Recently, the Ministry of Culture and Tourism of the PRC released a Circular on Adjusting Approval Conditions for Entertainment Venues and Internet Access Locations, which allows foreign investors to set up wholly foreign owned entertainment venues in China’s mainland.
According to the foregoing Circular, foreign investors, investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and investors from Taiwan shall submit an application to the provincial administrative department of culture and tourism for establishing an entertainment venue in China’s mainland. The application documents, conditions for establishment and procedures involved are consistent with those for Chinese domestic investors.
According to the Regulations on the Administration of Entertainment Venues of the PRC, entertainment venues refer to places such as singing, dancing and amusement that are open to the public for profit-making purpose.
Previously, foreign investors are only allowed to open entertainment venues in a joint venture with a Chinese partner. Since 2013, China has attempted to gradually loosen restriction on the equity ratio of foreign investments in the establishment of entertainment venues. The progress is as follows:
In 2013, the establishment of wholly foreign owned entertainment venues was allowed for the first time in China (Shanghai) pilot free trade zone;
In 2015, the establishment of wholly foreign owned entertainment venues was allowed in China (Fujian) pilot free trade zone;
In 2018, the establishment of wholly foreign owned entertainment venues was allowed in all China pilot free trade zones;
Since 27 May 2021, the restriction on the equity ratio of foreign investments has been abolished and wholly foreign owned entertainment venues are allowed to be set up in China’s mainland.
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Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
Intangible assets refer to identifiable non-monetary assets owned or controlled by an enterprise that have no physical form, usually including patent rights, non-patented technologies, trademark rights, copyrights, concessions, land use rights, etc. The following is a brief introduction to several tax-related issues of mixed intangible assets.
Individual industrial commercial defines as individuals or families who are involved in industrial and commercial activities within lawful areas, registered and recorded as law. Individuals attends in industrial and commercial activities should pay individual income tax, Actual and reasonable payment for employees as wages and salaries, allowing for deduction. Employers’ pre-tax deduction for salaries would not be allowed.
The taxpayers of Enterprise Income Tax include any enterprise and other organizations (not applicable to sole proprietorships and partnerships) which have income derived from China. Including resident enterprises and non-resident enterprises.Resident enterprises: enterprises which are established in China according to Chinese law or established in accordance with laws of foreign countries (regions) but have actual management institutions in China.
An enterprise needs to pay enterprise income tax in advance on a quarterly basis for its business and need to declare and paid the yearly income tax within five months after the completion of a tax year and carry out "more refund and less paid", that is, the tax settlement and payment.
