China tightens rules for foreign investors

摘要

Foreign investors may need to revisit then-strategies in China in view of the stricter administration of Representative Offices (ROs), the limited business scope and the increased tax costs imposed by the Chinese Government. Effective January 1,2010, new tax measures were released by the State Tax Administration which are more stringent than the previous tax rules. In addition, the State Administration of Industry and Commerce and the Ministry of Public Security jointly issued a notice around the same time to govern the procedures for the establishment and supervision of ROs.