Circular of the State Administration of Taxation on the Relevant Issues Concerning the Determination of Permanent Establishments in Tax Agreements

Circular of the State Administration of Taxation on the Relevant Issues Concerning the Determination of Permanent Establishments in Tax Agreements

Guo Shui Fa [2006] No. 35

March 14, 2006

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan, and Institute of Continuing Tax Education of Yangzhou,

It is prescribed that the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried out by Paragraph 1 of Article 5 (Permanent Establishment) and the term "permanent establishment" shall not include the fixed business place established solely for of the enterprise itself to carry out preparatory or auxiliary activities by Paragraph 4 as in foreign tax agreements signed by our country prescribes that.
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