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.
How to Conduct a Successful Sustainability Report
Effective sustainability reporting is crucial for demonstrating an organization’s commitment to sustainable development. This article guides you through essential considerations and structured steps for a successful sustainability report. Begin by securing top-level commitment to ensure resource allocation and understand the regulatory landscape early on. Start small, focusing on core sustainability metrics, and gradually expand your scope. Develop in-house expertise and engage stakeholders to create a comprehensive sustainability narrative. A five-step process—from assessing readiness to continuous improvement—helps organizations draft meaningful reports that resonate with stakeholders and enhance sustainability efforts. With the right approach, sustainability reporting can drive significant environmental and social benefits while aligning with business objectives.
China-Germany Business Relationship Update- First Half of 2024
From 14 to 16 April 2024, Federal Chancellor of Germany Olaf Scholz paid a visit to China with a sizeable delegation comprising heads of a dozen industrial giants. The visit coincided with the 52nd year of diplomatic relations between Germany and China and the 10th year of the all-round strategic partnership between Germany and China. This article covers significant events such as Federal Chancellor Olaf Scholz’s visit to China, the robust bilateral trade figures, highlighting China’s longstanding role as Germany’s largest trading partner in recent years. Additionally, the article explores German investment trends, opportunities, and challenges in China.
China Extends Tax Incentives for Import Goods Sold at Canton Fair for 2024-2025
In an effort to enhance the China Import and Export Fair, commonly known as the Canton Fair, a notice titled “Notice on the Continuation of Tax Incentives for Imported Goods Sold During the Exhibition Period” has been issued. It extends the tax incentives for 2024 to 2025, maintaining the same benefits as in 2023. These incentives exempt eligible imported goods from import tariffs, value-added tax, and consumption tax during the fair. This initiative aims to bolster trade, ensure compliance with regulations, and foster international business relationships by supporting a favorable trading environment at the Canton Fair.
The State Administration of Taxation Announces Comprehensive Support Measures for Small and Micro Enterprises
The State Administration of Taxation in China has launched the 2024 “Spring Rain Nurtures Seedlings” action plan, introducing 12 pivotal measures to enhance the growth and resilience of small and micro enterprises. This initiative focuses on sectors like technology innovation and manufacturing, providing comprehensive policy guidance and support throughout the business lifecycle. The plan emphasizes structural tax reductions, fee simplifications, and tailored support for small cross-border enterprises. It addresses critical aspects such as tax declarations, business model adjustments, and trade method shifts. With a strong commitment to ongoing monitoring and adaptation, the initiative aims to foster a conducive environment for sustainable growth and competitiveness in the global market.
Guangdong’s Maritime Economy: Leading in the Nation for 29 Consecutive Years
The “Guangdong Maritime Economy Development Report (2024)” highlights that Guangdong has held the top spot in China’s maritime economy for 29 years. In 2023, its maritime GDP was 1.87781 trillion RMB, comprising 13.8% of the regional GDP. The maritime industry, including emerging sectors like marine pharmaceuticals and renewable energy, contributed significantly to regional growth. Technological advancements and international cooperation, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area, have bolstered its maritime sector’s robust performance.