INTERIM PROVISIONS FOR THE
DURATION OF CHINESE-FOREIGN EQUITY JOINT VENTURES
(Approved by the State
Council on September 30, 1990 and promulgated by the
Ministry of Foreign Economic Relations and Trade on
October 22, 1990)
Article 1 These Provisions
are formulated in accordance with the Article 12 of
the Law of the People's Republic of China on Chinese-Foreign
Equity Joint Ventures( amended by the Third Session
of the Seventh National People's Congress on April
4, 1990).
Article 2 The parties
to a Chinese-foreign equity joint venture(hereinafter
referred to as a "joint venture") may or
may not stipulate the duration in the contract of
the joint venture which falls within the category
of the investment projects encouraged and permitted
by the State, unless the Article 3 of these Provisions
otherwise stipulates.
Article 3 The parties
to a joint venture shall specify the duration in the
contract of the joint venture in accordance with the
relevant laws and regulations of the State provided
that the joint venture is engaged in any of the following
lines of trade or operates in the following circumstances:
(1) Service trades, such
as hotel, apartment or office buildings, entertainment,
catering, taxi, color developing and printing, maintenance,
consulations;
(2) Land development,
and operation and management of real estate;
(3) Exploration and exploitation
of resources;
(4) Investment projects
restricted by the State;
(5) Others for which
the duration is required to be included in the contract
by the laws or regulations of the State.
Article 4 A joint venture
contract in which the parties do not specify the duration
shall be examined and approved pursuant to the authorization
and procedures of examination and approval stipulated
by the State. And the examination and approval authorities
shall report this to the Ministry of Foreign Economic
Relations and Trade for the record within 30 days
after the approval is granted except for those approved
by the Ministry of Foreign Economic Relations and
Trade itself.
Article 5 A joint venture
to which the parties do not provide the duration in
the joint venture contract may, subject to the approval
of a taxation authority, enjoy the preferential treatment
of tax reduction or exemption according to the tax
laws of the State. If the actual operation period
of such joint venture is shorter than the time limit
for enjoying the preferential treatment of tax set
by the State, the joint venture, according to law,
shall make up for the amount of tax which has been
reduced or exempted already.
Article 6 A joint venture
approved and established before the implementation
of these Provisions may continue its operation under
the provisions of duration in the approved contract.
Except for the joint ventures stipulated in Article
3 of these Provisions, such joint venture may alter
its fixed duration to non-duration agreed upon by
the parties and the parties shall conclude the amendment
to the joint venture contract and make an application
with reasons to the original examination and approval
authority for examination.
The original examination
and approval authority shall decide to grant an approval
or disapproval of the alteration within 90 days after
the receipt of the above mentioned relevant documents.
Upon approval, the joint venture shall go through
the procedures of filing according to Article 4 of
these Provisions.
Article 7 These Provisions
shall be implemented from the date of its promulgation.
