Dongguan Business: A Regulatory Briefing

Policies for Cultural Enterprises

On April 2, the State Council released the regulations aimed at supporting the development of cultural enterprises.

Preferential business tax (BT) will replace preferential value-added tax (VAT). Eligible cultural enterprises engaged in supporting technologies for the cultural industry can enjoy a reduced corporate income tax (CIT). Further, VAT exemption applies to rural digital cable TV. The Regulations will be effective from January to December 31, 2018.

Special SME Funds

On April 11, the Ministry of Finance and four related departments released measures for providing qualified Small and Medium Enterprises (SME) with special funds. A maximum amount of RMB 3 million will be given to technological SME’s to subsidize their R&D expenses. International cooperation and technological innovation are highly encouraged.

Simplified Tax Returns

On April 11, the State Administration of Taxation announced the cancelation of 15 tax-related documents, including the “Registration Form of Basic Information Concerning Foreigners,” and “Breakdown of Tax-exempt Exported Goods and Services.” The cancellation may ease tax related procedures.

Amended Trademark Laws

Revisions to China’s trademark law, which were adopted in September of 2013, will take effect on May 1. Of the more than 50 revisions, the most important are listed below:

• Added provisions for TM review period;
• Improved system for TM registration;
• Regulated protection for known TMs;
• Strengthened rights protection of TM; and
• Regulated activities of TM agencies.

News for Dongguan Wine Importers

China’s Ministry of Commerce (MOFCOM) terminated an 8-month countervailing and anti-dumping investigation against wine imports originating from the EU. European wine has played a large role in China’s increased interest, and imported wines have risen sevenfold over the last six years with a current 19 percent share of the market, making the termination of the investigation good news for the future of EU wine imports.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email prd@dezshira.com or visit www.dezshira.com.

Category The Know How