Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/4/2012

China - Simplified foreign exchange rules for direct investments 

December 4:   China’s State Administration of Foreign Exchange issued guidance that is intended to simplify and amend the foreign exchange rules with respect to direct investments made in China.

The new guidance—Circular 59, which is effective 17 December 2012—includes removal of 35 administrative approval requirements and simplification of 14 administrative approvals. Also, most pre-approvals for routine operations are “downscaled.”


Circular 59 (known in English as “Further adjustments to measures for the administration of foreign exchange for direct investment”) aims to simplify the administrative procedures, increase efficiency, cut costs, and improve China’s domestic investment environment.


Although control measures have changed, there is no substantive change in foreign exchange control on direct investment—which means that companies are still required to provide relevant documents for registration purposes.


Moreover, banks will undertake more risk-control responsibilities.


Read a December 2012 report [PDF 168 KB] prepared by the KPMG member firm in China: Update on Administration of Foreign Exchange for Direct Investment




©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to go-fmtaxnewsflash@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

 

Share this

Share this

Subscribe

Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)


Already a Subscriber? Login


Not a member? Subscribe now

Contact us