Notice of State Administration of Taxation about Individual Income Tax Collection Method for Employees of International Organization, Embassies of Foreign Governments and News Agencies Stationed in China Forwarded by Beijing Local Taxation Bureau
Jing Di Shui Ge[2005]No. 67

  
To Local Taxation Bureau and Foreign Tax Office of Chaoyang District:
¡¡¡¡Notice of State Administration of Taxation about Individual Income Tax Collection Method for Employees of International Organization, Embassies of Foreign Governments and News Agencies Stationed in China (Guo Shui Han¡²2004¡³No. 808) is hereby forwarded to you, and supplementary notice about relevant issues is given below, please follow and implement them.
¡¡¡¡1. Individual income taxes of Chinese employees hired and paid by international organizations and embassies of foreign governments stationed in China that enjoy diplomatic immunities will be collected by Beijing Service Bureau for Diplomatic Missions entrusted by competent tax authorities (Local Taxation Bureau of Chaoyang District) or collected by any foreign affairs service organization specified by Beijing Service Bureau for Diplomatic Missions on behalf of the tax authorities according to Notice of Beijing Local Taxation Bureau about Printing and Distributing ¡°Interim Measures for Management of Tax Collection on Behalf of Tax Authorities¡± (Jing Di Shui Zheng¡²2004¡³No. 546) , and an agreement with the organization collecting the said taxes on behalf of the tax authorities has been concluded.
¡¡¡¡2. When collecting individual taxes from the above employees on behalf of the tax authorities, Beijing Service Bureau for Diplomatic Missions or the foreign affairs service organization specified by Beijing Service Bureau for Diplomatic Missions should differentiate the taxes from the withheld and remitted individual income taxes before, namely: to differentiate the situations of withholding of taxes of the two types of tax payers, levied, calculated and declared in details respectively.
¡¡¡¡3. Any foreign news agency stationed in China shall carry the duplicated documentation of the agency and the duplicate of the ID card of the principal to handle tax withholding and remitting procedures at the competent taxation authorities (foreign tax office), and perform the obligations of withholding and remitting and detailed declaration of income taxes of foreign employees and Chinese employees.
¡¡¡¡4. The competent tax authorities shall conduct proper publicity of taxation to achieve understanding and supports of international organizations, embassies of foreign governments and foreign news agencies stationed in China, so that tax collection on behalf of the tax authorities can be implemented effectively.
¡¡¡¡5. The commission charges for collection of individual income taxes will be refunded on a basis of 2% of the taxes collected on behalf of the tax authorities.
Feb 1, 2005

Notice of State Administration of Taxation about Individual Income Tax Collection Method for Employees of International Organization, Embassies of Foreign Governments and News Agencies Stationed in China
Guo Shui Han[2004]No. 808
To the taxation bureau of each province, autonomous region, city directly under the Central Government and city directly under State planning:
¡¡¡¡In order to enhance management of individual income tax collection and avoid tax erosion, the issues related to management of individual income tax of Chinese employees and foreign employees in international organizations, embassies of foreign governments and foreign news agencies stationed in China are explained as the follows pursuant to Individual Income Tax Law of the People¡¯s Republic of China and Law of the Peoples Republic of China on the Administration of Tax Collection:
¡¡¡¡1. According to the stipulations of Vienna Convention on Diplomatic Relations and relevant constitutions of international organizations, Chinese and foreign employees of international organizations and embassies of foreign governments in China shall pay individual income taxes in pursuance of the stipulations of Individual Income Tax Law of the People¡¯s Republic of China.
¡¡¡¡2. According to the international convention, if the foreign employees (non-diplomats) working in international organizations and embassies of foreign governments stationed in China are ¡°permanent residents¡±, they shall pay individual income taxes in the country where they work in; however, there isn¡¯t any specific definition of ¡°permanent resident¡± in Chinese tax laws. Therefore, the individual income taxes of foreign employees only working at international organizations and foreign embassies stationed in China are not levied temporarily.
¡¡¡¡In the territory of China, if the diplomats and foreign employees in the international organizations and embassies of foreign governments stationed in China take up nonpublic services out of the organizations or embassies and receive earnings, individual income taxes should be paid.
¡¡¡¡3. According to the stipulations of Individual Income Tax Law of the People¡¯s Republic of China, in terms of individual income taxes of Chinese employees working in international organizations and embassies of foreign governments stationed in China, the unit or individual directly paying income taxes is the withholding and remitting agent; in view of the particularity of international organizations and embassies of foreign governments stationed in China, each level of local tax authorities may, temporarily, not request the international organizations and embassies of foreign countries to perform individual income tax withholding and remitting obligations.
¡¡¡¡4. In view of the fact that Beijing Service Bureau for Diplomatic Missions and the foreign affairs service organization specified by the people¡¯s government of each province (city) can, through proper approaches, achieve the employment information of Chinese employees working at international organizations and embassies of foreign countries stationed in China, the competent tax authorities can entrust foreign affairs service organizations to levy individual income taxes of Chinese employees according to Article 44 of Enforcement Regulations of the People¡¯s Republic of China on Administration of Tax Collocation. The tax authorities should consolidate the ties with foreign affairs service organizations and timely handle the procedures related to collection of individual income taxes of Chinese employees working in international organizations and embassies of foreign governments stationed in China.
¡¡¡¡5. Any foreign affairs service organization that have accepted the commission to collect individual income taxes shall take effective measures to obtain the information related to employment and income of Chinese employees working at international organizations and embassies of foreign governments stationed in China, collect and deliver taxes strictly in accordance with laws, and provide relevant information to the competent tax authorities on a monthly basis.
¡¡¡¡6. Local taxation bureaus of provinces (cities) with foreign news agencies such as Beijing, Shanghai, Guangdong, Sichuan and so on should obtain List of Foreign News Agencies Stationed in China from provincial governments periodically, understand and become familiar with the changes of foreign employees in the foreign news agencies stationed in local regions, and withhold the individual income taxes of Chinese and foreign journalists and employees working in the foreign news agencies stationed in China pursuant to the above requirements.
¡¡Jun 23, 2004