For the purposes of safeguarding the legitimate rights and interests of the owner of state-owned assets, strengthening the administration on the levy of income earned from state-owned assets, these Procedures are formulated on the basis of the provisions of the“Corporate Law of the People’s Republic of China”, the“Interim Provisions on the Supervision and Administration of State-owned Assets in Enterprises”promulgated by the State Council, and other laws and regulations, and in the light of the actual circumstances of this Municipality.
These Procedures shall apply to the administration of the income earned from state-owned assets of the city-affiliated enterprises and institutions that possess, use or operate the state-owned assets.
The city-affiliated enterprises and institutions include the enterprises for which the Municipal People’s Government have authorized the Shanghai Municipal State-owned Assets Supervision and Administration Commission (hereinafter referred to as SMSASAC) to perform the duties of the capital-provider, and whose capital is provided by the SMSASAC and which is supervised by the SMSASAC, and the institutions whose capital is provided by the SMSASAC and which is supervised by the SMSASAC on entrustment, and other enterprises and institutions that are directly administrated by the Municipal People’s Government or its departments or organs other than the above-mentioned two kinds of enterprises and institutions (hereinafter jointly referred to as enterprises).
The income earned from state-owned assets mentioned in these Procedures refers to various kinds of incomes and profits to be legally earned by the SMSASAC acting in the capacity of a capital-provider. It includes:
1. The after-tax net profits of the enterprises to be distributed in accordance with the stock ratio and the allocation plan;
2. The net profit earned from the transfer of the corporate stock held;
3. The net income earned from the liquidation of enterprises in accordance with the stock ratio;
4. Other incomes and profits to be earned in accordance with the provisions of laws and regulations.
The SMSASAC takes charge of the levy of income earned from state-owned assets and relevant administration.
The after-tax net corporate profit shall take the audited financial accounting report as the criterion, and it shall, after making up the annul losses of the previous year, and drawing the legal common reserve funds, be levied according to the following situations:
1．The solely state-owned enterprises shall carry out the levy in accordance with the ratio and time examined and ratified by the SMSASAC;
2. The state-holding enterprises or enterprises with the State as a shareholder shall carry out the levy in accordance with the allocation ratio and allocation time determined by the general meeting of shareholders or similar authorities.
The income earned from the transfer of corporate stock shall, after deducting relevant costs and expenses, be totally levied in accordance with the time stipulated in the transferring contract of stocks.
In case the State has other provisions on the transfer of income earned from the state-owned stocks of listed enterprises both from home and abroad, such provisions shall prevail.
The net liquidation income earned from the liquidation of enterprises in accordance with law shall be levied in accordance with the ratio of the state-owned shares and the time prescribed by the liquidation organs.
Other incomes earned from state-owned assets shall be levied in accordance with relevant provisions.
The mode of levying the after-tax net profit of the enterprises shall be examined and ratified by the SMSASAC.
In case an enterprise suffers losses due to heavy natural calamity or other force majeure, the income earned from state-owned assets to be levied may be properly reduced or remitted upon the approval of the SMSASAC.
The income earned from state-owned assets that is approved to be reduced or remitted shall be added to the state-owned capital of the enterprise.
The SMSASAC shall set up a special account to carry out the administration of the income earned from state-owned assets.
The income earned from state-owned assets shall be mainly used towards the development of state-owned economy, including the work of“reinvigorating the city through science and education”and the adjustment of industrial structure. Meanwhile, part of the capitals shall be arranged to cover the necessary expenditures needed in conducting the reform of state-owned assets and state-owned enterprises, and the supervision on state-owned assets, and responding to emergencies and other necessary expenditures as determined by the Municipal People’s Government.
The representatives of the state-owned property rights in enterprises shall actively cooperate with the SMSASAC in doing well the work of levying the income earned form state-owned assets.
The SMSASAC regulates the situation of income earned from state-owned assets and accept the examination and supervision of the Municipal People’s Government.
The acts of being in arrears or holding back the income earned from state-owned assets by any enterprises, institutions or individual persons whose income earned from state-owned assets shall be levied in accordance with these Procedures, shall be handled in accordance with relevant provisions.
The specific provisions on the implementation of these Procedures shall be formulated by the SMSASAC.
The administration of the income earned from state-owned assets in districts and counties shall be conducted by reference to these Procedures.
The SMSASAC shall be responsible for interpreting these Procedures.
These Procedures shall become effective on the date of promulgation.
Shanghai Municipal State-owned AssetsSupervision and Administration Commission
October 20, 2005