Circular of the State Administration of Taxation on Issues concerning the Withholding of Income Tax of Foreign Enterprises on Fees Payable by Enterprises in China

Circular of the State Administration of Taxation on Issues concerning the Withholding of Income Tax of Foreign Enterprises on Fees Payable by Enterprises in China

Guo Shui Han [1998] No. 757

December 9, 1998

Recently, the local taxation authorities have discovered, during the foreign taxation inspections, that certain enterprises, public institution units, and departments in China (hereinafter referred to as domestic paying units) calculate interest, rental fees, and royalties that should have been paid to foreign enterprises during the current period in accordance with the stipulations of the contract into the cost and expenses of the enterprises during the current period.
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