Recently, the Ministry of Finance ("MOF") and the State Administration of Taxation ("SAT") have jointly distributed the Circular on the Temporary Exemption from Banking Regulatory Charges and Insurance Regulatory Charges (the "Circular"), effective from July 1, 2017 to December 31, 2020.
The Circular stipulates that: 1. Banking regulatory charges (including regulatory charges for institutions and regulatory charges for business) and insurance regulatory charges (including regulatory charges for institutions and regulatory charges for business) will be exempted; 2. Relevant funds needed by the China Banking Regulatory Commission ("CBRC") and the China Insurance Regulatory Commission ("CIRC") for performing their regulatory duties and functions according to the law will still be guaranteed with funds sourced from the financial budget of the Central Government, after the above-mentioned administrative and institutional fees have been exempted; 3. The CBRC and the CIRC shall, prior to August 31, 2017, complete the final settlement and levy of banking regulatory charges and insurance regulatory charges payable for the previous years. The overdue amount of both types of administrative and institutional fees specified herein shall be levied in full, and turned over to the State Treasury in full through certain channels designated by the MOF.