Announcement of the State Taxation Administration on Issuing the Administrative Measures for Entitlement to Treaty Benefits for Non-resident Taxpayers
Announcement of the State Taxation Administration on Issuing the Administrative Measures for Entitlement to Treaty Benefits for Non-resident Taxpayers
Announcement of the State Taxation Administration on Issuing the Administrative Measures for Entitlement to Treaty Benefits for Non-resident Taxpayers
Announcement of the State Taxation Administration [2019] No.35
October 14, 2019
In order to deepen the reform of "streamlining administration, delegating powers, and improving regulation and services", further optimize the tax and business environment, and improve the convenience of entitlement to treaty benefits for non-resident taxpayers, the State Taxation Administration has formulated the Administrative Measures for Entitlement to Treaty Benefits for Non-resident Taxpayers, which are hereby released and shall come into effect as of January 1, 2020.
It is hereby announced.
Administrative Measures for Entitlement to Treaty Benefits for Non-resident Taxpayers
Chapter I General Provisions
Article 1 In order to implement the tax provisions of the treaties on the avoidance of double taxation (hereinafter referred to as the "Tax Treaties") and the international transport agreements signed by the government of the People's Republic of China, and regulate the administration of non-resident taxpayers' entitlement to treaty benefits, these Measures are formulated in accordance with the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China (hereinafter referred to as the "Enterprise Income Tax Law") and its implementing regulations, the Personal Income Tax Law of the People's Republic of China and its implementing regulations, and the Law of the People's Republic of China on the Administration of Tax Collection (hereinafter referred to as the "Tax Collection Administration Law) and its implementing rules (all of the above are hereinafter collectively referred to as the "Domestic Tax Law Provisions").
Article 2 These Measures shall apply to non-resident taxpayers with tax payment obligations within the territory of China who need entitlement to treaty benefits.
Article 3 Entitlement to treaty benefits for non-resident taxpayers shall be handled by means of "self-judgment of eligibility, declaration of entitlement, and retention of relevant materials for future reference". Where non-resident taxpayers judge by themselves that they meet the conditions for entitlement to treaty benefits, they may obtain such entitlement themselves at the time of making tax declarations, or at the time of making withholding declarations via withholding agents. At the same time, they shall collect, gather and retain relevant materials for future reference in accordance with the provisions of these Measures, and shall accept the follow-up administration of tax authorities.
Article 4 "Non-resident taxpayer" as mentioned in these Measures refers to taxpayers who shall be tax residents of the other contracting party in accordance with the provisions of the clauses on residents of the tax treaties.
"Treaties" as mentioned in these Measures include tax treaties and international transport agreements. International transport agreements include the air transport agreements, sea transport agreements, road transport agreements, automobile transport agreements, agreements or exchanges of letters on reciprocal exemption from tax on revenue from international transport and other agreements on international transport signed by the government of the People's Republic of China.
"Treaty benefit" as mentioned in these Measures refers to the possible reduction of or exemption from, according to the treaties, obligations for payment of enterprise income taxes and individual income taxes that shall be fulfilled in accordance with the domestic tax law provisions.
"Withholding agent" as mentioned in these Measures refers to entities or individuals that, according to the domestic tax law provisions, have the obligation to withhold taxes on the incomes that non-resident taxpayers earn within the territory of China, including statutory withholding agents and designated withholding agents as stipulated in the Enterprise Income Tax Law.
"Competent tax authority" as mentioned in these Measures refers to the tax authorities that are responsible for the collection and administration of the tax payment obligations of non-resident taxpayers in China in accordance with the domestic tax law provisions.
Chapter II Application of Treaties and Tax Declaration
Article 5 Where a non-resident taxpayer makes a declaration itself and judges by itself that it meets the conditions for entitlement to treaty benefits and needs to obtain such entitlement, it shall submit an Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers (see the appendix) at the time of declaration, and shall collect, gather and retain relevant materials for future reference in accordance with the provisions of Article 7 of these Measures.
Article 6 Under the circumstances of withholding at source and designated withholding, where a non-resident taxpayer judges by itself that it meets the conditions for entitlement to treaty benefits and needs to obtain such entitlement, it shall truthfully fill out an Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers, take the initiative to submit it to its withholding agent, and shall collect, gather and retain relevant materials for future reference in accordance with the provisions of Article 7 of these Measures.
Upon receipt of the Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers, if the withholding agent confirms that the information filled in by the non-resident taxpayer is complete, it shall carry out withholding in accordance with the domestic tax law provisions and the provisions of treaties, and truthfully submit the Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers to the competent tax authority as the attached form of the withholding declaration.
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Announcement of the State Taxation Administration [2019] No.35
October 14, 2019
In order to deepen the reform of "streamlining administration, delegating powers, and improving regulation and services", further optimize the tax and business environment, and improve the convenience of entitlement to treaty benefits for non-resident taxpayers, the State Taxation Administration has formulated the Administrative Measures for Entitlement to Treaty Benefits for Non-resident Taxpayers, which are hereby released and shall come into effect as of January 1, 2020.
It is hereby announced.
Administrative Measures for Entitlement to Treaty Benefits for Non-resident Taxpayers
Chapter I General Provisions
Article 1 In order to implement the tax provisions of the treaties on the avoidance of double taxation (hereinafter referred to as the "Tax Treaties") and the international transport agreements signed by the government of the People's Republic of China, and regulate the administration of non-resident taxpayers' entitlement to treaty benefits, these Measures are formulated in accordance with the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China (hereinafter referred to as the "Enterprise Income Tax Law") and its implementing regulations, the Personal Income Tax Law of the People's Republic of China and its implementing regulations, and the Law of the People's Republic of China on the Administration of Tax Collection (hereinafter referred to as the "Tax Collection Administration Law) and its implementing rules (all of the above are hereinafter collectively referred to as the "Domestic Tax Law Provisions").
Article 2 These Measures shall apply to non-resident taxpayers with tax payment obligations within the territory of China who need entitlement to treaty benefits.
Article 3 Entitlement to treaty benefits for non-resident taxpayers shall be handled by means of "self-judgment of eligibility, declaration of entitlement, and retention of relevant materials for future reference". Where non-resident taxpayers judge by themselves that they meet the conditions for entitlement to treaty benefits, they may obtain such entitlement themselves at the time of making tax declarations, or at the time of making withholding declarations via withholding agents. At the same time, they shall collect, gather and retain relevant materials for future reference in accordance with the provisions of these Measures, and shall accept the follow-up administration of tax authorities.
Article 4 "Non-resident taxpayer" as mentioned in these Measures refers to taxpayers who shall be tax residents of the other contracting party in accordance with the provisions of the clauses on residents of the tax treaties.
"Treaties" as mentioned in these Measures include tax treaties and international transport agreements. International transport agreements include the air transport agreements, sea transport agreements, road transport agreements, automobile transport agreements, agreements or exchanges of letters on reciprocal exemption from tax on revenue from international transport and other agreements on international transport signed by the government of the People's Republic of China.
"Treaty benefit" as mentioned in these Measures refers to the possible reduction of or exemption from, according to the treaties, obligations for payment of enterprise income taxes and individual income taxes that shall be fulfilled in accordance with the domestic tax law provisions.
"Withholding agent" as mentioned in these Measures refers to entities or individuals that, according to the domestic tax law provisions, have the obligation to withhold taxes on the incomes that non-resident taxpayers earn within the territory of China, including statutory withholding agents and designated withholding agents as stipulated in the Enterprise Income Tax Law.
"Competent tax authority" as mentioned in these Measures refers to the tax authorities that are responsible for the collection and administration of the tax payment obligations of non-resident taxpayers in China in accordance with the domestic tax law provisions.
Chapter II Application of Treaties and Tax Declaration
Article 5 Where a non-resident taxpayer makes a declaration itself and judges by itself that it meets the conditions for entitlement to treaty benefits and needs to obtain such entitlement, it shall submit an Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers (see the appendix) at the time of declaration, and shall collect, gather and retain relevant materials for future reference in accordance with the provisions of Article 7 of these Measures.
Article 6 Under the circumstances of withholding at source and designated withholding, where a non-resident taxpayer judges by itself that it meets the conditions for entitlement to treaty benefits and needs to obtain such entitlement, it shall truthfully fill out an Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers, take the initiative to submit it to its withholding agent, and shall collect, gather and retain relevant materials for future reference in accordance with the provisions of Article 7 of these Measures.
Upon receipt of the Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers, if the withholding agent confirms that the information filled in by the non-resident taxpayer is complete, it shall carry out withholding in accordance with the domestic tax law provisions and the provisions of treaties, and truthfully submit the Information Reporting Form for Entitlement to Treaty Benefits for Non-resident Taxpayers to the competent tax authority as the attached form of the withholding declaration.
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