Latest Legal News
Tax. Business Tax on Foreign Services
On November 10, 2008, the China State Council issued the amended Provisional Regulations of the PRC on Business Tax ("BT Regulations"). On December 15, 2008, the Ministry of Finance and the State Administration of Taxation ("SAT") issued the Implementation Rules of the Provisional Regulations of the PRC on Business Tax ("BT Rules"). Both the BT Regulations and the BT Rules will come into effect on January 1, 2009. The BT Rules reinterpret the scope of taxable services and impose business tax on foreign services.
According to these new regulations business tax is imposed on the provision of services and the transfer of intangibles and immovable properties within the territory of China. The business tax rate for most services is five percent of gross service fees. Previously, the interpretation was that the service provider would be liable for business tax only if the taxable services were performed within China.
According to this new regulations, if services are provided to an enterprise, a non business organization, or an individual in China, the service provider will be liable for business tax on or after January 1, 2009, regardless of where the services are performed. Accordingly, foreign services to a Chinese company would be subject to China business tax.
Jaime Ubilla Hosts President Michelle Bachelet in Shanghai
Jaime Ubilla and other members of the Chilean Chamber of Commerce in China hosted Chilean president Michelle Bachelet Jeria during her 2 day visit to Shanghai. President Bachelet arrived to Shanghai on Monday after joining the Boao Summit in Hainan, where she held bilateral talks with several heads of state including President Hu Jintao.
During her stay in Shanghai, President Bachelet signed Chile's participation in the 2010 Shanghai World Expo and met the Mayor of Shanghai, Han Zheng. She also held meetings with several members of the Chilean expatriate community.
"It should be clear by now that further cooperation is not only possible but also critical to sustain the growth of our economies. We can apply our vision and insights, and we should even build where nobody has built before.
We welcome our president and look forward to an encouraging future."