State Administration of Taxation, Circular on Issues Relevant to the Implementation of Articles on Royalties of Tax Agreements

国家税务总局关于执行税收协定特许权使用费条款有关问题的通知

December 08, 2009 | BY

clpstaff &clp articles &

Three types of items not treated as royalties.

Clp Reference: 3230/09.09.14 Promulgated: 2009-09-14 Effective: 2009-10-01

Issued: September 14 2009

Effective: October 1 2009

Main contents: The following amounts or remuneration shall not be treated as royalties but rather as income derived from service activities:

(1) remuneration for after-sales services under a straightforward merchandise trading arrangement;

(2) remuneration derived by the seller from the provision of services to the buyer during the product warranty period;

(3) the amounts derived from the provision of relevant services by an organisation or individual dedicated to the provision of engineering, management, consulting and other such professional services; and

(4) other similar remuneration as specified by the State Administration of Taxation.

clp reference:3230/09.09.14prc reference:国税函 [2009] 507号promulgated:2009-09-14effective:2009-10-01

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