Legal News

Previously, due to the “General Rules for Loans” and relevant regulations, the validity of the private lending, especially the private lending between enterprises, is questionable. With the development of the needs of capital flow, in order to regulate the private lending, the Supreme Court has released the Regulations recently. The Regulations has comprehensively prescribed the aspects of private lending, such as how to define a private lending, the validity of the relevant contracts, the liabilities of the P2P platform, interest rate and so on. The highlights include: To clarify the legal liabilities of P2P platform The provider of a P2P…

Recently, SAT has released “Announcement”, compared with “Circular of the State Administration of Taxation on Printing and Distributing the Implementing Measures for Special Tax Adjustments (for Trial Implementation)” (Guo Shui Fa [2009] No.2), Announcement has discentralized the approval right and strengthen the afterwards management on the management of the cost allocation agreements. The main contents as follows: Requirement for the record-filing of the cost allocation agreements The cost allocation agreement shall be filed to the local tax authorities instead of SAT. The annual report of related party transactions shall be submitted while submitting the annual income tax report. The management…

The Supreme People’s Court has issued “Rules for the Implementation of the Provisions on Case Guidance” (FA [2015] No. 130, hereinafter referred to “No. 130”) on 13th May 2015. No. 130 is the symbol that the guiding cases of the Supreme People’s Court become the “quasi-precedent”. The main content of No. 130 includes as follows: Key points of judgement of the guiding cases shall be applied. According to Article 9 of “No.130”, while a court is hearing a case, which is similar as the guiding cases on the basic facts and the applied laws, the court shall make the judgement…

The Supreme People’s Court recently issued Provisions, in which it has prescribed the procedures for objection and reconsideration, in addition, it has also clarify some rules on dealing with those relevant practical disputes. The main content includes: Procedures To set the deadline for acceptance: in principle, enforcement objection cases shall be accepted within three days; To avoid postponing an enforcement by keeping submitting objections for different reasons: grounds for enforcement objection shall be submitted at one time; To provide a judicial relief approach for those who are restricted from departing China: persons restricted from departing China shall have the right…

Civil retrial shall be petitioned by 3 methods, the higher level court retries the case; the direct retrial; and the remand for retrial. According to the “Interpretation of the Supreme People’s Court on Several Issues Concerning the Application of the Trial Supervision Procedure of the Civil Procedure” promulgated in 2008, the higher level court retry the case shall be the basic principle. However, in the judicial practice, the direct retrial has covered around 60%, and the percentage of the remand for retrial becomes higher and higher, on the contrary, the percentage for modifying the original judgements tends to be lower,…

In order to correspond with the current Patent Law and its judicial interpretation, Decision has been made, which futher explains the patent evaluation report, the principle on defining an infringement, the amount of compensation and etc. The key points of Decision are as follows: The implementation of the patent evaluation report as stipulated in the Patent Law The plaintiff may submit a search report issued by the patent administrative authority of the State Council for a patent infringement lawsuit based on utility model patent filed before October 1, 2009. The plaintiff may submit a patentability assessment report issued by the…

SAT has released “GAAR” recently, which has further specified the relevant rules on the general anti-avoidance, based on the Corporate Incoming Law and its Detailed Implementation Rules, and Implementation Measures on Special Tax Adjustments (Trial). Then main content includes: Application scope Arrangements not involving cross-border transaction or payment; and Illegal tax behaviors potentially related to avoiding tax payments, avoiding paying taxes due for recovery claim from tax authorities, cheating on taxes payable, refusing to pay taxes and provide forged tax invoices. Major features of a “tax avoidance arrangement”: Obtaining a tax benefit is the sole purpose, or the main purpose;…

In order to relieve the financial pressure for the enterprises during the economic restructuring and self-development period, SAT has released the Announcement recently, which will be applied in or after 2014. The main contents include: The application scope has been clarified The applicable industries include biopharmaceutical manufacturing, specialized equipment manufacturing, manufacturing of railway, vessel, aerospace and other transportation equipment, manufacturing of computer, communication equipment and other electronic equipment, manufacturing of instruments and meters and information transmission, software and information technology services. The applicable enterprises which the main business income is above 50% (exclude 50%) of the whole income in the…

Decision of the Standing Committee of the National People’s Congress on Establishing Intellectual Property Right Courts in Beijing, Shanghai and Guangzhou (“Decision”) has been adopted at the 10th session of the Standing Committee of the 12th National People’s Congress on August 31, 2014, Intellectual property right courts (“IPR courts”) will be established in Beijing, Shanghai and Guangzhou. The level of IPR courts is equivalent to the intermediate court. Within 3 years after IPR courts are established, cross-region jurisdiction may be exercised over the provinces in which the parties are located. The IPR courts shall hear the cases of appeal against…

In order to enhance the judicial protection to personal information, the Supreme People’s Court has issued “Provisions”, which clarifies the relevant issues related to the cases arising from the infringement against the personal interests and rights, such as name, title, reputation and etc.. The highlights include: Raise the liabilities of the network service providers On the identification of the defendant. It is difficult to confirm the identity of the infringer who has released the infringement information, “Provisions” provides that the network service provider (such as the owner of a website) can be applied as an independent defendant. On the determination…