BEIJING Wholesale Hydro Flask 40 OZ , Dec. 28 (Xinhua) -- China's Ministry of Finance (MOF) said Thursday it will exempt foreign companies from paying provisional withholding income tax on profits they re-invest in the country.


The news comes as the Chinese government is moving to attract foreign investors after a host of countries unveiled similar measures to lure foreign and domestic investment.


Foreign companies play an increasingly important role in boosting China's economy and promoting industrial and technological upgrades. The new policy will provide a better environment for foreign companies in the long-run, encourage them to continuously expand investment in China and boost win-win cooperation, the MOF said on its website.


The exemption is effective from January 1, 2017, meaning taxes paid this year will be refunded.


Foreign companies must meet a string of conditions to be eligible for the exemption, including direct investment into sectors encouraged by the Chinese government, and investment returns must be transferred directly to invested companies.


Countries are competing to attract foreign investment with a mixture of incentives including tax cuts and easier market access.


Spokesman of China's Ministry of Commerce (MOC) Gao Feng said earlier this month that China will remain a popular destination for foreign investment, due to economic stability, market potential and further opening up.


"Tax policy is an important factor in investment decisions, but it is not necessarily a decisive one," he said. "Economic stability, market potential and business environment of the target country are also important factors for investors to consider."


China implemented a revised foreign investment catalogue earlier this year, which relaxed restrictions on foreign investment in a number of industries.


Next year, a negative list approach to market entry, which states the sectors and businesses that are off limits to foreign investment, will be expanded nationwide.


Foreign direct investment (FDI) into the Chinese mainland rose 9.8 percent year on year to reach 803.62 billion yuan (around 122 billion U.S. dollars) in the first 11 months, faster than the 1.9-percent year-on-year increase registered in the first 10 months, according to data from the MOC.



Business > JobBusiness Contracts

Posted by nick_niesen in Business on October 27th, 2010


A business contract is a legal promise made between two or more parties. A contract may be drawn when the associated parties wish to enter into a transaction like buying or selling, performing services, leasing properties, collaborating in joint ventures, advertising, manufacturing, distributing or selling goods, etc. The business contract is considered a surety against cheating by any of the associated parties.


The length of a business contract depends on the number of clauses being mutually agreed upon. It may be of a single page or it may run into a dossier of several pages. Every business contract is legally binding and attracts relevant stamp duties. The general practice is to compose such business agreements in the presence of lawyers of all the parties involved.


The first page of a business contract usually contains the names and addresses of the signatories. A brief description of their jobs can be mentioned along with their names. The date of signing the contract is put up on the first page.


The next part of the contract is called the recitals. This is a very short description of the type of transaction the parties are going to enter into. It is usually no longer than a paragraph. After recitals follow the specifications, in which there is a detailed description of the job the parties are to undertake. This part may run into several pages and it contains a very succinct description of the exact job portfolio. It sometimes contains formulas, diagrams, sketches and graphs in order to better explain the nature of the job.


Payment comes in the next section. A very cle