On 14 August 2017, the State Administration of Taxation (SAT) issued Announcement  No. 30 (“Announcement 30”). This set out value-added tax (VAT) implementation rules clarifying the following issues:
Announcement 30 has entered into effect from 1 September 2017 except for issue iv., which will be effective from 1 January 2018.
In addition, an 18 August State Council executive meeting indicated the direction of the future VAT reform including:
* You may access the following KPMG publications for VAT policies and their impacts:
On 2 August 2017, the State Council released Administrative Regulations on Supervision of Financing Guarantee Companies (State Council Order No. 683, the “2017 Regulations”). The 2017 Regulations replaced the 2010-issued Interim Measures for the Administration of Financing Guarantee Companies (the “2010 Measures”), and will take effect from 1 October 2017. Financing guarantee business is defined under 2017 Regulations to cover provision of guarantees for debt financing, either in the form of borrowings or debentures.
The 2017 Regulations made significant changes to the 2010 Measures:
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Transitional rules for established financing guarantee companies to meet their commitments under the 2017 Regulations are provided for, and a precise timeframe for compliance with the new rules is to be set out soon. The 2017 Regulations also clarify responsibilities supervision requirements for the regulatory authorities.
On 10 August 2017, the Chinese Ministry of Human Resource and Social Security (MOHRSS) issued Ren She Ting Fa  No. 93 (“Circular 93”), announcing that the 2016-signed Agreement on Social Security with Netherlands (“China-Netherlands social security agreement”) and its Memorandum of Understanding (MOU) come into effect from 1 September 2017.
Circular 93 clarifies the following implementation matters:
The detailed procedures for application of the social security exemption are set out in Circular 93.
* China’s Social Insurance Law requires employers and their employees to contribute towards social insurance schemes, including pensions, medical, unemployment, maternity insurance and work-related injury insurance. Since 15 October 2011, expatriate employees working in China are also required to contribute. To mitigate the burden of double contributions in two countries by cross-border employees, China has been rapidly building up its network of bilateral social security agreements. It has so far signed them with 9 countries, including Germany, South Korea, Denmark, Finland, Canada, Switzerland, Netherland, France and Spain. These have all entered into force, except for the China-France and China-Spain agreements. China is also negotiating agreements with further countries, including Belgium, Serbia, Japan and Romania.