State Administration of Taxation, Measures for Administration of the Levy of Income Tax on Non-tax-resident Enterprises by Assessment

Issued: February 20 2010
Effective: as of date of issuance

Main contents: A tax authority may assess a non-tax-resident enterprise's profit rate based on the following rates:

(1) for enterprises engaging in project contracting, design and consulting services, a profit rate of 15% to 30%;

(2) for enterprises providing management services, a profit rate of 30% to 50%; and

(3) for enterprises providing other services or engaging in business activities other than the provision of services, a profit rate of not less than 15%.

Related legislation: PRC Enterprise Income Tax Law , Mar 16 2007, CLP 2007 No.3 p.21; and PRC Law on the Administration of the Levy and Collection of Taxes (Revised in April 2001), Apr 28 2001, CLP 2001 No.5 p.12 & CLP 1995 No.3 p.12