(FSQ [1989] No.311989 issued by Ministry of Finance, Ministry of Economy and Trade and Bank of China on March 5, 2009)
Chapter I General Principles
Article 1 These Interim Measures are formulated in order to strengthen the financial management of overseas trade, finance and insurance enterprises, correctly handle the relationship between the state and overseas enterprises, Chinese employees and domestic investment units, help mobilize the enthusiasm of overseas employees and domestic investment units, improve the economic benefits of overseas investment in China and promote the development of overseas enterprises.
Article 2 These Interim Measures shall apply to the sole proprietorship, joint venture and cooperative enterprises in trade, finance and insurance (including production) established outside People's Republic of China (PRC) by the following units (hereinafter referred to as "overseas enterprises"):
(1) Ministry of Economy and Trade and its subordinate foreign trade companies;
(two) the industry and trade company owned by the competent department of industry in the State Council;
(3) China Bank, China International Trust and Investment Corporation and other financial institutions and their domestic branches;
(4) China People's Insurance Company and its domestic branches;
(five) the economic and trade departments of the people's governments of all provinces, autonomous regions, municipalities directly under the central government and cities under separate state planning, and the foreign trade companies and industry and trade companies affiliated to their industrial departments.
The above units are collectively referred to as "domestic investment units".
Article 3 An overseas enterprise shall conduct business activities, pay taxes, conduct accounting and financial management in accordance with the laws and regulations of the host country (or region, the same below).
Article 4 Overseas enterprises shall actively carry out production and business activities and economic and trade activities, and strive to complete various tasks entrusted by the state. Its financial activities should accept the guidance and management of domestic investment units and their competent departments, financial departments and state-owned assets management departments, submit accounting statements on schedule, and timely turn over foreign exchange profits to the state.
Chapter II Management of State Funds
Article 5 Overseas enterprises may independently use the funds allocated by the state in accordance with the relevant provisions of domestic investment units, but they must ensure the safety of state funds and strive to preserve and increase the value of state property.
Article 6 When a domestic investment entity establishes a sole proprietorship, joint venture or cooperative enterprise abroad, it must determine the person in charge of state-owned assets and go through the necessary formalities. The person in charge of state-owned assets of a wholly-owned enterprise is generally the main person in charge of the enterprise; The person in charge of state-owned assets of a joint venture or cooperative enterprise is generally our main person in charge. When the person in charge of state-owned assets changes, it is necessary to determine the successor person in charge of state-owned assets and handle the handover procedures of state-owned assets.
Article 7 The state funds of overseas enterprises include:
(a) all funds allocated by domestic investment units to overseas enterprises (including in kind);
(2) After-tax profits of wholly foreign-owned enterprises and all after-tax profits of joint ventures and cooperative enterprises;
(3) Assets acquired by a wholly foreign-owned enterprise through leasing and assets acquired by a joint venture or cooperative enterprise through leasing shall be owned by us;
(four) the assets formed by the donation and sponsorship of a wholly foreign-owned enterprise, and the assets formed by a joint venture or cooperative enterprise through donation and sponsorship belong to us;
(five) other funds that should be owned by the state.
Article 8 The increase or decrease of state funds by overseas enterprises must be recorded in detail. No unit or individual has the right to reduce state funds without the approval of the superior competent department of the domestic investment unit and the financial department at the same level.
Article 9 When an overseas enterprise declares cancellation, merger, sale or bankruptcy for various reasons, it shall promptly clear up its property, creditor's rights and debts, and report to the domestic investment unit the detailed financial situation audited by the local accounting institution and its handling opinions. When a sole proprietorship enterprise announces its cancellation, merger, sale or bankruptcy, it must be approved by the domestic investment unit. Funds that should be repatriated after cancellation, sale or bankruptcy must be repatriated in time, and may not be deposited in foreign banks under any name or excuse.
Article 10 The reinvestment of overseas enterprises shall be approved by domestic investment units or handled according to the prescribed examination and approval authority. The reinvestment of overseas enterprises should be clearly reflected in the annual accounting statements. Wholly foreign-owned enterprises use state funds to invest in the host country, and the person in charge of state-owned assets remains unchanged; Wholly-owned enterprises use state funds to invest outside the host country, and joint ventures and cooperative enterprises use state funds to invest outside the host country. Domestic investment units need to designate the person in charge of state-owned assets of newly-invested enterprises.
Article 11 The following boundaries shall be strictly distinguished in the capital transaction relationship between overseas enterprises and domestic investment units:
(a) the boundaries between funds and loans allocated by domestic investment units to overseas enterprises;
(two) the boundary between the profits paid by overseas enterprises to domestic investment units and the current account.
Chapter III Wage Accounting and Management
Article 12 The production and operation costs (expenses) and other income tax items of overseas enterprises shall be accounted for according to the laws of the host country, and the wages and bonuses of enterprise employees (including China employees) shall be included in the costs (expenses) according to law. Those that should be included in the production and operation costs (expenses) and charged before income tax shall not be charged in the profits after income tax. The "management expenses" of domestic investment units in managing and serving overseas enterprises should also enter the production and operation costs if permitted by the laws of the host country.
Thirteenth wages and bonuses actually paid by overseas enterprises to domestic employees shall be implemented in accordance with the relevant provisions of China.
Article 14 The wages and expenses of employees in China and the wages and bonuses actually paid to employees in China in the production and operation costs (expenses) of overseas enterprises shall be accounted separately, and the actual amount paid each year shall not be greater than the amount of production and operation costs (expenses) in that year, but shall not be less than the balance of production and operation costs (expenses) in that year. After deducting the collective welfare and other expenses according to the current regulations, all of them will be included in the total profit and loss of overseas enterprises this year.
Chapter IV Profit Distribution Management
Article 15 All businesses (including futures trading business) of overseas enterprises shall be accounted for in a unified way and be responsible for their own profits and losses. Overseas enterprises charge agency fees for the business handled by domestic investment units or other units. Total profits of enterprises registered abroad.
Article 16 Within five years from the date of establishment of an overseas enterprise, the profits of a sole proprietorship enterprise after paying various taxes and our share of the after-tax profits of a joint venture or cooperative enterprise shall all be reserved for domestic investment units. Five years later, 20% of all after-tax profits of sole proprietorship enterprises and 20% of after-tax profits of joint ventures and cooperative enterprises will be remitted back to domestic investment units and turned over to the finance at the same level; 70% of the profits of sole proprietorship enterprises and 70% of the profits of joint ventures and cooperative enterprises are reserved for our domestic investment units (whether the domestic investment units are reserved for overseas sole proprietorship enterprises in whole or in part is decided by the domestic investment units) for the production development funds and capital increase of overseas enterprises; The rest 10% is reserved for domestic investment units and competent departments to adjust and use, and the specific use is reported to the finance department at the same level for determination.
Measures for the distribution of after-tax profits of overseas enterprises, if otherwise stipulated in the State Council, shall be handled in accordance with the provisions of the State Council.
Article 17 Domestic-funded units shall verify the profit tasks of wholly foreign-owned enterprises every year, and stipulate the profit tasks of our responsible persons in joint ventures and cooperative enterprises. Those who complete the annual profit task can be calculated according to the monthly standard salary of similar personnel in the embassy of China in the host country and the number of employees in China, and can extract the bonus of 1 month from the retained profits of overseas enterprises extracted by domestic investment units; If the specified profit exceeds 10%, a bonus of 1 month may be added. Bonuses will be distributed to China employees of overseas enterprises according to the principle of distribution according to work, more work and more pay.
Article 18 The management and retention of foreign exchange profits of overseas enterprises shall be handled in accordance with relevant state regulations.
Article 19 Losses incurred by overseas enterprises shall be made up in accordance with the laws of the host country, and domestic investment units shall not subsidize them. In case of temporary difficulties, domestic investment units can borrow money to give support and return it on schedule.
Chapter V Financial Management System and Accounting Statements
Twentieth domestic investment units to invest in overseas enterprises, should send accountants. Small enterprises should also appoint part-time accountants. Wholly-owned enterprises are also responsible for setting up accounting institutions by domestic employees.
Article 21 An overseas enterprise shall, in accordance with the laws and domestic requirements of the host country, establish a strict financial management system, complete financial expenditure procedures, complete accounting vouchers and account books, and properly keep them.
Article 22 All financial transactions and cash payments of a foreign-capital enterprise must be jointly signed, and all accounting vouchers must be signed by the person in charge of the enterprise or its authorized person in charge. Overseas joint ventures and cooperative enterprises should also implement the joint signing system of our capital payment. In the "joint signing", husband and wife and immediate family members may not jointly sign. Individual enterprises need to implement "joint signing", which needs to be approved by domestic investment units and reported to the competent authorities for the record.
Article 23 An overseas enterprise shall, in the name of the enterprise, open an account in the local branch of China Bank and handle banking business such as current account settlement and cash payment. If there is no bank branch in China, you should open an account in a foreign bank with good local reputation and business dealings with China Bank. If an overseas enterprise opens an account in a bank in the name of an individual, it must be formally approved by the domestic investment unit.
Article 24 The financial affairs of overseas enterprises shall be managed by the accounting institutions of domestic investment units, and the accounting institutions of domestic competent departments shall be responsible for the financial affairs of overseas enterprises of domestic investment units, and shall link up with the financial departments at the same level to remit profits and prepare accounting statements.
Article 25 An overseas enterprise shall, after the end of the fiscal year, prepare accounting statements and submit them to domestic investment units according to the actual assets, liabilities, profits and losses of the enterprise, and at the same time, attach a profit distribution statement, a statement of changes in state funds and a statement of salary balance of employees in China. The annual accounting statements and schedules of a sole proprietorship enterprise and the accounting statements and schedules of a joint venture or cooperative enterprise shall be valid only after being audited by the domestic investment unit and reported to the superior competent department for review and summary, and then reported to the finance department at the same level for approval.
Article 26 The competent department of the domestic investment unit of an overseas enterprise shall submit the summary accounting statements and schedules of the overseas enterprise in the previous year to the finance department at the same level before June 30 each year. The profits due were also paid at the same time. The time for domestic investment units to submit accounting statements to the competent authorities, the time for overseas enterprises to submit accounting statements to domestic investment units, and the time for turning over profits shall be stipulated by the competent authorities and domestic investment units respectively.
Twenty-seventh domestic investment units, competent departments and financial departments should strengthen the leadership of the financial management of overseas enterprises, and timely inspection and supervision. Problems in violation of state regulations should be corrected in time and dealt with seriously.
Chapter VI Supplementary Provisions
Article 28 These Interim Measures shall apply to enterprises invested by investment units in Hong Kong and Macao listed in Article 2 of these Interim Measures.
Article 29 The competent department of the State Council and the people's governments of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning may formulate detailed implementation rules according to these Interim Measures and report them to the Ministry of Finance for the record. Domestic investment units with a large number of individual overseas enterprises may, with the consent of the Ministry of Finance, formulate separate implementation rules and report them to the Ministry of Finance for the record.
Thirtieth past provisions conflict with these Interim Measures, these Interim Measures shall prevail.
Article 31 These Interim Measures shall be implemented as of June 1989+ 10/0/day.