China Releases Circular to Revise and Repeal Certain Administrative Regulations

Dec. 14 – China’s State Council released the “Decision on Revising and Repealing Certain Administrative Regulations (Order No.628 of the State Council, hereinafter referred to as the ‘Decision’)” on November 9, which revises certain provisions within five administrative regulations and repeals five administrative regulations. Key information taken from the Decision can be found below.

Revisions to administrative regulations

Paragraph 2 of Article 28 of the Administrative Provisions on the Registration of Enterprise Names has been revised to the following: Where enterprises fail to apply for administrative review within the prescribed time limit, or refuse to enforce the review decision after the issuance of administrative review and fail to lodge a lawsuit, the competent registration authority may alter the enterprises’ name in a coercive manner and withhold the business license of the enterprises.

Paragraph 2 of Article 64 of the Implementing Rules of the Law of People’s Republic of China on the Administration of Tax Collection has been revised to the following: Tax authorities shall include the late fees as well as any expenses arising out of auctions and sell-offs when determining the value of commodities, goods or properties detained and sealed up in accordance with the provision of the preceding paragraph.

Article 65 of the Implementing Rules of the Law of People’s Republic of China on the Administration of Tax Collection has been revised to the following: For commodities, goods or properties that are valued in excess of the amount of tax payable and are inseparable, the tax authorities may wholly detain, seal up, or auction such commodities, goods or properties if the taxpayers, withholding agents or tax payment guarantors have no other properties or assets available for enforcement.

Paragraph 2 of Article 69 of the Implementing Rules of the Law of People’s Republic of China on the Administration of Tax Collection has been revised to the following: After deducting taxes payable, late fees, fines, and expenses for auctions or sales, the remaining part of the income from auctions or sales shall be returned to the taxpayer within three days.

The Decision also repeals the following five administrative regulations:

• The Regulations on the Compulsory Casualty Insurance for Railway Passengers
• Rules Governing Financial Affairs of Administrative Units
• Interim Provisions on the Financial Management of Non-Trade and Non-Operational Foreign Exchange
• Interim Regulations of the People’s Republic of China on the Regulation Tax Applicable to Fixed Asset Investment Direction
• Rules Governing Financial Affairs of Public Institutions

The Decision is scheduled to take effect from January 1, 2013.

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