Land value increment tax will continuously be instrument for the real estate regulation

Posted by on October 12, 2011 under Latest Regulations, Uncategorized | Be the First to Comment

In the first half of this year, the government issued series of regulatory measures on the real estate industry, and the price of real estate started to fall. Obviously, the government will issue more measures in the future. Currently, besides the first tier cites, the second tier cities starts to response as well.
Recently, Haikou local tax bureau issued Opinion on land value increment tax liquidation, and Jiangsu local tax bureau issued Notice on enhancing collection and management of land value increment tax (Sudishuifa [2011] No 53).
Haikou Opinion stipulates the concept of expense, the deduction demands and such in detail and the summary is as follows:
i. Expense (except development indirect cost) listed in the project development cost with national tax invoice, should get matched fabrication invoice, and mark in category in the report notes. Otherwise, it will be deemed as duplicate project cost.
ii. Expense listed in the project development cost could not be confirmed merely by “project content” of invoice. The opposite party should get relevant qualification as demand. Otherwise, the expense will not be confirmed.
iii. In preliminary project fees-three connections and one leveling expense, three connections refer to three connections project outside planning, three connections project within planning belong to project measures fee according to construction contract, and should be assumed by contractor.
iv. The planning construct expense in preliminary project fees refers to the whole planning construct expense of project, excludes the expense of single project; the same is the design expense in preliminary project fees.
While, the NO 53 notice of Jiangsu emphasized on the development expense accounting management:
i. Local tax bureau should formulate “the real estate exploitation expense reference standard” according to the construction and installation project cost index issued by construction and installation project cost management departments, quota standard and guide price in construction material market.
ii. To excessively high expense, tax authorities could demand tax payers to provide the final audit report or settlement audit report of projects. To excessively high expense without due reason, tax authorities should deduct the expense according to “the real estate exploitation expense reference standard”, and transfer it to tax inspect departments if serious.
Seen from these two documents, the tax authorities will pay more attention to the rationality of expense and the conformity of vouchers during land value increment tax liquidation. Both format and substance should be qualified, and the format seems more important.

Tips on tax credit of enterprise’s oversea income

Posted by on under International tax | Be the First to Comment

I. Laws and regulations
i. Article 23, 24 of Enterprise income tax law
ii. Notice on tax credit of enterprise oversea income issued by SAT and the Ministry of Finance (Caishui [2009] No 125)
iii. Circular on issuing operation guide on tax credit of enterprise oversea income by SAT (Circular No 1 of 2010 SAT)
II. Implement
i. Resident enterprises could deduct tax derived outside China from current payable tax within limit.
ii. To resident enterprises with individual legal entities outside China, all equity income including dividends and such from those entities outside China should be counted into the resident enterprises’ outbound tax.
iii. To resident enterprises with non-individual legal entities outside China, if branches are not recognized as resident entities according to foreign tax laws or tax treaties, the taxable income should be the balance that outbound income minus relevant reasonable expense.
iv. To resident enterprise with non-individual legal entities outside China, entities’ deficit couldn’t deduct taxable income, but could be made up with other projects of the same country or future income without 5 years’ limitation.
v. To outbound investment income such as dividends, the income should be confirmed according to the date of profit distribution decision. Outbound income such as interest, rent, loyalty, and such should be confirmed according to the date of contractual deal of trade price.
vi. If enterprises could not confirm the oversea tax truly and accurately due to objective reasons, and the real tax rate of source country of region is higher than 12.5%, then the deduct limit could be 12.5%.
vii. Oversea tax deduct is divided into direct deduct and indirect deduct. Resident enterprises could deduct tax by direct and indirect ways, and non-resident enterprises could only deduct tax by direct ways.
In generally, Indirect tax deduct could only be applied to three layers foreign enterprises. Some regulations might make other rules such as enlarge three layers to five layers.
III. Implement risks
i. The tax credit should be conducted according to different characters of outbound entities set by resident enterprises, the point is individual legal entities or not.
ii. Pay attention to the confirm time of outbound income.
iii. Pay attention to the applicable conditions that calculate deduct limit by simple methods.
iv. The general principle of calculating outbound income is applicable to three layers share holding structure, and should pay attention to five layers regulations.

The 2011 China Tax Law Forum & The First China Tax Lawyers Forum

Posted by on September 13, 2011 under Hwuason News | Be the First to Comment

The 2011 China Tax Law Forum & The First China Tax Lawyers Forum

Tax law adjusts the rights and obligations between tax payers and authorities. Due to the compulsion and gratuitousness character of tax, it is particularly important for the government to protect tax payers’ legal rights and interests from violation during tax collection and management. Tax lawyers are important professional power in tax system construction, their development is closely related with tax system development. The more complicated and consummate the tax system is, the more developed the tax lawyer profession will be.

For the past few years, Chinese tax system reform has stepped into a positive development orbit. With the development of society economy and the professional division trend of lawyer profession, tax lawyers’ function is being highlighted, which is a great opportunity to Chinese tax lawyers and tax law business.

The rise and development of Chinese tax lawyers is not only the legal barrier of tax payers’ interest protection, but the solid backing of legal risks precaution. What’s the difference between tax lawyers and CPA and CTA? What’s the practice field of tax lawyers? How to guarantee the legality of tax planning? What’s the latest trend of international tax business? How to protect tax payers’ legal rights and interests in tax issues? Those are all hot topics of tax lawyers and tax payers.

To enhance Chinese tax lawyers’ professional skills, promote the standardization and systematization of tax payers’ interests protection, improve the Chinese tax lawyer profession development, and construct a perfect tax management environment, China National Bar Association will hold “2011 China Tax Law Forum and the First China Tax Lawyers Forum” on 27th and 28th October, with the theme of “Tax service-the opportunity and challenge of Chinese tax lawyers development”.

This forum will invite officers from the National People’s Congress, the State Council, the Ministry of Finance, the SAT and other relevant ministries, together with the leaders of Pecking University law school, China University of Political Science and Law Civil Commercial and Economic law school, and the well known tax law experts and tax lawyers.

Welcome lawyers sign up and attend “2011 China Tax Law Forum and the First China Tax Lawyers Forum” and submit essay, we will organize experts to select excellent essay for publication. Welcome tax professionals, experts and scholars, enterprise CEO, CLO and managers to attend the forum and submit essay.

 Schedule one: Organization Structure

 Host:

China National Bar Association

 Sponsor:

China National Bar Association Professional Council for Economic Sciences

PeckingUniversityLawSchool

China University of Political science and Law Civil Commercial andEconomicLawSchool

CentralUniversityofFinanceand Economics Tax Education Institute

 Organizer:

Beijing Hwuason Law Firm

 Schedule Two: Date

This forum will be held from 27th to 28th October, 2011

(The whole date of 26th is used for guests’ registration)

 Schedule Three: Location

This forum will be held in the place of Beijing Friendship Hotel.

 Schedule Four: Participation Fee and Guest Speakers

 The specific standard of the participation fee is RMB 700 Yuan per person (excludes the transportation and accommodation fee).

For Guest Speakers, we offer a series of specific services with a reasonable cost. Now we are still looking for more guest speakers. If interested, please contact us by the phone number 8610-58697282 or email to forum@hwuason.com.

 Schedule Five: Application

1. Application Period

Forum accepts enrollment from today to 21st October, 2011. When the quotas are all taken, the organization group will issue a closing of entry notice on China Tax Law Forum.

 2. Application Methods

(1) Apply on internet:

Log in China Tax Law Forum, www.chinataxlawforum.com, download the registration form, and fax or email it to the organization group.

(2) Fill in the registration form in the attachment and send it to the organization group by post, email or fax, by the end of 21st October, 2011.

Due to the meeting place capacity, please apply as soon as possible.

 Schedule Six: Forum Essay

This forum recruits essays on the following themes:

  1. Research on practice issues in tax related criminal defense
  2. Research on tax related administrative penalty issues
  3. Research on tax payers’ interests protection
  4. Research on tax management of lawyer profession
  5. Research on trust tax management
  6. Research on tax management to finance and insurance industry
  7. Research on tax management to real estate industry
  8. Research on tax management to limited partnerships
  9. Research on the legal validity of current tax law system

10. Cross research on economic contract and tax paying obligation

Essay format and style requirements:

  1. Essays should be written in standard essay format and style.
  2. Essays should be submitted to the organization group by email (Please indicate: 2011 China tax lawyers forum essay) by the end of 21st October, 2011. The organization group email address is: forum@hwuason.com

 Schedule Seven: Others

Person to Contact: Li Ying

Tel: 8610-58697282, 15001114157

Fax: 010-58697292

Web page: http://www.chineselawyer.com.cn/pages/2011-8-29/s61845.html (ACLA )

E-mail: forum@hwuason.com

Address:Suite1505, Tower B, Jianwai SOHO, No 39, East 3rd Ring Road, Chao Yang District,Beijing

Post Code: 100022

 If other matters not mentioned here, please contact with organization group on the above contacting ways.

 Attachment: 1. Forum Agenda

           2. Forum Registration Form

 China National Bar Association

29th August, 2011

Coming 2011 China Tax Law Forum & The First China Tax Lawyers Forum held by ACLA and Organized by Hwuason

Posted by on September 7, 2011 under Hwuason News | Be the First to Comment

Notice of 2011 China Tax Law Forum & The First China Tax Lawyers Forum

ACLA August 29th

 

To enhance tax skills of Chinese lawyers, contribute to the standardization and institutionalization of taxpayer rights protection, and promote development of tax lawyer profession, All China Lawyers Association is going to hold 2011 China Tax Law Forum & The First China Tax Lawyers Forum from 27th October to 28th October at Beijing Friendship Hotel in Beijing in the theme of “Tax Law Service: Opportunities and Challenges in Front of China Tax Lawyers”

Celebrate Hwuason win ALB the best tax law firms award

Posted by on April 18, 2011 under Hwuason News | Be the First to Comment

 

 

On 4th March 2011, ALB China Law Awards 2011 award list announced, and Hwuason won the best tax law firm. As a professional law firm specialized in tax law, Hwuason has gained clients’ high appraisal due to its perfect service and consummate professional.

ALB legal award, which is familiar and approbated by insiders, is set up by Asian Legal Business (ALB) with headquarter in Australia. It recognizes the excellence and outstanding achievements of China’s leading law firms and in-house legal teams as well as the top deals and dealmakers. The awards ceremony has gained extensive attention of foreign and Chinese legal professionals and attracted numerous China’s most influential solicitors, in-house counsel, investment bankers, judiciary and CEOs.

Reference: http://cn.albawards.legalbusinessonline.com/Winners/29862/details.aspx