The Announcement clarifies six income tax issues of non-tax-resident enterprise including: issue of withholding enterprise income tax on payable but unpaid income and issue of levy of tax on income derived from the assignment of land use rights.
The Announcement allows tax exemption, setoff and refund of tax of integrated circuit design, software design and animation design enterprises to be extended to entrustment of processing.
A recent notice provides clarity on what activities of a Permanent Establishment are subject to taxation. This should prompt foreign businesses to re-evaluate their set-up structure