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

This premium content is reserved for
China Law & Practice Subscribers.

  • 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
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]