China Adjusts Export Tax Rebates for Certain Goods
On 15 November 2024, China announced significant changes to its export tax rebate policies, effective 1 December 2024. The elimination of rebates for aluminium, copper, and certain biofuels, along with a reduction in rebate rates for batteries and refined oil products, is set to impact businesses across key sectors. This shift aims to address the financial burdens faced by exporters under the current VAT framework. Companies must now evaluate how these adjustments affect their operations and develop strategies to navigate the evolving landscape. Discover how these changes could reshape the export market and what it means for your business.
Shenzhen Strengthens Support for Venture Capital Ecosystem
On 24 October 2024, the Shenzhen Municipal Committee’s Office of the Financial Committee promulgated the Action Plan for Promoting High-Quality Development of Venture Capital Investment in Shenzhen (“Action Plan”). The document was released as a consultation draft, inviting public input. The deadline for feedback submission was 31 October 2024.
Hong Kong Publishes Outcomes from Pillar Two Tax Regime Consultation
Between December 2023 and March 2024, the HKSAR Government conducted a consultation on the Global Anti-Base Erosion (“GloBE”) Rules and the Hong Kong Minimum Top-up Tax (“HKMTT”). Upon the conclusion of the consultation, Hong Kong’s Financial Services and the Treasury Bureau, in collaboration with the Inland Revenue Department, has recently published a Legislative Council (“LegCo”) Paper. The document recapitulates the input gathered from various stakeholders and presents the government’s feedback based on the findings.
New Peruvian Port to Serve as Key Gateway for Latin America-Asia Trade
The Chancay Port in Peru, a $3.6 billion project funded by China’s Belt and Road Initiative, is set to transform trade between Latin America and Asia. Located 70-80 kilometers north of Lima, it can handle large ships and reduce shipping times by 10-20 days. While promising economic benefits for Peru, the project has raised concerns about China’s influence in the region.
Hong Kong Set to Revise Copyright Ordinance
Hong Kong’s Intellectual Property Department has concluded a two-month public consultation on copyright concerns related to AI advancements. The consultation focused on protecting AI-generated works, addressing copyright infringement liability, and introducing a potential text and data mining exception. The existing Copyright Ordinance can protect AI-generated works, treating them as “computer-generated” creations. The proposed changes aim to balance AI development promotion with copyright protection.
China’s New Beneficial Owner Disclosure Rules: Key Insights for Businesses
Effective November 1, 2024, the Administrative Measures on Beneficial Owner Information mandate that companies, partnerships, and foreign company branches in China disclose beneficial ownership details to enhance market transparency and combat money laundering. Issued by the People’s Bank of China (PBC) and State Administration for Market Regulation (SAMR), the Measures align China with global standards set by the G20 and FATF. Non-compliance may lead to fines up to 50,000 yuan. The disclosed information remains confidential and accessible only to authorized government and AML institutions, emphasizing the need for proactive compliance.
China Promulgated the Negative List 2024 for Foreign Investment Access at National Level
On November 1, 2024, China enacted the “Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition),” repealing the previous list published at the end of 2021. Compared with the 2021 edition, the 2024 national Negative List for Foreign Investment Access has removed the last two remaining restrictions in the manufacturing sector. The number of restricted items on the national Negative List has been reduced from 31 to 29.
Implementation of the Registered Capital Management System under the Company Law of China
China has recently updated its regulatory framework with the State Council’s Provisions on the Implementation of the Registered Capital Management System under the Company Law (Decree No. 784), which took effect on July 1, 2024. These provisions are designed to enhance transparency, regulate shareholder commitments, ensure the safety of market transactions, and improve the overall business environment.
The New Era of Customs Duties: A Comprehensive Analysis of the Law of the People’s Republic of China on Customs Duties (2024) and its Comparison with the 2017 Regulations
On April 26, 2024, the Standing Committee of the National People’s Congress promulgated the Law of the People’s Republic of China on Customs Duties under Presidential Decree No. 23. This new law, effective from December 1, 2024, marks a significant overhaul of China’s customs duty framework, replacing the 2017 Regulations on Import and Export Duties. The new law aims to standardize customs duty collection and payment, promote foreign trade, and support high-quality development. It introduces a comprehensive framework, including duty items, rates, calculation methods, and tax incentives. The law also emphasizes compliance and enhanced roles for customs authorities, aiming for clarity and consistency in duty application, thus impacting international trade and customs administration in China.
Exploring Hong Kong’s Patent Box Regime
On July 5th, 2024, the Hong Kong SAR Government enacted the Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Ordinance 2024, introducing a “patent box” tax incentive regime (“Patent Box Regime”). This regime offers tax concessions on qualifying profits derived from eligible intellectual property (IP) developed through research and development (R&D) activities within Hong Kong. By implementing this regime, Hong Kong seeks to stimulate the growth of IP trading, encourage companies to engage in IP-related activities, and solidify its position as a leading regional hub for intellectual property.
This article delves into the intricacies of the Patent Box Regime, highlighting its objectives, key features, eligibility criteria, and implications for businesses.