Re-evaluating Tax Assessments for Representative Offices
September 02, 2003 | BY
clpstaff &clp articlesUnderstanding tax assessment is among the most important issues for foreign-invested companies working in China. The state tax bureau has recently revamped the rules for the tax liability of foreign companies' representative offices in China.
By Ivan Chan, Ernst & Young, Beijing
The State Administration of Taxation (SAT) issued the Tax Administration Issues Relevant to Resident Representative Offices of Foreign Enterprises Circular (关于外国企业常驻代表机构有关税收管理问题的通知)[Guo Shui Fa (2003) No. 28, the 2003 Circular] on March 12 2003 to further define and clarify how and to what extent a representative office established in China by a foreign company will be taxed. The tax circular came into effect on July 1 2003.
The 2003 Circular shows the SAT's willingness to amend tax rules in response to market liberalization and in view of the changing regulatory environment as a result of China's accession to the World Trade Organization (WTO).
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now