Beijing Municipal Office of the State Administration of Taxation, Matters Relevant to Adjusting the Collection and Administration of Enterprise Income Tax of Resident Representative Offices of Foreign Enterprises of the Municipality Notice

Issued: June 18 2003

Main contents: Apart from repeating the provisions of the Tax Administration Issues Relevant to Resident Representative Offices of Foreign Enterprises Circular, the Notice stipulates that representative offices engaging in activities other than consultancy (such as law, taxation, accounting and auditing) and services (such as agency and trading) shall file tax returns and pay tax to the competent tax authority within 15 days after the end of the quarter during which there is actual operating revenue (Item One(3)). Revenue of representative offices that is derived from engaging in export trading agency businesses for domestic goods for the account of domestic enterprises shall be exempted from tax (Item One(4)). Representative offices that merely engage in such activities in China as market analysis, provision of business information and performance of liaison functions for production of products and sale of such self-produced products of their head company shall be exempted from tax (Item One(5)). The Notice also states that the previous tax exemption approval of representative offices by the State Administration of Taxation shall remain effective.
Related legislation: Tax Administration Issues Relevant to Resident Representative Offices of Foreign Enterprises Circular, Mar 12 2003, CLP 2003 No.6 p48