Promulgation of Catalogue of Industries for Guiding Foreign Investment (2015 Revision)

The Catalogue of Industries for Guiding Foreign Investment (2015 Revision) has been promulgated by National Development and Reform Commission and the Ministry of Commerce, and will come into force on 10 April 2015. Simultaneously, the 2011 Revision shall be repealed.

Compared to the 2011 Revision, in the Catalogue of Prohibited Industries for Foreign Investment, the items “internet publication service” and “enterprises in the business of auction and sale of culture relic” are added. In the Catalogue of Restricted Industries for Foreign Investment, items “distribution of audio and video production (excluding movies) (limited to Chinese-foreign equity)” and “operation of entertainment premises (limited to Chinese-foreign equity or contractual joint ventures)” are deleted, and the maximum foreign shareholding limit of 50% for E-Commerce has been excluded from other Value-Added Telecommunication business. Furthermore, in the Catalogue of Encouraged Industries for Foreign Investment, the restriction of “shareholding by Chinese party” over “operation of performance venues” is removed.

On 29 March 2015, SW partner Mr. Eric Lui and our Head of Business Development (China) Ms. Connie Yeung delivered a presentation at a conference organised by the Finance and Securities Committee of the Bar Association of Chengdu heed at AllBright’s office in Chengdu.

At the conference, Mr. Lui and Ms. Yeung discussed asset protection strategies, the advantages and application of overseas trusts, building overseas assets and PRC-guaranteed foreign loans.

Please contact our Eric Lui for any enquiries or further information about this event.

SW Senior Consultant, Mr. Angus Forsyth, attended the GALA meeting from 29th to 30th March 2015 which was held in Washington D.C. by Reed Smith L.L.P.

60 people from worldwide GALA membership attended for a 2 day full session of mutual introduction and papers on legal advertisement.

GALA regularly solicits articles on advertising and data privacy law from its members and regularly submits these for publication in Mondaq.

Mondaq is one of the world’s most comprehensive online resources of professionals’ expertise and knowledge. Since 1994, Mondaq has been working with leading professional advisers the world over to deliver insight, opinion and commentary on legal, regulatory and financial topics across every continent.

Before the GALA AGM in Washington D.C., Mondaq published an article submitted by Angus Forsyth to GALA on the possible introduction of the Personal Data (Privacy) Ordinance section 33 controls on trans-border transfer of personal data.

This posting attracted so much attention that it established a record for the most visited and read article on Mondaq in Hong Kong which is a very significant worldwide promotion for SW and GALA at no cost.

Please contact Mr. Angus Forsyth for any enquiries or further information about this event.

In November 2014, the SPDB completed the share acquisition of South Asia Investment Management Co., Ltd. and set up SPDB International Holdings Limited (“SPDB International”) .

The major businesses of SPDB International consist of (1) investment banking business, (2) financial institutions and financial market related business, (3) small and medium enterprises business, (4) wealth management business and (5) electronic banking business. SPDB will provide services in relation to mergers and acquisitions, financial adviser and underwriting, etc.

Please contact Mr. Hank Lo or Mr. Eric Lui for any enquiries or further information about this event.

SW partner, Ms. Heidi Chui, attended the INSOL International San Francisco Annual Regional Conference from 22 to 24 March 2015. Over 600 delegates from law firms, accounting firms and business advisory firms from around the world who specialise in insolvency and restructuring had attended the conference.

The conference served as an excellent opportunity for insolvency practitioners from various jurisdictions to learn from the others through the dedicated networking time and educational program. Eminent figures in the area such as The Hon. Justice James Allsop AO of Federal Court of Australia, The Hon. Justice Ian Kawaley of Supreme Court of Bermuda, Cherno S. Jallow, QC of British Virgin Islands Financial Service Commission and Mahesh Uttamchandani of The World Bank hosted insightful breakout sessions covering issues including cross-border insolvency and the role of hedge funds in insolvency practice around the world.

Please contact our Ms. Chui for any enquiries or further information about this conference.

“Announcement of the State Administration of Taxation on Issues Relating to Corporate Income Tax on Expenses Paid by an Enterprise to its Overseas Affiliated Party” was promulgated on 18 March 2015

The State Administration of Taxation promulgated the “Announcement of the State Administration of Taxation on Issues Relating to Corporate Income Tax on Expenses Paid by an Enterprise to its Overseas Affiliated Party” (“the Notice”) on 18 March 2015.

It is stipulated in the Notice that taxation authorities can adjust the calculation of tax payable if the payments by a Chinese enterprise to an overseas affiliate are not made in accordance with the arm’s length principle. The taxation authorities can also request enterprises to submit for record contracts or agreements entered into with affiliates to prove that relevant transactions have actually occurred and other information showing that such transactions were made in accordance with the arm’s length principle. The notice also lists out several scenarios under which payments are not made in accordance with the arm’s length principle, including where holding or financing companies are established overseas, all payments made to overseas affiliates for royalties in respect of IPO financing activities are not deductible for calculation of enterprise income tax under the Notice.
The Notice came into effect on the date of its promulgation.