Circular of the State Administration of Taxation on Explanation on Issues concerning Whether the Representative Offices of Foreign Enterprise Constitute Permanent Establishments Specified in Tax Treaty

Circular of the State Administration of Taxation on Explanation on Issues concerning Whether the Representative Offices of Foreign Enterprise Constitute Permanent Establishments Specified in Tax Treaty

Guo Shui Han [1999] No.607

September 13, 1999

Recently, we have received inquires from some local areas about how to determine the tax duty of Non-Resident Individuals working in representative offices of foreign enterprises and whether the salary of which constitute burden of the permanent establishments specified in the Tax Treaty and Arrangement, how to determine whether a representative office of foreign enterprises constitutes the "permanent establishment" as specified in tax treaty and whether the representative offices stipulated by relevant taxation laws that free or exempted from tax are not "permanent establishments" during implementation of the Treaty of the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Arrangement between the Mainland of China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation with Respect to Taxes on Income (hereinafter referred to as the "Tax Treaty and Arrangement").
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