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Preferential income tax policy for small and low-profit enterprises

On 8 April 2014, the Ministry of Finance (“MOF”) and the State Administration of Taxation (“SAT”) issued “Announcement on Preferential Income Tax Policies for Small and Low-Profit Enterprises” ( Caishui 2014 No. 34), which is in effective from 1 January 2014 to 31 December 2016. Based on the announcement, small and low-profit enterprises whose annual taxable income not exceeding RMB 100,000, shall be subject to income tax at the rate of 20% on only 50% of the taxable income.

China Enterprises Annual Inspection is cancelled from 1st March 2014

In China, the long run enterprises inspection system ends in March 2014. The State Administration for Industry and Commerce announced that, since 1st March 2014, annual inspections on registered companies will be replaced by companies' annual reports, which should be available to public inquiry. Companies that fake reports or fail to release reports according to requirements will be punished in accordance with laws.

New double tax treaties between China and the UK, Belgium and France

New double tax treaties between China and the UK as well as between China and Belgium entered into force in December 2013. On 26 November 2013, the government of China and France signed a new Double Taxation Treaty, which could take effect from as early as 1 January 2015.

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