Legislation Date of issue and issued by Effective Date
1.Provisional Regulations of the People's Republic of China on Value Added Tax Detailed Rules for Its Implementation 13 Dec. 1993, by State Council 25 Dec. 1993, by Ministry of Finance 1 Jan.,1994 1 Jan.,1994
2.Provisional Regulations of the People’s Republic of China on Consumption Tax Detailed Rules for Its Implementation 13 Dec.1993, by State Council 25 Dec.1993, by Ministry of Finance 1 Jan.,1994 1 Jan.,1994

In the morning of June 20th, 2008, the delegation of AIPLA (American Intellectual Property Law Association) visited Shanghai Bar Association and Intellectual Property Law Committee, representatives has attended the forum in Shanghai Bar Association. During the session, deputies of China and US have introduced their own associations and committees, as well as back ground information of members who attended the meeting.

Tax legislation
State organs that have the authority to formulate tax laws or tax policy include the National People's Congress and its Standing Committee, the State Council, the Ministry of Finance, the State Administration of Taxation, the Tariff and Classification Committee of the State Council, and the General Administration of Customs.

Westlaw is generally recognized as the best legal online database provider in law indutry, and it is almost the necessary on-line legal research tool to U.S. legal practitioners and law students. My knowledge of Westlaw originated from “Black’s Law Dictionary”. At that time, I heard that it is the Bible of a lawyer. Therefore, I bought one of version 7 against many setbacks. And several years ago, I bought the latest version 8. In last year, I bought a Black’s Law Dictionary® Digital. I guess I can be regarded as great supporters of Westlaw.

Types of taxes
Under the current tax system in China, there are 26 types of taxes, which, according to their nature and function, can be divided into the following 8 categories:
• Category of turnover taxes. It includes three kinds of taxes, namely, Value-Added Tax, Consumption Tax and Business Tax. The levy of these taxes are normally based on the volume of turnover or sales of the taxpayers in the manufacturing, circulation or service sectors.

With the development of China’s economy, more and more foreign investment enters into the domestic market. Foreign investors may be looking forward to sharing the achievements of the development of China’s economy, or they may have already had business in China. However, things won’t remain propitious forever. Foreign investors have to deal with lawsuits in China. They are generally in a disadvantaged position for that they are not quite clear about Chinese laws.

Wealth Finance Consulting - China Manufacturing Delivered

We believe that solid information is the backbone of a sound China strategy. To support our friends we're launching a periodic newsletter where we'll focus on important issues relevant to US companies doing business in China.

In this first newsletter, we take a look at how a recent major change in China tax policy impacts the cost of exports as well as how the USD / RMB exchange rate will impact your business.