1, Chaoyang Custom Port, Dongsihuan Nanlu, Chaoyang District,
Beijing
Tel: +86 10 6760 6023
(15) Rules and regulations regarding financial administration
4 Rules and Regulations
(1) Business administration
> Set up registration
Documents and certificates required in set up registration of foreign
invested enterprises:
On approval and set up registration of applicant foreign invested
companies, the qualification and identification of the principle body
of the foreign investment submitted for the approval and registration
organs should have been notarized by the notarization organs or
accredited by a Chinese Embassy ( or consulate) in the foreign country
of the applicant. The qualification and identification of Hong Kong,
Macau and Taiwan investors should be provided with the notarization
documents of the local notarization organs.
On approval and setup registration of applicant foreign invested
companies, in addition to the documents stated in Article 20 or 21
of “Company Registration Administration Regulations,” “Legal Document
Delivery Authorization” signed by the foreign investors (principal)
and the document delivery receiver (agent) should also be submitted
to the approval and registration organs.
> Alteration registration
In applying for the alteration of the registration of foreign invested
companies, according to Article 27, 29, 31, 32, 33, 34 and 35 of “Company
Registration Administration Regulations,” correspondent documents
should be provided. Approval documents of the original approval organs
and approval certificates after alteration should also be submitted
in alteration registration of related registration items, due to the
following situations:
a Registered capital;
b Company category;
c Business scope;
d Business term;
e Financing volume and model of shareholders and initiators;
f Acquisition and separation of foreign invested companies;
g Trans-authority address alterations;
h Equity transfer of limited company and shareholding company (except
for those not in relation with business license and those with clear
statement in approval certificate)
In addition to situations stated in the previous provision, the
alternate registration items of foreign invested companies, referring
to the company constitutions, should be subject to alteration
procedures at approval organs in 30 days after the alteration
registration procedure.
> Cancellation registration
In application for cancellation of registration of foreign invested
companies, the following documents should be submitted according to
Article 44 of the “Company Registration Administration Regulations”:
a Cancellation Registration Application signed by the principal of
liquidation team of the company;
b Bankruptcy judgment and dismissal-judgment documents of the
People’s Court, resolutions or decisions made by the company
according to the “Company Law,” and documents at the company shutdown
or cancellation by the administrative organs;
c Documented and confirmed liquidation report ratified by the Board
of Shareholders, Shareholders’ Meeting, shareholders of one-member
company, limited, Board of Directors of foreign invested companies
or the People’s Court and organs ratified by the company;
d “Business License of Corporate Legal Person”;
e Other documents regulated by laws and administrative regulations.
Wholly State-owned enterprises should also prove the decision of
national assets supervision and administration organs on application
of cancellation registration, in which, the important wholly
State-owned enterprises identified by the State Council should also
submit the approval documents of the People’s Government at the same
level.
Companies with branches should also provide the cancellation
registration certificate of the branches on application of
cancellation registration.
In which, cancellation certificate of the taxation organs, customs
clearance certificate issued by the customs or certificate of
non-clearance should also be attached with the liquidation report;
foreign invested companies that have suspended their business
activities in advance should also submit the approval documents of
the approval organs in application of cancellation registration
(except for those dismissed subject to court judgments and bankruptcies,
those shut down by administrative organs, cancellation of business
licenses, set up permits or cancellation of company set up
registration).
(2) Rules and regulations on foreign exchange control
> Issuing a foreign exchange certificate for foreign-funded
enterprises
Within 30 days of the issuance of the business license, a
foreign-funded enterprise should apply to the local foreign exchange
control administration for going through the procedures of foreign
exchange registration. In going through the procedure, the said
enterprise shall fill in the application form for foreign exchange
registration.
>
Applying for a foreign exchange account
After foreign exchange registration, a foreign-funded enterprise
shall open a foreign exchange capital fund account and a foreign
exchange current account. After the company’s basic information is
submitted to the foreign exchange management section, it’ll be able
to apply for a foreign exchange current account.
The income range for a foreign exchange capital fund account for a
foreign-funded enterprise is the capital input of spot exchange by
foreign investors, while the outcome range is the foreign exchange
outcome under the current account and items classified by the local
administration for foreign exchange control as under the capital
account.
The income scope of the frequent item foreign exchange account is
the frequent item foreign exchange; the expenditure scope is the
expenditure of frequent items and foreign-exchange expenditure of
capital item checked and approved by foreign-exchange administrations.
When the report on the verification of capital is ready, the
commissioned certified public accountancy office shall request
confirmation at the local foreign exchange administration and bank
of deposit for the enterprises’ capital fund account.
>
Applying for special account for foreign investors
Foreign investors who have not yet set up foreign-funded companies
in China but who intend to do so, or those who have already engaged
in other activities related with direct investment are allowed to apply
to open four types of special bank accounts: investment, purchase,
expenditure and guarantee. These accounts only accept spot exchange.
Each transfer capital shall be approved by the foreign exchange
management department.
>
Foreign exchange annual check
The foreign exchange board shall annually check the accounts of the
foreign funded companies.
Foreign funded companies shall participate in the foreign exchange
annual checks in accordance with an annual notice concerning checks
of foreign-funded companies.
>
Registration procedures for import-export
A newly established foreign-funded company authorized to engage in
importation and exportation shall apply to the proper authorities for
foreign exchange administration for entry into the Directory of
Companies Engaging in Importation with Payment Made in Foreign
Exchange.
Once an export license is approved, the company shall be registered
on the China Electronic Port database. At the same time the company
shall apply to the Customs Card Centre for a China Electronic Port
IC Card in both the company and company managers’name. If a company’s
name changes or if the company’s business is terminated, the companies
shall record the alteration at the administration of foreign exchange
within one month after carrying out the relevant procedures in the
departments of industry and customs. The records shall be completed
when the first export business needs a bill of cancellation after
verification at the bureau of foreign exchange.
In light of the Experimental Plan of Import Verification Reform in
Beijing, from December 1, 2005, foreign-fund enterprises can directly
apply for the purchasing and paying for foreign exchange to the
authorized banks in Beijing, of course, ones should present the
Certificate of Approval for Establishment of Enterprises with Foreign
Investment In P. R. China, Business License and Certificate of
Organization Code. State Administration of Foreign Exchange will
inform the deadline of experimental plan for another time.
>
Foreign debt registration
Within 15 days after a contract on overseas borrowing is signed, the
aforesaid foreign-invested enterprise shall, with the contract and
other documents, go through the procedures for foreign-debt
registration with the proper authorities of the foreign-exchange
administration. China follows a special administration rule towards
the income and expenditure of foreign-exchange debt. Foreign-debt
special accounts can only be opened in designated banks. On opening
a special loan and a loan-repay account, debtor should get approval
from the foreign-exchange bureau and go through the procedures of
account-opening with the approval for the opening of a capital-related
foreign-exchange business. The special account includes credit and
repayment sub-accounts. The exchange settlement and capital repayment
of the foreign debt, capital plus interest, shall be examined and
approved by the proper authorities of foreign exchange administration
transaction by transaction.
>
Declaration of international revenue and payments
In the case of involvement in international revenue and/or payments,
foreign-funded companies shall, through the appointed banks, make a
declaration to this effect, and submit a statistical report on direct
investment to the proper authorities of foreign exchange
administration semi-annually.
>
Foreign exchange expenditures
Foreign exchange used by foreign-funded trade enterprises or by
foreign-funded non-trade enterprises for business operations may be
paid through their foreign exchanges accounts or designated banks,
for which production of the valid commercial invoices and other
documents shall be required.
Remittance out of China of the after-tax profits and dividends by
the foreign investor(s) of a foreign-funded enterprise may be honoured
at the designated banks, for which production of the relevant documents
shall be required.
Foreign personnel in the foreign-funded enterprises can get their
wages, bonuses and allowances by presenting the proof of rate paying
at authorized banks.
The following items of expenditure in foreign exchange shall be
honoured through bank accounts of the concerned enterprises at
designated banks after verification by the proper authorities of
foreign exchange administration;
a. Whereas covert commission exceeds 2 percent of the contractual value
or 5 percent in case of overt commission, the real value for both
cases being more than US$10,000;
b. Whereas foreign debts are repaid, capital plus interests;
c. Whereas an amount of foreign exchange equivalent to US$10,000 in
value is drawn.
d. With approval from the proper authorities of foreign exchange
administration, foreign-funded enterprises may remit their incomes
obtained through stock rights transfer or upon business termination
provided such incomes are verified by the proper authorities of
foreign exchange administration.
For detailed explanations of foreign exchange management policy, see
the publication, Proclamation from the State Bureau of Foreign Exchange,
published by the State Bureau of Foreign Exchange.
Beijing Municipal Administration of Foreign Exchange
Address: F9, 10, Xijin Tower, No. 3, Shifangyuan, Haidian District,
Beijing 100036
Tel: +86 10 6855 9699
WWW: http//www.safe.gov.cn/110000/index.html
(3) Rules and regulations regarding financial administration
> Financial Registration
A foreign-funded enterprise should, within 30 days after receiving
a business license, go through the procedures of financial registration
at the relevant financial body of the place of its registration
(foreign-owned enterprises shall go to Beijing Municipal Finance
Bureau). When registering, the enterprise needs to fill in the
Financial Registration Card for Foreign-Funded Enterprises, and
submit the following documents (copies acceptable):
a. Foreign Funded Company Approval Certificate issued by the Peoples
Government of Beijing Municipality;
b. Legal
Person
Business
License
(counterpart)
issued
by
Administration of Industry and Commerce;
c. Contract, rules and lists of directorate members of Sino-foreign
enterprises, co-operative companies as well as feedback from the
Bureau of Commerce;
d. Flexibility report of the projects;
e. Capital check report provided by an accounting firm;
f. Statement of a company’s financial management system and accountant
management system;
g. Certification provided by the supervising department of Chinese
investors for the joint venture or co-operative companies;
h. Certificate of right to export for foreign-funded companies or
companies with advanced technologies;
i. Certificate of the state, local taxation registration and the
certificate of institution code issued by the bureau of
technological supervision;
j. License obtained from a depositor’s bank, certificate of foreign
exchange registration and required seals;
k. Decision of the directorate about the alteration of an enterprise;
counterpart of the altered Business License; comment from the Bureau
of the Commerce; (all for enterprises alteration)
l. Report of settlement and bill of settlement provided by the
settlement commission for enterprises (enterprise cancellation);
audit report provided by a State-registered accountant (enterprise
cancellation).
The financial body responsible should give the applicant the original
and a copy of the financial registration card for the foreign-funded
enterprise.
If the enterprise makes changes to the contract or changes the name,
address, legal representative, and/or business scope, it should,
within 30 days after completing the procedures for registration of
alteration, go through the procedure of alteration for financial
registration.
After closure and liquidation and before it applies to cancel
registration at the relevant administration for industry and commerce,
the enterprise should go through the procedures for cancellation of
financial registration.
>
Management, inspection and supervision
Foreign-funded enterprises should supply the following documents to
the proper district or county finance bureaus before April 30 each
year:
1. The enterprise’s annual balance sheet, along with an explanatory
report of its financial status;
2. Audit report by an accounting firm;
3. A duplicated copy of the financial registration certificate
(counterpart).
In addition to the annual financial inspection, the financial
authorities shall select some enterprises for special or full
inspection mid-year, covering such areas as the establishment and
implementation of financial and accounting systems, turnover of
financial revenue, the submission of accounting report forms and
the implementation of the financial legislation.
Beijing Municipal Bureau of Finance
Address: 15, Fucheng Lu, Haidian District, Beijing 100037
Tel: +86 10 8854 9114
WWW: http://www.bjcz.gov.cn
District/County Finance Bureaus
District/County
Tel: +86 10
District/County
Tel: +86 10
District/County
Tel: 86 10
Dongcheng District
6415 3606
Shijingshan District
6887 2800
Pinggu District
6996 5500
Xicheng District
6621 8005
Mentougou District
6984 4680
Fangshan District
6937 7943
Xuanwu District
8315 4208
Fengtai District
6381 2921
Huairou District
6964 3757
Chongwen District
6715 1041
Tongzhou District
8153 7236
Changping District
6974 5080
Chaoyang District
8561 5547
Daxing District
6923 4980
Miyun County
6904 1395
Haidian District
8848 8181
Shunyi District
6946 8461
Yanqing County
6910 2960
BDA +86 10 6788 1207
(4) Rules & regulations on labour and social security
> Labour Recruitment:
Recruitment: When recruiting Chinese employees, foreign-funded
enterprises (the employer) shall go through the normal procedures
of employment used at the job and labour service centres of the
districts or counties where they are based. When recruiting Beijing’s
agricultural residents, employers shall record the recruitment at
the district or county labour and social security section where the
labourers are based, submitting relevant certifications and
materials. In employing personnel from Taiwan, Hong Kong and Macao
for jobs in Beijing, foreign-funded enterprises shall apply to the
Beijing Municipal Bureau of Labour and Social Insurance for work
permits on their behalf. For more information, see the bureau’s Web
site.
Create a contract: The employer should sign a work contract with the
employees.
If hiring the workers provided by another entity, the employer should
sign a contract with the labour provider. At present, 517
labour-providing agencies have been approved in Beijing.
Change a work contract: If an employer and an employee agree, a work
contract can be changed.
Dismissals: A work contract will terminate when the work contracted
expires or the terminating conditions are agreed upon by both parties.
The work contract can be extended upon the agreement of the two parties.
When implementing a work contract, the contract can be terminated
via negotiations between the two parties; either party has the right
to terminate a contract if legally entitled.
Economic indemnity and compensation:
The enterprise, in accordance with the relevant state and municipal
legislation, shall pay an employee an indemnity for cancellation of
a labour contract not arising from error on the part of the employee.
In a given enterprise, the party that acts in violation of the PRC
Labour Law and thus causes economic losses to the other should
compensate the victimized party.
> Labour Protection
The system of work hours and vacation
The employee shall, under normal circumstances, work for not longer
than 8 hours per day, and 40 hours per week.
With the approval by the Municipal Labour and Social Security Bureau,
enterprises may practice the system of integrated work hours or
the system of irregular work hours.
Statutory holidays for the general public are: New Year’s Day, the
Spring Festival (the Chinese Lunar New Year), International Labour
Day and National Day.
Protection of females and minors
The employee shall follow through the regulations of China and
Beijing on the protection of females and minors.
Wages
Foreign-funded enterprises may independently decide their own ways
of distribution and the rates and scales of wages paid to their
employees.
Wages paid to the labourers who engage in full-time work must on no
account be lower than the lowest rates prescribed by the municipal
government, that is, 3.47 yuan per hour and 580 yuan per month.
As regards the labourers who engage in part-time work, the wages paid
to them shall not be less than 7.3 yuan per hour. For work during
the statutory holidays, the rate of payment shall not be lower than
16.5 yuan per hour. In 2005, wages and salaries averaged 32,808 yuan
per worker in Beijing.
For details about the prices of labour in Beijing, please log on to
the official Web site of the Beijing Municipal Bureau of Labour and
Social Insurance
>
Social Security
Item
Paid by the Enterprise
Paid by the Employees
Base Value of the Charge
Pension Fund
20%
8%
Insurant average monthly
wages in the previous year
Unemployment
1.5%
0.5%
Insurant average monthly
wages in the previous year
Insurance
0.3%-1.6%
N/A
Against Injuries
Work wages in the previous year
Basic Medical
9%+1% (Mutual fund of
Insurance
mint fee-for-service)
Childbearing
0.8%
insurance
Insurant average monthly at
2%+3 yuan
Insurant average monthly
wages in the previous year
N/A
Sum based on the number of
qualifying employees
> Welfare
Enterprises shall pay 8 percent to 10 percent of the average monthly
wages of their Chinese employees in the previous year into a housing
fund for the employees, and the employees shall pay the same percentage.
Beijing Municipal Bureau of Labour and Social Insurance
Address: No. 5, Yongnei Xijie, Xuanwu District, Beijing 100050
Tel: +86 10 6316 7906
Service Line: +86 10 12333
WWW: http://www.bjld.gov.cn
(5) Rules on inspection and quarantine control for the importation and
exportation of goods
> Compulsory inspection and quarantine control
Compulsory inspection and quarantine control covers all goods listed
in the Catalogue of Import and Export Goods Subject to Inspection and
Quarantine Control. These include food, animals and plants, animal
and plant products, packaging, cargo holds and containers for dangerous
goods, cargo holds and containers for food and frozen and easily
perishable goods, as well as goods proscribed in other Chinese laws
and international conventions for such procedures.
Details are found in:
1.Commodity Inspection Law, Articles 4, 5, 6, 7, 17 and 18;
2.Implementation Regulations for Animal-plant Quarantine Law, Item
2, Article 5;
3.Food Hygiene Law, Articles 30 and 31;
4.Implementation Specifications for Border Hygiene Quarantine Law,
Article 54.
> Inspection exemption
Goods may be exempted from inspection with the approval of the State
Commodity Inspection Bureau, provided they meet the bureau’s
requirements for exemption of inspection. Inspection exemption can
also be granted to samples, presents and gifts, exhibits not for sale,
and other goods of a non-trade nature. For details, see Item 2, Article
5 of the Commodity Inspection Law.
> Compulsory product certification and quality licensing
For those importing and exporting goods involving safety, sanitation
and environmental protection, manufacturers must receive China
Compulsory Certificates or product certificates (shortened to”CCC:)
and licenses for quality. No import or export of such goods is permitted
without verification and licensing by the commodity inspection
authorities. At present, export licenses for quality are issued for
10 categories of goods, while import licenses for safety are issued
for 22 categories and 158 types of goods.
> Hygienic registration
All plants and storehouses that produce, process or store food for
export in China must pass verification by commodity inspection
authorities and receive hygienic registration certificates before
they start to produce, process, and store food for export.
> Inspection and appraisal for goods imported by foreign-funded
enterprises
Goods imported by foreign-funded enterprises, except for imports
subject to mandatory inspection and imports involving hygiene, safety
and environmental protection issues, shall be subject to inspection
by the enterprises themselves. The importation of equipment and raw
materials paid for by foreign investors (including investors from Hong
Kong, Macao and Taiwan) as part of their investment shall be reported
and inspected by the commodity inspection or quarantine authorities.
(Assessment of the value of these shall not be mandatory for enterprises
under sole foreign proprietorship). Equipment and raw materials
purchased from overseas through entrustment by overseas partners shall
be reported and inspected by the commodity inspection authorities
(excluding the compulsory value appraisal for the foreign-owned
enterprises). Verification and value appraisal certificates serve as
the valid documents in the examination of the capital invested by joint
ventures or cooperative enterprises.
> Priority policy
Foreign-funded enterprises shall enjoy priority in going through
procedures that call for urgent handling.
Beijing Municipal Bureau of Commodity Inspection and Quarantine
Address: No. 6, Tianshuiyuan Jie, Chaoyang District, Beijing 100026
Tel: +86 10 5861 9900
WWW: http://www.bjciq.gov.cn
Branches of Bureau of Commodity Inspection and Quarantine
Branch
Tel +86 10
Capital International Airport Bureau of Commodity Inspection and Quarantine
6459 6087
Fengtai District Bureau of Commodity Inspection and Quarantine
5864 8205
BDA Bureau of Commodity Inspection and Quarantine
5864 8408
Shunyi District Bureau of Commodity Inspection and Quarantine
5864 8528
Tongzhou District Bureau of Commodity Inspection and Quarantine
6156 6195
Chaoyang Port Office
5864 8361
Beijing West Railway Station office
5193 3238
Beijing Entry-Exit Inspection and Quarantine
China International Exhibition Centre Office
8640 0678
(6) Regulations on exit-entry
> Policies and regulations on exit-entry
a. A foreigner should apply for a visa from a Chinese representative
office, consulate or any other overseas organ authorized by the
Ministry of Foreign Affairs before entering China.
b. A foreigner should have his/her passport, visa, residence permit
or other valid credentials checked when he/she exits the Chinese
border.
c. With the approval of competent governmental departments, a foreigner
who needs to stay in China for quite a long period because of
investment in China or cooperation with Chinese entities on economic,
scientific, technological and cultural matters can apply for
long-term or permanent residence permit.
d. Favourable terms will be granted to those “returned Chinese”
(Chinese having obtained degrees abroad and currently working in
China as foreign nationals) who have high-tech or top managerial
backgrounds. Those among them who need to exit and enter China for
temporary purposes can apply for F-type visas which can be repeatedly
used and have a general validity term of one year, and five years
at the most. Those who need to stay in China for a long time can
apply for a residence permit effective for 1-5 years.
> Visa: Z-Type
a. Z-type visas are granted to foreigners with permission to work in
China or to members of their families who accompany them.
b. A certificate for invitation or employment from a Chinese employer
or a letter or fax of visa notification sent by the authorized unit
is needed when applying for a Z-type visa.
c. When foreigners with permission to work in China and their
accompanying family members who are older than 18 years old apply
for a residence permit for the first time, they should submit a health
certification issued by the medical and health department designated
by the government of his own country upon entry into China. The health
certificate will be valid for six months starting on the day of
issuance.
d. Within 30 days of their arrival in China, foreigners with Z-type
visas should apply for a residence permit or temporary residence
permit at their local public security office. The period of validity
of the residence permit shall be the period for which the holder
is allowed to stay in China.
> Obtaining a Visa at Port of Entry
Chinese law stipulates that foreigners can apply for a visa at an
authorized port of entry for emergencies as listed below if they are
too late to apply for a visa at a Chinese embassy, consulate or other
authorized office abroad. When applying, they need to submit a letter
or telegraph from authorized Chinese units and a passport of a country
with diplomatic or official trade relations with China.
Matters eligible for applications for visas at ports of entry include:
a. At the invitation at the last moment by the Chinese side to attend
a trade fair;
b. At the invitation to take part in bidding or the formal signing of
a trade agreement;
c. To supervise the examination of exports and imports or to check a
contract by agreement;
d. By invitation to install equipment or to make rush-repairs;
e. At the demand of the Chinese side to settle claims;
f. At the invitation of the Chinese side to give scientific and
technological advice;
g. Unexpected change or addition of members of the visitor group agreed
previously by the Chinese side;
h. To see a seriously ill patient or to handle a funeral;
i. People with transit visas unable to leave the country within 24 hours
for certain reasons or needing to change to other means of
transportation;
j. On invitations for other reasons but without enough time to apply
for a visa in embassies and with letter of agreement to apply for
a visa at ports from designated competent bodies;
k. Approved tourist group from Hong Kong or Macao or a Chinese side
international travel agent.
The authorized ports with visa-issuing rights are as follows: Beijing,
Shanghai (at Pudong Airport and Hongqiao Airport), Tianjin, Chongqing,
Dalian, Fuzhou, Xiamen, Xi’an, Guilin, Hangzhou, Kunming, Guangzhou
(at Baiyun Airport), Shenzhen (at Luohu and Shekou), Zhuhai (at
Gongbei), Haikou, Sanya, Jinan, Qingdao, Weihai, Yantai, Chengdu and
Nanjing.
When applying for a visa at a port, the following documents are needed:
a. Valid personal passport
b. Completed visa application form, and
c. Relevant certificates stating reasons for applying for an entry
visa.
> Priority Policy
1. Regulations on providing border entry and residential facility to
high-grade foreign talent and investors
a. Beneficiaries to enjoy border entry and residential facilities
include:
(1)
Senior consultants invited by provincial (ministerial)
authorities, and high-tech and high-level managers in tasks to
execute
the
State/province-class
scientific
programmes,
significant project agreements and Sino-foreign talents exchange
programmes.
(2) Foreigners who have made renowned achievements or come to execute
intergovernmental free aid agreements.
(3) Foreigners recruited by State/provincial (ministerial) scientific
research institutes or key collegiate schools to lead in domestic
academic activities; foreign scholars holding titles above the level
deputy-professor or deputy researchers or enjoying the same
treatment.
(4) Foreigners holding the post above the level of vice-general manager
in enterprises or government departments or those high-level
managers and technical experts given the same treatment.
(5) Foreign investors who have invested more than US$1 million in rural
counties in West and Central China or who have invested more than
US$3 million in other parts of China; managers or technical experts
from foreign enterprises meeting the same investing standards.
(6) Foreign-citizenship Chinese who have won important international
technological prizes or who are making outstanding achievements in
other fields.
(7) Spouses of the above-mentioned foreigners and their children below
18 years old.
b. Convenience regarding border entry and residence
(1) Foreigners needing to work and live in China for a long term can
apply for a residence permit with two-five years effective within
30 days and the corresponding Z visa (working visa) allowing
unlimited returns.
(2) Foreigners holding L visas (travel visas) or F visas can apply for
a residence permit with two-five years in accordance with their
needs.
c Materials in residence and stay permit transaction
(1) Valid passport and visa;
(2) Accommodation registration proof in Beijing;
(3) Correctly fill in the “Application Form of Visa, Residence and
Stay Permit of Foreigners” with corporate seals, and recent
passport-size 2 inch photos (full face without hat);
(4) Letters of Class I Authority to Division of Aliens and Exit-Entry
Administration of the Beijing Municipal Public Security Bureau
(5) “Foreign Expert Certificate” issued by the State Foreign Expert
Bureau or its authorized units or the Foreign Affairs Office of
Beijing, and the “Working and Residence Certificate of Returned
Personnel from Foreign Countries,” and copies are required;
(6) In application of residence permit of investors, approval of
foreign invested enterprises, annually examined copy of business
license, and “Employment Certificate of Foreigners” issued by the
Beijing Labour and Social Security Bureau;
(7) Foreigners above the age of 18 should provide the original “Health
Certificate” issued by the entry-exit inspection and quarantine
department on the first-time application for residence and stay
permit;
(8) Accompanying family members should provide the passport and
residence permit of the personnel who is engaged or taking the post,
as well as the official letter of the employer organization;
(9) Marriage proof between spouses.
(10)
Kindred relation proof between children and the parents.
Note: Copies of all the above-mentioned documents are required.
2 Regulations for residents on the Chinese mainland applying for
business permit documentation registration for travelling to Hong Kong
and Macau
a. Acceptance scope:
(1) Enterprises or their branches with registration at State industrial
and commercial administration departments and independent legal
person qualification;
(2) Organizations or representative offices of foreign enterprises
in mainland that have been registered at the national taxation
department and have been in production and operation;
(3) Self-employed operators.
b. Issuance categories:
(1) Once in three months visa, many times in three months, and many
times in one year visas can be issued to corporate employees who
have obtained registration documentation, and their stay in Hong
Kong and Macau should not exceed seven days each time.
(2) A once in three months visa can be issued to corporate employees
and self-employed operators without registration documentation,
and their stay in Hong Kong and Macau should not exceed seven days
c. Required documents:
Take the ID card, Residence Booklet and a copy, submit the completely
filled Application of Permit to Inland China Residents for Residents
for Travelling to Hong Kong and Macao,” along with an attached, recent
passport-size, two-inch photo (full face without hat, with light blue
or white background), and submit the following materials:
(1) Corporate employees with registration documentation should submit
the original, copy and dispatch letter of “Business Visa
Documentation Annual Registration Booklet for Travelling to Hong
Kong and Macau.”
(2) Corporate employees without registration documentation must
submit:
·A copy of business license of the enterprises (business unit) or
originals and copies of foreign enterprise registration certificate
or other related restriction certificate and taxation registration;
·Dispatch letter issued by the legal person representative of the
enterprise (business unit), principals or human resource department
with authorization to dispatch the applicant to do business
activities in Hong Kong and Macau;
·Original and copy of Social Security Card;
·Without changes of the dispatching companies (business units), the
permanent resident in Beijing should submit a completed Application
of Permit to Inland China Residents for Residents for Travelling to
Hong Kong and Macao, with a recent passport-size, two-inch photo
attached (full face without hat, with light blue or white background),
a “Permit for Residents for Travelling to Hong Kong and Macao” and
a dispatch letter, without submitting other materials.
In addition to the above-mentioned documents, personnel from
provinces and cities outside Beijing should also submit:
·Originals and copies of “Temporary Residence Cards” or “Beijing
Working and Residence Cards.”
Notes: Applications for business in Hong Kong and Macau, certificates
will be available after notification to personnel from provinces and
cities outside Beijing.
The Exit-Entry Administrative Division of the Beijing Municipal
Bureau of Public Security
Address: 2, Andingmen Dongdajie, Dongcheng District, Beijing 100007
Tel: +86 10 8402 0101
WWW: http://www.bjgaj.gov.cn
(7) Policy and regulations on land control
> The management of expropriation of collectively owned land
Overseas investors wishing to develop construction projects on
collectively owned land are required to gain prior approval from
investment planning authorities, foreign trade and economic
cooperation authorities and urban planning management authorities.
With the documentation of approval by these authorities, the investors
may proceed to contact the Beijing Municipal Land Resources and Housing
Property Bureau to go through the formalities of expropriating
collectively owned land for construction in line with the law. If the
land to be developed was for agricultural use, the investors should
also apply for a permit for agricultural land use transfer.
>
Paid use of State-owned land
This country practices a system of allowing paid use of State-owned
lands limited in area. Such a system applies to foreigners intending
to invest and use land in Beijing.
a. Land for business use shall be obtained on the local land trading
market through public bidding, auctioning or listed transactions.
Transfer of State-owned land refers to deeds that the State transfers
the right to use certain land for a certain period of time to a land
user, and in exchange, the land user pays a certain amount of money
to the State. The State-owned land use rights transfer referring to
the land-use and should be fixed in form of contract signed between
the land user and the governmental department in charge of land
management. The land user is thus entitled to transfer, lease and
mortgage the land according to the contract and related laws. The terms
of the land-use right ranges from 40-70 years, depending on what the
land is used for.
Land use rights are granted to the successful bidder at auction as
arranged by either municipal or country land administrations.
Land-use rights transfer through auction refers to deeds that a land
transferor makes an auction announcement and finalizes a land user
contract according to the result of the auction held at the time and
the place stipulated in the auction announcement.
Land-use rights transfer through auction refers to deeds that a land
transferor makes an auction announcement and finalizes a land user
contract according to the result of the auction held at the time and
the place stipulated in the auction announcement.
Transfer of land-use right through listed transaction entails that
the land transferor makes a public notice on the intended transaction,
publicizes the trade terms at the designated site, updates the price
of the land according to the price offers of the bidders and select
a land user according to the price offered when the deadline of the
listing arrives.
(1) These who transfer land shall, on the day prescribed in the public
notice as the beginning of the listing, publicize at a land trading
agency, the location, area, function, timeframe, requirements of
planning governmental bodies, benchmark price and the price-hiking
scope and so on of the land to be transferred.
(2) Qualified bidders fill in forms and make price offers.
(3) The land transferor verifies the price offers and updates the price
of the land according to the result.
(4) The land transferor continues to accept new price offers.
(5) The land transferor selects a winner upon the expiration of the
bidding.
The listing shall continue for no shorter than ten working days,
during which period the prices
may be adjusted according to price
offers.
The following conditions offer indexes on whether a deal can be reached
when the listed trade expires:
(1) In a case where there is only one person making a price offer, if
the price he/she offers is higher than the benchmark price and
he/she acts in accordance with auction rules, the person should
be granted rights as the land user.
(2) In a case where there are two or more persons making price offers,
the one who offers the highest price will be the land user. If the
price offers are the same, the first to have tendered the price
offer from the beginning will be the winner (such situation is
inapplicable to those price offers lower than the benchmark price).
(3) In case no one offers any price, or if a tender’ s price is lower
than the benchmark price or the tender is not qualified, the deal
cannot be closed.
In a case where there are still one or more persons wanting to make
price offers when the listed trade expires, the land transferor should
conduct an on-the-spot bidding session, and the one who offers the
highest price will be the winner.
b. Apart from the above-mentioned channels, a foreign investor may
obtain land-use rights by submitting a certain land-use fee on a
yearly basis in accordance with related laws. However, the land-use
right thus obtained can only be used by the landholder, and its
transfer, leasing and mortgaging shall be forbidden. The term of
the land-use right usually is the same as for Sino-foreign
enterprises. Land-use fees refer to the money a foreign-funded
enterprise pays to a local government within the term of its
operation, excluding those fees levied for the purpose of
expropriation, relocation and infrastructure construction, and
more. Land-use fees vary depending on the location of the land and
the purpose of its use, ranging from 1 yuan to 150 yuan/sq.m. per
annum. But this situation is only applicable to the land provided
by the Chinese party to a Sino-foreign cooperative and productive
enterprise, land used for farming and livestock breeding and for
land approved by the government.
Beijing Municipal Bureau of Real Estate and Land Management
Address: 2 Hepingli Beijie, Dongcheng District, Beijing 100013
Tel: +86 10 6440 9669
WWW: http://www.bjgtfgj.gov.cn
(8) Policy and Regulations on Housing Property
> Pre-sales and sales of housing property
After an application is approved and a “Commercial Housing Pre-Sale
License(s)” is issued, the relevant overseas investor may pre-sell,
sell or rent its real estate to Chinese or foreign enterprises, economic
organizations of other types or individuals. However, if the buyer
or renter is an expatriate, the investor should act according to related
regulations of the municipality.
Before striking a deal, the seller and the buyer should sign a
“Contract for Commercial Housing Deal” printed by the Beijing Real
Estate and Land Management Bureau. As regards pre-sales, the seller
should register at the Beijing Real Estate and Land Management Bureau
for related formalities within 30 days from the day the contract is
signed. The buyer is exempted from the registration. But both parties
should take related documents to the Beijing Real Estate and Land
Management Bureau to transfer the ownership of the property within
30 days from the day the seller transfers the property to the buyer.
For the transfer of commercial housing pre-purchased during the
validity term of the relevant “Contract for Pre-Sale of Commercial
Housing” the transferor and the transferee should endorse the pre-sale
contract. After the endorsement, they should take with them relevant
documents to the Beijing Real Estate and Land Management Bureau to
go through the formalities of registering the transfer of the pre-sale
contract in a timely manner.
In the pre-sale and sale of real estate, the parties concerned are
liable to pay the contractual tax, transaction charges, the stamp tax
and other relevant charges.
>
Registration of the ownership of real estate property rights
The State applies a system to register the land-use rights and the
ownership of real estate, and to issue relevant certificates to parties
concerned. Where an overseas-funded enterprise has acquired the
land-use rights through transfer or other legal means, where it has
legally built houses on the land it has expropriated in line with the
law, and where it has purchased real estate, the party or parties
concerned should apply to the Beijing Real Estate and Land Management
Bureau or a relevant district- or county-level real estate and land
management authority for registering the ownership of the real estate
concerned, and contact it to obtain the certificate of the right to
use State-owned land and the certificate of ownership of the real estate
concerned.
Where the ownership of real estate of an overseas-funded enterprise
or an overseas investor has been transferred or has changed, the party
or parties concerned should apply to the Beijing Real Estate and Land
Management Bureau for registering the transfer or change of ownership
in a timely manner. After the transfer or change is affirmed and the
application is approved, the original certificate of ownership of the
real estate concerned shall be replaced or modified.
>
Management of real estate mortgages
Overseas investors may use their legal real estate for financing or
providing a guarantee of the creditor’s rights for other parties by
mortgaging the real estate.
The mortgaging of real estate refers to the act of the mortgagor (the
debtor or a third party) to use its legal real estate for providing
the mortgagee (the creditor) with the guarantee to pay debts in the
form of possession that has not been transferred. When the debtor has
failed to pay debts, the creditor has the right to become the first
party to be compensated with 50 percent of the price of mortgage or
the income from the auction or sale of the defaulted mortgaged in line
with the law. However, as the land-use rights, which determine the
right to mortgage real estate, are acquired in the form of allocation,
after the relevant real estate is auctioned, the mortgagee will become
the first party to be compensated only with the balance of income from
the auction after it is used to pay the price of the compensation for
transferring the land-use rights.
For the mortgage of a building on State-owned land expropriated in
line with the law, the right to use the piece of State-owned land which
the building occupies will be mortgaged at the same time. For the
mortgage of the right to use State-owned land acquired in the form
of transfer, the building(s) on the piece of State-owned land should
also be mortgaged at the same time. However, buildings newly set up
after the mortgage shall be excluded. The right to use land of township
or village-run enterprises may not be mortgaged separately. For the
mortgage of buildings of township or village-run enterprises including
workshops, the right to use the piece of land occupied by the relevant
buildings shall be mortgaged at the same time.
In mortgaging real estate, the party concerned should take with it
the certificate of the land-use rights and the certificate of ownership
of the real estate and go to the competent authorities to go through
the formalities required. The mortgagor and the mortgagee should also
sign a mortgage contract, and should proceed to contact the Beijing
Real Estate and Land Management Bureau to register the object of
mortgage. A mortgage contract shall take effect as of the date of
registering the mortgage.
>
Property leasing
To protect the legitimate rights and interests of both the lesser
and the lessee, the Beijing Municipal Real Estate and Land Management
Bureau have taken steps to strengthen management of real estate leasing.
An overseas investor wishing to operate its real estate in the form
of lease should contact the bureau for a license for the purpose. After
signing a leasing contract with the lessee, the lessor should contact
the bureau to register the lease in a timely manner. An overseas
investor wishing to lease real estate is required to gain prior approval
from the municipal public security authorities before signing a lease
contract. It is also required to contact the Beijing Real Estate and
Land Management Bureau to register the lease for the record.
Overseas investors wishing to invest in Beijing may acquire the right
to use State-owned land in urban and township areas of Beijing by paying
compensation and through the establishment of joint ventures, bidding,
tender-offering or signing agreements. The duration of the land-use
rights is 40-70 years, in accordance with the purposes of the use of
land.
Overseas-funded enterprises may sell or lease the real estate they
legally own to other enterprises, economic organizations of other types
or individuals within and outside China.
Overseas investors may mortgage the buildings under their ownership
and the land-use rights to banks or other financial institutions
outside China.
Beijing Municipal Commission of Construction
Address: 5 Guangliang Lu, Xuanwu District, Beijing 100055
Tel: +86 10 6395 1166
WWW: http://www.bjjs.gov.cn
(9) Taxes and fees foreign-funded enterprises are obliged to pay
> Value Added tax:
The value-added tax has three different rates:
a. 17 percent for marketing or importing of goods and for processing,
repairs, assembling and other services;
b. 13 percent for marketing or importing of grain, cooking oil, coal
gas, natural gas, coal products for domestic use, books, newspapers
and periodicals;
c. Zero percent for the export of goods except those otherwise
stipulated by the State Council.
The rate shall be 6 percent for companies and individuals verified
as petty taxpayers-those producing goods or offering taxable services
with annual sales not exceeding 1 million yuan and those engaging in
whole “or retail” sales of goods with annual sales not exceeding 1.8
million yuan.
The tax shall be exempted for export of goods by foreign-funded
enterprises except export of crude oil, finished oil products and goods
otherwise stipulated by the State Council.
>
Consumption tax
The consumption tax covers 11 taxable items with 25 tax rates, ranging
from 3 percent to 45 percent. It is collected in the course of production
by taking the prices as a base with the exception of rice wine, beer,
gasoline and diesel on which consumption tax is collected by taking
the output as the basis. Exemption of consumption tax shall be allowed
to taxable consumer goods for export, except those otherwise stipulated
by the State Council.
>
Business tax
A sales tax is a tariff levied on profit-generating industries and
activities. The sales taxpayers in China include all entities,
proprietors and individuals that provide labour, transfer intangible
assets or sell real estate.
The sectors exempt from sales tax include the nursing service provided
by baby nurseries, kindergartens, old people homes and the charity
organizations for disabled people, matchmaking service, funeral
services, the service provided by the handicapped, the revenue from
non-profit medical services earned at the State-set prices,
educational activities, part-time work provided by schools, training
for mechanical ploughing, irrigation, prevention against pests, plant
protection and insurance for farming and herding, reproduction and
pest-prevention for poultry, domestic animals and aquatic animals,
ticket sales for memorials, museums, cultural centres, art galleries,
exhibition halls, painting and calligraphy galleries, libraries, and
cultural relics protection units, ticket sales for religious
activities, revenue from technical transfers, development and related
consultations, premium from ordinary life insurance, endowment
insurance and health care insurance, administrative charges within
governmental budget and funds.
>
Corporate income tax
The rate shall be 24 percent for foreign-funded production
enterprises in the Beijing area, provided these have an operation
period of ten or more years. Tax exemption shall be allowed to such
enterprises in the first two profit-making years, and a 50-percent
reduction shall be allowed in the following three years.
Foreign-funded enterprises investing in agriculture, forestry and
animal husbandry shall, with approval of the State Administration of
Taxation, pay corporate income tax at reduced rates of 15 percentÑ30
percent for ten years after the two-year tax holiday and the three-year
50-percent tax reduction expires, beginning the first profit-making
year.
Foreign-funded production enterprises in the Beijing Economic and
Technological Development Area shall pay corporate income taxes at
a reduced rate of 15 percent and shall, beginning the first
profit-making year, enjoy a two-year tax holiday and a three-year
50-percent tax reduction.
Enterprises in Zhongguancun Science Park that are verified as users
of high-technology shall pay corporate income tax at a reduced rate
of 15 percent, and shall enjoy a three-year tax holiday and a three-year
50-percent tax reduction, beginning the first profit-making year.
Enterprises verified as technologically advanced shall, after the
periods of tax exemption and tax reduction expiry, enjoy a 50-percent
tax reduction for three more years. But the tax rate shall be 10 percent
even if it is lower than 10 percent of the gross even after the tax
reduction.
Export-oriented
enterprises
shall,
after
the
State-provided periods of tax exemption and reduction expiry, pay
corporate income tax at half of the currently applicable rate provided
exports account for no less than 70 percent (40 percent for new-tech
enterprises) of the output value generated for the year by the said
enterprise.
A 15 percent reduction in the corporate income tax shall, with
approval of the State Administration of Taxation, be allowed to
technologyand
knowledge-intensive
projects
undertaken
by
foreign-funded production enterprises using foreign capital of no less
than US$ 30 million. The same policy shall apply to energy,
communication and port construction projects.
The foreign investor in a foreign-funded enterprise may have a
40-percent reimbursement of the tax money already paid for reinvestment
provided the said investor uses the profits from the said enterprises
to directly reinvest in capital projects in China for operation over
a period not shorter than five years. The said investor may have all
such tax money reimbursed for using the profits to reinvest in
technologically advanced or export-oriented enterprises in China for
operation over a period not shorter than five years.
Enterprises using new technologies and/or technologically advanced
products or export-oriented enterprises, or those enterprises setting
up regional headquarters, shall be exempted from local income tax.
Foreign-funded production enterprises with an operational period not
shorter than ten years shall be entitled to exemption of local income
tax, beginning the first profit-making year, followed by a five-year
50-percent exemption of the tax.
>
Personal income tax
In China, a categorized tax system is adopted for personal income
tax collection, and the “Personal Income Tax Law of the People’s
Republic of China” lists the range of wages and commissions: personal
income taxes should be collected to income of private industrial and
commercial merchants in production and operation; income of
contracting and renting business to enterprises; income of labour
payments; authors’remuneration; the income of concession rights
charge; income of interest, dividend and bonus; property leasing;
property transfer; incidental income; and 11 other items identified
by the financial department of the State Council submitted to tax
collection. In which:
1. Wage and commissions are applicable to 9-level exceeding volume
incremental tax rate.
Tax Rate Form (applicable to wage and commissions)
Level
Monthly Payable Income
Tax Rate (%)
1
No more than 500 yuan
5
2
The part exceeding 500 yuan to 2,000 yuan
10
3
The part exceeding 2,000 yuan to 5,000 yuan
15
4
The part exceeding 5,000 yuan to 20,000 yuan
20
5
The part exceeding 20,000 yuan to 40,000 yuan
25
6
The part exceeding 40,000 yuan to 60,000 yuan
30
7
The part exceeding 60,000 yuan to 80,000 yuan
35
8
The part exceeding 80,000 yuan to 100,000 yuan
40
9
The part exceeding 100,000 yuan
45
For personal wages and commissions of foreigners, the balance after
deducting 4,800 yuan (deducting 1,600 yuan of reduction cost and 3,200
yuan of additional reduction cost) from the monthly income is the
taxable income.
2. According to the provisions of the taxation law, for labour payments,
concession rights fees and property leasing income, a certain
standard cost should be deducted, and the balance is the taxable
income, applicable to tax rate of 20 percent. The specific measure
is: 800 yuan of cost will be deducted for the income no more than
4,000 yuan; 20 percent of cost will be deducted for the income
exceeding 4,000 yuan, and the balance will be taxable income.
In which, for once-off labour-payment income, if the balance after
deducting the cost exceeds 20,000 yuan to 50,000 yuan, it is applicable
to the tax rate of 30 percent; and the part exceeding 50,000 yuan will
be applicable to the tax rate of 40 percent.
3.Property transfer (deducting original value of property), interest,
dividends and bonus income, and incidental income are applicable to
the tax rate of 20 percent.
Individuals who have no permanent residence in China, however, live
in China successively or adding up to no more than 90 days during one
taxable year, or live in China successively or adding up to 183 days
during the tax agreement period, the personal income tax will only
be collected from the wage and commission paid by enterprises within
China during their stay in China, or by individual employers, or by
institutions within China; the part paid by foreign employers or not
paid by the institutions of the employers within China will be exempted
from personal income tax.
Taxpayers who have no permanent residence in China, living in China
successively or adding up to no more than 90 days during one taxable
year, or live in China successively or adding up to 183 days but no
more than a year during the tax agreement period, all the wage and
commission paid by enterprises within China, or by individual employers,
or by foreign enterprises or individual employers during their work
in China should apply and report for personal income tax; their wage
and commission gained at work outside China will be exempted from
personal income tax, except the those taking directors or senior
management positions in enterprises in China.
Individuals who have no permanent residence in China, however, live
in China more than one year but no more than five years, all the wage
and commission paid by enterprises within China, or by individual
employers, or by foreign enterprises or individual employers during
their work in China should apply and report for personal income tax;
personal income tax will only be collected from the income paid or
shouldered by companies and enterprises as well as other economic
organizations or individuals within China from the income gained from
outside of China. Individuals who live in China for more than five
years, should pay the personal income tax since the sixth year on all
of their income gained from both inside and outside China.
>
Land added-value tax
Four-grade progressive rates shall apply to collection of land value
added land tax:
A 30 percent value added land tax shall be collected on the portion
of the added value that does not exceed 50 percent of the total deduction.
The rate shall be 40 percent for the portion of the added value that
exceeds 50 percent of the total deduction but does not exceed 100
percent of the total deduction.
The rate shall be 50 percent for the portion of the added value that
exceeds the total deduction by 100 percent but does not exceed the
total deduction by 200 percent.
The rate shall be 60 percent for the portion of the added value that
exceeds the total deduction by 200 percent.
The sum of added value refers to the surplus resulting from deductions
made in accordance with the prescribed rules in income obtained by
the taxpayer through transfer of real estate property.
Items subject to deduction: Fees for land use rights; costs of land
development; costs of construction for new buildings and support
facilities or assessed prices for old buildings; taxes paid for
transfers of property; and items prescribed by the Ministry of Finance
as eligible for deductions.
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Urban real-estate tax
Payers of the urban real-estate tax shall be foreign-funded
enterprises, foreign-owned enterprises, individual foreign nationals,
overseas Chinese and compatriots from Hong Kong, Macao and Taiwan who
own property rights in China. Payers of the urban real-estate tax shall
be foreign-funded enterprises, foreign-owned enterprises, individual
foreign nationals, overseas Chinese and compatriots from Hong Kong,
Macao and Taiwan who own property rights in China. The annual urban
real-estate tax shall account for 1.2 percent of the original value
of property owned by a foreign-funded enterprise, a foreign-owned
enterprise, an overseas Chinese, or a compatriot from Hong Kong, Macao
or Taiwan. It shall be collected in two instalments, both within 15
days ahead of April and October, with a 30 percent deduction made in
the actual payment of the tax.
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Stamp duty
The stamp duty is a tariff imposed on documents created or received
in economic activities. The stamp duty payers in China include all
the entities, proprietors and individuals that create or receive
business documents.
Stamp duties are broken down into 14 price brackets ranging from the
lowest 0.00003 yuan for purchase/sale contract to the highest 0.002
yuan for stock trading. Account books and credentials are levied at
5 yuan each.
Sectors exempt from stamp duty include copies of credentials
attesting to the payment of stamp duty, evidence papers of property
contributed to government, charity organizations and schools,
contracts for interest-free loans and discount-interest loans,
contracts to provide favourable loans by foreign governments and
international financial organizations to the Chinese Government and
State finance departments, insurance contracts covering the products
of farming and forestry, herding and raising of domestic animals, and
the credentials set forth between press publishers, publishers and
subscribers and between individuals.
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Tax on licenses for use of vehicles and vessels
Users of vehicles and vessels shall be payers of tax.
Rates of the tax: The tax shall be collected according to the load
capacity in case of cargo-carrying automobiles and vessels, and
according to the type of passenger vehicles and number of seats they
have.
Cargo-carrying automobiles: 48 yuan per year per ton of carrying
capacity
Passenger automobiles: 120 yuanÐ160 yuan per year, according to the
varying numbers of seats
Motorcycles: 20 yuanÐ48 yuan per year
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Deed tax
A deed tax is a tariff levied on the recipient of transferred land
and housing. The deed taxpayers in China include all the entities,
proprietors and individuals that receive the transferred land and
houses.
The deed tax is assessed according to the following three standards:
the transaction prices of State land-use rights and State-owned housing,
the donation price of a land-use right and house ownership set by the
tariff administration according to the transfer of State land or
housing, and the price difference in the transfer of land-use rights
and house ownership. The deed tax rate in Beijing is 3 percent.
Sectors exempt from the deed tax include: land and houses received
by governmental organizations, government-sponsored institutions,
social associates and military organizations to be reused in office
work, education, medical care, scientific research and military
settings, urban workers’first house bought according to the government
regulations, the barren hills, trenches, hummocks and shoals
transferred to be reused in farming, forestry, herding and fishery,
and privileged diplomatic officials. People who have lost homes because
of force majeure can be relieved of a part of the deed tax or excused
from deed taxes on the purchase of a second home.
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Resources tax
The resources tax is a tariff imposed on certain natural resources
to protect resources, promote rational development and to adjust uneven
incomes arising from different resources. Resources taxpayers in China
include all the entities, proprietors and individuals that explore
for minerals or that produce salt.
The produced crude used for heating and well repairing can be excused
from resources tax. Taxpayers that incur grave damages caused by
accidents or natural disasters can be relieved or exempted from
taxation. The iron ore produced by metallurgical independent mines
and allied enterprises mines, and non-ferrous metal ore can have their
resources tax rate reduced.
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Customs duties
Imports: Customs duties and import added-value taxes shall be
exempted for equipment imported by a foreign-funded project for its
own use provided the project falls in line with the Guidance Catalogue
of Industries for Foreign Investment and the equipment is a par with
the capital investment for the project. Items in the List of Goods
Imported by Foreign-Funded Projects Not Eligible for Exemption from
Customs Duties shall be exceptions.
Provisions cited above shall apply to equipment imported for their
own use by projects using foreign government loans or loans extended
by international financial organizations and, in case of processing
trade, to equipment provided by foreign investors and not to be sold
in China.
Customs duties and import added-value taxes shall be exempted for
technologies, accessories and spare parts imported along with the kind
of equipment that conforms to the provisions cited above.
Exports: Foreign-funded enterprises shall be exempted from export
duties for products produced by themselves except those whose export
is restricted or otherwise stipulated by the State.
Bonding: Customs shall oversee and administer raw and processed
materials, fuel, parts, accessories, devices and subsidiary and
packaging materials imported for implementing export contracts the
same way as bonded goods.
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Fees for construction of urban infrastructural facilities
These refer to fees charged for construction of waterworks and coal
gas, heat supply and sewage treatment plants. No more charges shall
be collected if these fees are already included in the price of land
acquired through paid transfer. The fee for construction of waterworks
shall be calculated according to the daily consumption of water by
an enterprise that are not waterworks or coal gas, thermal or sewage
treatment plants, charged at 830 yuan per ton. A fee of 600 yuan per
cubic metre shall be charged for construction of coal gas plants, which
is also based on the daily consumption of the enterprise. The fee for
construction of heating supply plants shall be 350,000 yuan for supply
of one million kilocalories per hour. The fee for the construction
of sewage treatment plants shall be calculated according to the daily
amount of treated waste discharged by the enterprise, at 800 yuan per
ton. Enterprises pay for the amount they actually use only.
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Fees charged for urban development
The so-called “urban development fee” refers to the fee for
construction of public utilities for citywide use, which lie beyond
the “Red Line” in Beijing’s urban development plans. The fee shall
not be charged on projects of paid transfer of land within the planned
urban area in case it is already included in the price paid for the
transfer. If not, the charge shall amount to 15 percent of the total
capital investment for a project. Meanwhile, energy and communications
projects and projects for developing public utilities, schools and
hospitals shall be exempted from the fee. Charges on projects outside
the planned urban area shall be decided by the relevant district and
county governments by taking as reference the relevant municipal
government regulations.
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Land use fee
(For details, see P148, Land Prices for Foreign Funded Enterprises)