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May I ask how to apply for resident representative offices of foreign industrial and commercial tax and exemption from corporate income tax (which materials to be submitted)?

This office has no business or service revenue, whether to pay tax, if not how to handle the duty-free? Thank you!

Posted on 2013-05-09 15:01:16

All Answers


Your office exempt from business tax and enterprise income tax specific basis as follows: the State Administration of Taxation of Foreign Enterprises Representative approved on the Tax Treatment of Guo Shui Han [2004] No. 568, Xiamen City, State Taxation: You Board "on the Foreign Enterprises Permanent representative body to consult on tax policy issues "(Ha Guo Shui Fa [2004] 91) has been received. Self-organization on the total merchandise trade in the preparation, service business, the resident representative offices of foreign tax treatment of the problem, after research, is approved as follows: "The State Administration of Taxation of Foreign Enterprises Permanent Office in the relevant tax administration issues Notice "(Guo Shui Fa [2003] No. 28) Article II (b) provides that the tax in" self-trade and trade agents, "the foreign representative is involved in both self-organization also engaged in agency trade trade representative bodies. Representative offices of foreign enterprises for their entire business is only the total merchandise trade of self-organization to understand the market, and to provide information and other preparations of Trade, auxiliary operations, where its head office to provide proof of information on their goods to China Trade has always adopted a "State Administration of Taxation of Foreign Enterprises Permanent Office in a number of specific issues," (Guo Shui Fa [1997] No. 002) provided the first self-trade, and still in accordance with the State Administration of Taxation [1997] 002 No. "Notice" provisions of Article I be exempted from tax, and press the "State Administration of Taxation of Foreign Enterprises Permanent Office in the relevant tax administration issues," (Guo Shui Fa [2003] 28) the provisions of the first tax return . State Administration of Taxation of Foreign Enterprises Permanent Office in the relevant tax administration issues notice Guo Shui Fa [2003] 28 provinces, autonomous regions, municipalities and cities under separate state and local taxation: to further regulate the resident representative offices of foreign enterprises tax administration, tax administration under the representative of the actual situation in recent years, is on the implementation of "State Administration of Taxation on collection and management of resident representative offices of foreign enterprises the issue of notice" (Guo Shui Fa 996No. 165) the problem, notify the following : First, on behalf of institutional problems of tax registration and tax returns of foreign enterprises in China's Permanent Representative to establish the types of institutions (hereinafter referred to as representative), engaged in various activities in our country, should be in accordance with the relevant provisions of tax law, tax registration and schedule to the competent tax authorities of its operations. Guo Shui Fa 996which belongs to the first second paragraph of Article 165 and other provisions do not tax or tax-free representation can be within one month after the end of the year, reporting its annual business operations. Second, taxes on behalf of institutions in accordance with methods of Guo Shui Fa No. 1996165 in the first paragraph of Article I of the various types of taxable service representative body of the method in accordance with the following provisions, pay the business tax and enterprise income tax: (i) Guo Shui Fa 996No. 165, Article 2 of the first paragraph listed in the business, legal, tax, accounting, auditing and other consulting services of representative institutions, must establish a sound accounting books, the correct calculation of taxable income and income, and truly declare taxes. (B) of the State Administration of Taxation 996165 first paragraph of Article 1,4,5 first item listed in the agency, trade (including self-employed trade and agent trade), and other service representative, taking into account Such representative offices engaged in the business, the main head office in accordance with the requirements of their conduct, and not directly to service-users signed a contract or agreement, the provision of services should be attributed to the income of the representative body, usually unified by its head office charge. To take on such a unified representative body by way of derivation funds to determine income and taxed accordingly. (C) of the State Administration of Taxation 996165 first paragraph of the first addition to the above two types of other representative bodies in the taxable business, may engage in business activities in accordance with its business income actually received (including its head office, collect the ), scheduled to report and pay tax to local tax authorities; who did not get the year in revenues, may within one month after the end of the year, reporting its annual operations. Third, with regard to foreign governments, international organizations, non-profit institutions, civil society organizations and other tax issues on behalf of foreign governments, international organizations, non-profit agencies, civic groups and other representative offices set up in China, by the representative bodies (or their head office , the higher authorities, etc.) or to the local bureau of local taxation made application for tax exemption, and provide the competent tax authorities of the host country (including the head office location of the local tax authorities), government agencies, the representative body of the nature of proof recognized by the local tax authorities , the level approved by the State Administration of Taxation. Fourth, on behalf of institutional management, inspection issues (a) to increase over the daily management representative should be with business, the Economic Commission and other departments to establish the necessary contact system, all the representative bodies into the normal tax administration. (B) deal with the tax authorities on behalf of the tax information reported to carefully review, site inspection when necessary. Check the operation of representative bodies found in the circumstances is inconsistent with its declaration, should be based on "Tax Collection and Administration Law of PRC" and relevant regulations. Fifth, the notice from July 1, 2003 since the implementation of previous provisions inconsistent with this Circular, this Circular shall prevail. State Administration of Taxation on tax resident representative offices of foreign companies a number of specific issues notice Guo Shui Fa [1997] 2, "State Administration of Taxation on Strengthening the resident representative offices of foreign enterprises tax collection and the issue of notice" (Guo Shui Fa [1996] 165, hereinafter referred to as Notice) issued, a number of areas involved in the implementation of specific operational boundary questions through research, are clearly unified as follows: First, the resident representative offices of foreign enterprises (hereinafter referred to as the representative body) for its Total merchandise trade for self-organization preparatory and auxiliary activities, the tax treatment of the issue of foreign enterprises to set up representative bodies of self-organization of its total merchandise trade to understand the market, and to provide information and other preparatory Trade, auxiliary activities, still accordance with the "Ministry of Finance Administration of Taxation on the resident representative offices of foreign industrial and commercial tax levied, corporate income tax issues," ((85) the word tax outside No. 197) Annex the first clause (a) the principles, exempt from business tax and enterprise income tax. Self-organization of the total merchandise trade should be defined strictly in accordance with the "Ministry of Finance Administration of Taxation on the resident representative office in the self-employed trade commodity trading and commodity distinction between the issue of notice" ((86) Foreign tax 053 words) required qualification execution. Qualification pursuant to the provisions, should refer only to self-merchandise trade of goods purchased by the general body and its actual receipt, storage, and then sell the business. Second, on the representative agent business of China's merchandise export trade tax treatment of the issue of foreign companies set up representative offices in China by enterprises, China's merchandise export trade business agent, should under the April 11, 1985 the State Council, Ministry of Finance announced "PRC Ministry of Finance, the resident representative offices of foreign industrial and commercial tax levied, corporate income tax Interim Provisions" the first and the "Ministry of Finance on Some Policy Questions "((85) CaiShuiZi No. 122), the second and third provisions exempt from tax. Third, on the bank financial institutions to establish the taxation of foreign bank representative offices in China's financial institutions to provide credit interest income in, should be the "PRC Foreign Investment Enterprises and Foreign Enterprises" and the relevant provisions of the Agreement to determine the tax levy to avoid withholding tax. The banking and financial institutions set up representative offices in China is only the head office of the credit program to provide customers with a variety of preparatory, ancillary services, where no separate charge for his services, and are not representative of the taxable business activities. Therefore, the first notice (a) of said Section 6-bank financial institutions such as the establishment of representative offices concurrently investment advisory or other consulting services to banks and financial institutions is the establishment of representative institutions, in addition to its head above the credit projects in a variety of preparatory, ancillary services other than investment advice are engaged in various activities, or other advisory services. How to apply for tax exemption, such as foreign governments, international organizations, non-profit agencies, civic groups and other representative offices set up in China, by the representative bodies (or their head office, the higher authorities, etc.) or to the local bureau of local tax raised application for tax exemption, and provide the competent tax authorities of the host country (including the head office location of the local tax authorities), government agencies, the representative body of the nature of proof recognized by the local tax authorities for examination, and reported to the State Administration of Taxation for approval. Belongs to the scope of the following types of tax-free representation in addition should offer the foreign business license or registration certificate must provide the following documents: 1, representative of total body production was only manufacture and sale of the business of the own products to understand market conditions, to provide Business Information, liaison and other preparatory and auxiliary activities, should offer issued by local tax authorities on the nature of the total manufacturing sector for the production of supporting documents, sales contracts, and product introduction books. 2, the representative head of the self-only merchandise trade to understand the market, and to provide Business Information, liaison and other preparatory and auxiliary activities, should offer and sale of the commodity contract, collection and payment of bills and other relevant information and sufficient to prove ownership of the goods is only part of the total body, and its actual receipt, storage, and then sales. The authenticity of the above is required to obtain foreign notaries, accountants proof. 3, the foreign companies set up representative offices in China by enterprises, agency business of export trade of commodities, should provide the agency contract, submit a single such exports. 4, foreign banks set up representative offices in China is only the head office of the credit business to provide customers with a variety of preparatory, ancillary services and no separate charge for his services and activities, should provide the loan contract, on behalf of institutional business registration and so on. 5, the foreign insurance companies to set up representative offices in China to promote business activities in the insurance, should offer the local competent tax authorities issued by the head office on the nature of documents. 6, foreign governments, non-profit institutions, civil society groups, set up representative offices in China engaged in activities other than taxable obligations, should be representative (or his headquarters, the higher authorities, etc.) apply, and provide the host country tax charge The representative confirmed the nature of the evidence. 7, the foreign transport companies have been China's current income and foreign tax laws or agreements signed by the provisions of the agreement, the agent company for the relevant tax or exempt from withholding tax, and on behalf of agencies without additional cost of these services, but all reflected in the total transport revenue agencies can no longer be taxed on behalf of institutions. The total body of such representative offices shall be for transport enterprises. Ocean Shipping Agency representative should provide the withholding tax or exempt from tax in the tax certificate. 8, the foreign contractors set up representative offices in China, only the company contracted projects in the bidding, liaison, market research, preparatory activities, such as the income of the company's projects have been contracted by our existing tax laws and the relevant tax treaty provisions of the tax treatment, can no longer be taxed on behalf of institutions, representative bodies should provide the engineering contract and returns, tax returns and other information. 9, the foreign investment company set up representative offices in China, based in China looking for joint ventures or cooperative projects undertaken by the liaison, mediation, consultation, etc., can be defined as non-taxable business activities, on behalf of agencies shall provide their total body in our joint venture or cooperation within the company's articles of association, and contracts, and other information. However, foreign investment companies set up representative offices in China, if for other companies looking for cooperation projects in China are engaged in the liaison, mediation, consultation, etc., or their co-operation of the joint venture-type investment project is determined to continue to the joint venture-type cooperation projects to provide services constitute the provision of services for his company, according to Guo Shui Fa [1996] 165 documents, should be defined as taxable business activities.

2013-05-09 15:01:16
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