Circular of the State Administration of Taxation on Specifying the Employer in Tax Agreements

Circular of the State Administration of Taxation on Specifying the Employer in Tax Agreements

Guo Shui Fa [1997] No. 124

July 30, 1997

The Offices of the State Administration of Taxation and Local Taxation Bureaus at all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,

Recently, several local taxation bureaus have indicated that some domestic companies or enterprises are hiring the needed personnel to engage in relevant labor activities in our country through labor employment intermediary agencies (hereinafter referred to as the intermediary agencies) established abroad, in terms of "international labor employment". These personnel, usually staying in our country for less than 183 days once or accumulatively, claim to be employed by the intermediary agencies to work in China and to have no employment relationship with companies or enterprises of our country, which meets the three conditions as prescribed in Item 2 of Article 15 "Non-independent Individual Labor Service" of the Agreement on Avoidance of Double Taxation (hereinafter referred to as the Agreement) singed between our country and the country of intermediary agencies, and request the tax authorities of our country for the exemption of tax on their rewards acquired during their working period in our country.
　　......