NEW REGULATIONS ON TAXATION OF FOREIGN FINANCIAL INSTITUTIONS ENGAGED IN RENMINBI BUSINESS

With the deepening of China’s reform and further openingto the outside world, and with the rapid expansion of China’s bank-ing business, foreign financial institutions shall be allowed to en-gage in Renminbi business as an experiment with the approval ofthe State Council in some areas of China as of 1997.With a view to standardizing taxation and executing a uni-fled tax policy, and promoting the fair and reasonable competi-tion between domestic and foreign financial institutions, the