Circular of the State Administration of Taxation on Issues concerning the Income Tax Liability on the Remunerations Received by Individuals without Domiciles within the Territory of China
Circular of the State Administration of Taxation on Issues concerning the Income Tax Liability on the Remunerations Received by Individuals without Domiciles within the Territory of China
Circular of the State Administration of Taxation on Issues concerning the Income Tax Liability on the Remunerations Received by Individuals without Domiciles within the Territory of China
Guo Shui Fa [1994] No.148
June 30, 1994
According to the Income Tax Law of People's Republic of China (the "Tax Law"), the implementation rules thereof (the "Implementation Rules") and the Double Taxation Agreement concluded between China and other states (the "Taxation Agreement"), it is hereby clarified, the relevant matters concerning remunerations earned by individuals without residence within the territory of China for their employment in companies, enterprises and economic organizations ("Enterprise within the terriitory of China") or agencies, offices established by foreign enterprises within the terriitory of China as well as standing institutions defined in the Taxation Agreement ("Institution within the terriitory of China") as follows:
I. Determination of the source of remunerations
According to Item 1 of Article 5 under the Implementation Rules, remunerations earned within the terriitory of China shall mean remunerations paid to individuals for their work within the terriitory of China. Remunerations earned by individuals for their work within the terriitory of China shall be deemed as incomes from China whether paid by overseas enterprises or sole proprietorship employers; Remunerations earned by individuals for their work overseas shall be deemed as incomes from overseas sources whether it is paid by overseas enterprises or sole proprietorship employers.
II. Ways to determine income tax payable by individuals who do not have residence within the terriitory of China and have stayed within the terriitory of China for no more than 90 days during a tax year or for no more than 183 days during the period specified in the Taxation Agreement
According to Item 2 of Article 1 under the Tax Law, Article 7 of the Implementation Rules and relevant provisions of the Taxation Agreement, remunerations paid by overseas employers to their individuals within the terriitory of China who do not have residence Chinese residence and have stayed within the terriitory of China for no more than 90 days during a tax year or for no more than 183 days during the period specified in the Taxation Agreement may be exempted from taxation, provided that such remunerations is not born by the employer's Institution within the terriitory of China.
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Guo Shui Fa [1994] No.148
June 30, 1994
According to the Income Tax Law of People's Republic of China (the "Tax Law"), the implementation rules thereof (the "Implementation Rules") and the Double Taxation Agreement concluded between China and other states (the "Taxation Agreement"), it is hereby clarified, the relevant matters concerning remunerations earned by individuals without residence within the territory of China for their employment in companies, enterprises and economic organizations ("Enterprise within the terriitory of China") or agencies, offices established by foreign enterprises within the terriitory of China as well as standing institutions defined in the Taxation Agreement ("Institution within the terriitory of China") as follows:
I. Determination of the source of remunerations
According to Item 1 of Article 5 under the Implementation Rules, remunerations earned within the terriitory of China shall mean remunerations paid to individuals for their work within the terriitory of China. Remunerations earned by individuals for their work within the terriitory of China shall be deemed as incomes from China whether paid by overseas enterprises or sole proprietorship employers; Remunerations earned by individuals for their work overseas shall be deemed as incomes from overseas sources whether it is paid by overseas enterprises or sole proprietorship employers.
II. Ways to determine income tax payable by individuals who do not have residence within the terriitory of China and have stayed within the terriitory of China for no more than 90 days during a tax year or for no more than 183 days during the period specified in the Taxation Agreement
According to Item 2 of Article 1 under the Tax Law, Article 7 of the Implementation Rules and relevant provisions of the Taxation Agreement, remunerations paid by overseas employers to their individuals within the terriitory of China who do not have residence Chinese residence and have stayed within the terriitory of China for no more than 90 days during a tax year or for no more than 183 days during the period specified in the Taxation Agreement may be exempted from taxation, provided that such remunerations is not born by the employer's Institution within the terriitory of China.
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