Gauging impact of US FATCA on corporate compliance practice

Found at the heart of the US Foreign Account Tax Compliance Act (FATCA) are the information reporting and tax withholding systems, that is to say they require foreign financial institutions to report to the US Internal Revenue Service (IRS) information on the foreign accounts of US taxpayers or information on the financial accounts of foreign entities that have substantial US owners. Foreign financial institutions that fail to comply with their information reporting obligations will be assessed 30% withholding tax on certain income (stock dividends, interest, insurance premiums, etc.) sourced from the US.

Domestic A-share listing by for-profit educational institutions

The Standing Committee of the National People’s Congress (NPC) amended the Education Law on 27 December 2015, revising the provision reading “no organization or individual may establish a school or other educational institution with the aim of making a profit” to “a school or other educational institution that is founded with, or the founding of which is participated in with, fiscal funds or donated assets may not be established as a for-profit organization”.

Shanghai new property rule: more than just attempts to contain property prices

Public welfare sponsorship or commercial bribery?

It has been common in recent years that drugs and medical device companies sponsor professionals to participate in medical science conferences. However, such companies, whose primary goal is to maximize profits, should consider legal issues, such as the differences or boundaries between sponsorship and commercial bribery, as well as the resulting legal risks, when they voluntarily sponsor medical staff to take part in non-profit registered academic conferences on medical science.

Analysis on the Measures on the Security Assessment for Personal Information and Important Data to be Transmitted Abroad (Consultation Paper)

HK rules shed light on personal data protection

The legal framework governing personal information in mainland China is quite limited, with most provisions addressing the issue scattered in the individual clauses of various regulations. Despite this, numerous large enterprises, in order to reduce compliance risks in their operation, have internally formulated policies for protecting customers’ personal information and, when entering into contracts with customers, will sign an agreement for protecting personal information. Hong Kong has substantial reference value when it comes to legislation and the regulation of information protection. This article will discuss personal information protection practice based on the six basic principles enumerated in Hong Kong’s Personal Data (Privacy) Ordinance and relevant cases published by Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD).

Registration of onshore guarantees for offshore indebtedness

Onshore guarantees for offshore indebtedness – commonly known as Nei Bao Wai Dai (NBWD) – refers to cross-border arrangements where a guarantee is provided by an onshore guarantor for a debt owed by an offshore debtor to an offshore creditor. Non-bank institutions and individuals in China involved in NBWD arrangements are required to complete statutory registration with the competent local counterpart of the State Administration of Foreign Exchange (SAFE) within the prescribed time period; otherwise performance of the guarantee contract in question may not be achieved due to the potential failure of remittance of funds, even with a court judgment or arbitral award. This article offers some views on commonly encountered issues.

New Opportunity in China Fund Management Market：Door for Foreign Fund Managers to enter China Market is Now Open

Compliance issues for gifts that advertise

Advertising gifts mean items printed with brand name, logo or slogan that operators give to counterparties or the public in business dealings with the view to increasing awareness or market share. Legal matters involved in advertising gifts include, but are not limited to, anti-business bribery and other competition issues.

Exploring compliant methods of bypassing preemptive right

The term “shareholder right of first refusal” – or preemptive right – means that when a shareholder of a limited liability company wishes to transfer any of his equity to a third party, the other shareholders have, all things being equal, the preemptive right to purchase such equity. The main legal basis for this is article 71 of the Company Law (amended in 2013).