Notice of Beijing Local Taxation Bureau on Forwarding Official Written Reply of the State Taxation Bureau to the Issues Concerning Management of Taxation Related to Representative Offices of Foreign Enterprises
Jing Di Shui Fa[2005]No. 74

  
To Foreign Tax Office of Beijing Local Taxation Bureau:
ˇˇˇˇOfficial Written Reply of the State Taxation Bureau to the Issues Concerning Management of Taxation Related to Representative Offices of Foreign Enterprises (Guo Shui Hanˇ˛2004ˇłNo. 568) is now forwarded to your bureau, and the advices about relevant matters are given as the follows:
ˇˇˇˇ1. The method of tax payment of permanent representative offices of foreign enterprises should be decided strictly in accordance with the requirements stipulated in Notice of Beijing Tax Bureau about Forwarding Notice of State Administration of Taxation about Management of Taxation Related to Permanent Representative Offices of Foreign Enterprises (Jing Di Shui Faˇ˛2003ˇłNo. 333), namely, permanent representative offices of foreign enterprises should decide the method of business tax payment according to their respective business features and actual situations and make tax declaration according to the stipulations.
ˇˇˇˇ2. The tax levying method for permanent offices of foreign enterprises provided in Paragraph 2 of Article 2 in Notice of State Administration of Taxation about Management of Taxation Related to Representative Offices of Foreign Enterprises (Guo Shui Faˇ˛2003ˇłNo. 28) is amended according to Official Written Reply of the State Taxation Bureau to the Issues Concerning Management of Taxation Related to Representative Offices of Foreign Enterprises (Guo Shui Han ˇ˛2004ˇłNo. 568). If the entire business of the representative office of any foreign enterprise is only limited to collecting market information, providing business information and data to the head office and running other preparative/assisting business, the business tax will be exempted.
ˇˇˇˇ3. Your bureau should carry out policy adjustment and linking-up work according to the stipulations of State Administration of Taxation, and representative offices of foreign enterprises in compliance with the above provisions about tax exemption should submit relevant evidentiary materials in pursuance of the provisions in Paragraph 1 of Article 1 in Notice of Ministry of Finance and State Administration of Taxation about the Issues Concerning Industrial and Commercial Single Tax and Business Income Tax of Permanent Offices of Foreign Enterprises (Cai Shui Wai Ziˇ˛85ˇłNo. 197), and re-confirm the method of payment. Your bureau should draw up particular work procedures and conduct proper statistics and filing of related data.
ˇˇFeb 2, 2005

Official Written Reply of the State Taxation Bureau to the Issues Concerning Management of Taxation Related to Representative Offices of Foreign Enterprises
Guo Shui Han[2004]No. 568
To Xiamen Municipal Office, SAT
ˇˇˇˇThis is to acknowledge the receipt of your Request for Instructions on Issues of Tax Collection Policy on Permanent Representative Offices of Foreign Enterprises (Xia Guo Shui Faˇ˛2004ˇłNo. 91). On the basis of study, the official written reply to the issues about permanent representative offices of foreign enterprises that engaged in preparative job and service business supporting the self-operated commodity trade of the head office is given as follows:
ˇˇˇˇAccording to the stipulations of Paragraph 2 of Article 2 in Notice of State Administration of Taxation about Management of Taxation Related to Permanent Representative Offices of Foreign Enterprises (Guo Shi Faˇ˛2003ˇłNo. 28), permanent representative offices of foreign enterprises engaged in ˇ°self-operated trade and commission agencyˇ± refer to representative agencies engaged in both self-supported trade and commission agency. The entire business of representative offices of foreign enterprises is only limited to collecting market information, providing business information and other preparation/assistance to support the self-operated trade of their respective head offices. If the head office provides supporting document to prove that the representative office has been engaged in the self-operated trade stipulated in Article 1 of Notice of State Administration of Taxation about Some Specific Issues Concerning Permanent Representative Offices of Foreign Enterprises (Guo Shui Faˇ˛1997ˇłNo. 002), the permanent representative office can still enjoy tax exemption as per the provisions of Article 1 of ˇ°Noticeˇ±ˇ˛1997ˇłNo. 002, and the representative office shall make tax declaration in accordance with the stipulations of Article 1 of Notice of State Administration of Taxation about Management of Taxation Related to Permanent Representative Offices of Foreign Enterprises (Guo Shui Faˇ˛2003ˇłNo. 28).
ˇˇMay 17, 2004