Chapter 12 Taxes, Finance and Audit
Article 32
The cooperative venture company shall pay taxes in accordance with the
provisions of Chinese laws and other relative regulations.
Article 33
Staff members and workers of the cooperative venture company shall pay
individual income tax according to the Individual Income Tax Law of the
People’s Republic of China.
Article 34
The fiscal year of the joint venture company shall be from January 1
to December 31. All vouchers, receipts, statistic statements and reports
shall be written in Chinese.
(Note: A foreign language can be used concurrently with mutual
consent).
Article 35
Financial checking and examination of the cooperative venture company
shall be conducted by an auditor registered in China and reports shall be
submitted to the board of directors and the general manager.
In case Party B considers it necessary to employ a foreign auditor
registered in another country to undertake annual financial checking and
examination, Party A shall give its consent. All the expenses thereof
shall be borne by Party B.
Article 36
In the first three months of each fiscal year, the manager shall
prepare the previous year’s balance sheet, profit and loss statement and
proposal regarding the disposal of profits, and submit them to the board
of directors for examination and approval.
Chapter 13 Duration of the Cooperative Venture
Article 37
The duration of the cooperative venture company is______ years. The
establishment date of the joint venture company shall be the date on which
the business license of the cooperative venture company is issued.
An application for the extension of the duration, proposed by one
party and unanimously approved by the board of directors, shall be
submitted to the Ministry of Foreign Trade and Economic Cooperation (or
the examination and approval authority entrusted by it) six months prior
to the expiry date of the joint venture.
Chapter 14 The Disposal of Assets after the Expiration of the Duration
Article 38
Upon the expiration of the duration, the assets shall belong to Party
A.
Chapter 15 Insurance
Article 39
Insurance policies of the joint venture company on various kinds of
risks shall be underwritten with the People’s Republic of China. Types,
Article 32
The cooperative venture company shall pay taxes in accordance with the
provisions of Chinese laws and other relative regulations.
Article 33
Staff members and workers of the cooperative venture company shall pay
individual income tax according to the Individual Income Tax Law of the
People’s Republic of China.
Article 34
The fiscal year of the joint venture company shall be from January 1
to December 31. All vouchers, receipts, statistic statements and reports
shall be written in Chinese.
(Note: A foreign language can be used concurrently with mutual
consent).
Article 35
Financial checking and examination of the cooperative venture company
shall be conducted by an auditor registered in China and reports shall be
submitted to the board of directors and the general manager.
In case Party B considers it necessary to employ a foreign auditor
registered in another country to undertake annual financial checking and
examination, Party A shall give its consent. All the expenses thereof
shall be borne by Party B.
Article 36
In the first three months of each fiscal year, the manager shall
prepare the previous year’s balance sheet, profit and loss statement and
proposal regarding the disposal of profits, and submit them to the board
of directors for examination and approval.
Chapter 13 Duration of the Cooperative Venture
Article 37
The duration of the cooperative venture company is______ years. The
establishment date of the joint venture company shall be the date on which
the business license of the cooperative venture company is issued.
An application for the extension of the duration, proposed by one
party and unanimously approved by the board of directors, shall be
submitted to the Ministry of Foreign Trade and Economic Cooperation (or
the examination and approval authority entrusted by it) six months prior
to the expiry date of the joint venture.
Chapter 14 The Disposal of Assets after the Expiration of the Duration
Article 38
Upon the expiration of the duration, the assets shall belong to Party
A.
Chapter 15 Insurance
Article 39
Insurance policies of the joint venture company on various kinds of
risks shall be underwritten with the People’s Republic of China. Types,