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The newly revised Measures published by National Health and Family Planning Commission has been taken into force on 10th, Apr. 2013. Measures is tilted to the employees’ interest, the main contents are as follows: To expand the scope of diagnosis agency chosen by employee. The employee can choose the diagnosis agency located in the place where the employer is situated,…

In order to clarify issues in the previously promulgated “Administrative Measures on Value Added Tax and Consumption Tax for Exporting Goods and Services (SAT Announcement [2012] No. 24),” SAT released Announcement recently, which has been taken into effect on April 1, 2013. Highlights of Announcement are as follows: The tax of bonded materials and parts under the feeding processing trade…

The State Administration of Taxation released Announcement on Mar. 12, 2013, in which it has further clarified the issues, where the relocation agreement of a policy-based enterprise relocation project has been signed prior to the effective date of Announcement of the State Administration of Taxation on Issuing the Administrative Measures of Enterprise Income Tax on Incomes Obtained from Policy-based Relocation…

Interpretation has been taken into force on Feb. 1, 2013. The biggest highlight of Interpretation is the further explanation on non-competition: Compensation: where the parties fail to mention the compensation, the employee can request a monthly compensation by the employer based on 30% of the average monthly salary over the 12 months preceding the termination or expiration of labor contract,…

On Dec. 29, 2012, Rules has been promulgated, which will be taken into effect on Oct. 1, 2013. It has stipulated the obligations of manufacturer, seller and repairer; responsibilities of 3 guarantees; waiver of the responsibilities of 3 guarantees; settlement of disputes; and penalty of manufacturer. It has also stipulated the term of 3 guarantees, the valid period for return…

On Dec. 28, 2012, Amendment has been promulgated, which will be taken into effect on Jul. 1, 2013. Amendment has stipulated the restrictions on labor outsourcing, mainly including the following aspects: Make clear the definition of positions: “temporary” position refers to a temporary role of less than six months; “ancillary” position refers to a position providing support services to the…

“Provisions on the Administration of Recall of Defective Auto Products” (“Provisions”) comes into force in 2004, which is criticized for its legislation hierarchy, its contents lacking of practicality, its punishment is needed to be strengthened. with Provisions, Regulations raises the legislation hierarchy to Administrative Regulations, and amends the following aspects: (a) increasing the amounts of punishment, for example, if the…

From Aug. 1 2012, the scope of the pilot work of levying value-added tax(“VAT”) in lieu of business tax shall be expanded from Shanghai to Beijing , Tianjin, Jiangsu Province, Anhui Province, Zhejiang Province (including Ningbo), Fujian Province (including Xiamen), Hubei Province and Guangdong Province (including Shenzhen). Levying value-added tax in lieu of business tax shall be conducted in the…

On 16th September, 2012, the State Council released “Suggestions on the Promotion of a Stable Growth in Foreign Trade”, in which two points are highlighted as following: (a)Speed up the relevant processes, reduce the relevant fees. For example, extend the scope of territorial declaration and port clearance under effective supervision; waive the printing costs for paper of verification of export…

“Notice on Individual Income Tax Policies for Work-Related Injury Insurance Benefits Obtained by Employees Injured while Working”(No. 40 [2012] of the Ministry of Finance) has stipulated that work-related injury insurance benefits obtained by employees and their close relatives in accordance with the Regulation on Work-Related Injury Insurance (Order No. 586 of the State Council) shall be exempt from individual income…