Circular of the State Administration of Taxation on Issues concerning Enhancing the Imposition and Administration of the Tax on the Permanent Representative Offices of Foreign Enterprises
Circular of the State Administration of Taxation on Issues concerning Enhancing the Imposition and Administration of the Tax on the Permanent Representative Offices of Foreign Enterprises
Circular of the State Administration of Taxation on Issues concerning Enhancing the Imposition and Administration of the Tax on the Permanent Representative Offices of Foreign Enterprises
Guo Shui Fa [1996] No.165
September 13, 1996
To the state tax bureaus and local tax bureaus of all provinces, autonomous regions, municipalities directly under the jurisdiction of the Central Government, and the cities specifically designated in the state plan:
In order to further enhance tax imposition and the administration of the permanent representative offices of foreign enterprises (hereinafter referred to as representative offices) and define the scope of taxes and tax breaks, in accordance with the stipulations in the Interim Regulations of the People's Republic of China on Business Tax (hereinafter referred to as the Provisional Regulations on Business Tax) and its rules for implementation, the Income Tax Law of the People's Republic of China on Foreign-invested Enterprises and Foreign Enterprises (hereinafter referred to as the Income Tax Law of Enterprises) and its rules for implementation, and the Tentative Provisions of the Ministry of Finance of People's Republic of China on the Levying of the Unified Industrial and Commercial Tax and the Enterprises Income Tax on the Permanent Representative Offices of Foreign Enterprises (hereinafter referred to as the Tentative Provisions). We hereby clarify the relevant issues as follows:
Article 1 Regarding the scope of taxes and tax breaks on the representative offices
1. In accordance with Article 2 of the Tentative Provisions, the taxable business activities of the representative offices include:
(1) Commodities agencies and other trade related activities undertaken by the representative offices established by the various trading companies, shops, or stores.
(2) All types of service activities provided by the representative offices established by various consulting service enterprises such as trade, law, tax, and accounting.
(3) All types of service activities provided by the representative offices established by groups or shareholding companies to companies within the group.
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