Accountants’ confidence raised in 2010
Chinese accountants were more confident about the industry in 2010 than they had been one year ago, according to the 5th annual Accounting Industry Confidence Index survey conducted by the ESNAI (Shanghai National Accounting Institute, http://www.esnai.com). For three years in a row, respondents showed an increase in satisfaction about the overall situation of the industry. However, their expectation of 2011 dropped somewhat. Social reputation of accounting industry in 2010 was rated generally good, while over 50% of respondents had an optimistic view for the 2011 prospect regarding this area. Professional/practice risk was found higher in 2010, and most respondents expected there would be a further increase over the course of next year. The confidence level of landing a decent position by job-hopping among respondents had been increasing for the recent three years, and particularly, 2010 saw a significant improvement from 2009, based on data collected.
Accounting and auditing rules for health sector published
The Ministry of Finance and the Ministry of Health and other relevant authorities jointly issued the revised Financial Regulations for Hospitals, the revised Accounting Rules for Hospitals, the newly-developed Financial Regulations for Primary Level Medical and Health Care Institutions and the newly-developed Accounting Rules for Primary Level Medical and Health Care Institutions. The Chinese Institute of Certified Public Accountants issued a corresponding Guidance on Auditing of Financial Statements of Hospitals. The two revised rules are applied on a pilot phase to public hospitals located in cities subject to health care system reform from July 1, 2011. From January 1, 2012, they are applied nationally. The two newly-developed rules and the audit guidance are applied nationally from July 1, 2011.
Certain taxation rules revised
The State Council amended the Provisional Regulations of the People's Republic of China on City Maintenance and Construction Tax, replacing “Product Tax” contained in the second, third and fifth provision of the regulations with “Consumer Tax”. The State Council also amended the Interim Provisions on the Collection of Educational Surcharges, replacing “Product Tax” contained in the second and sixth provision of the provisions with “Consumer Tax”.
Income tax rules for high techs clarified
The State Administration of Taxation issued a document clarifying that high technology enterprises should submit the high tech status review application to competent taxation authorities within three months before the expiration date of the status. Before the approval of the application, i.e. in the time period of between submitting application and the expiration date, these enterprises should prepay their business income tax at an application rate of 15%. This practice is taking effective from February 1, 2011.
Property tax launched in Shanghai
Shanghai Municipal Government announced on January 27 that it will levy the property taxes from January 28. Second-home buyers with Shanghai residency and non-local residents will pay a tax of 0.6 percent. If values of homes are less than double that of average housing prices, buyers need only pay 0.4 percent. The taxation prices are based on actual transaction prices with a 30 percent discount.
