Foreign affairs sub-bureau of Beijing Local Taxation Bureau,
We now forward to you the Reply of the State Administration of Taxation on the Taxation Affairs Related to Representative Offices of Foreign Enterprises (G. S. H [2004] No. 568), and notify you of the following matters:
　　I. The ways in which the representative offices of foreign enterprises pay tax shall be determined strictly according to Beijing Local Taxation Bureau Forwarding the Notice of the State Administration of Taxation on Taxation Management of Permanent Representative Offices of Foreign Enterprises (J. D. S. F. [2003] No. 333), which stipulates that the permanent representative offices of foreign enterprises shall determine their ways to pay business tax by themselves in accordance with the business nature of their headquarters and their practical situation, and declare the tax according to relevant regulations.
　　II. According to the Reply of the State Administration of Taxation on the Taxation Affairs Related to Representative Offices of Foreign Enterprises (G. S. H. [2004] No. 568), the tax techniques for the representative offices of foreign enterprises engaged in trade businesses as stipulated in Article 2(2) in the Notice of the State Administration of Taxation on Taxation Management of Representative Offices of Foreign Enterprises (G. S. F. [2003] No. 28) is amended. The representative offices of foreign enterprises, all of whose businesses are to make market survey for their headquarters’ self-supporting commodities, provide commercial information and undertake other preparatory and auxiliary businesses shall be exempted from business tax.
　　III. You should adjust your polices and work in accordance with the regulations of the State Administration of Taxation. The representative offices of foreign enterprises that can be exempted tax according to the regulations shall provide relevant certificates in accordance with Article 1(1) in the Notice of the Ministry of Finance and the Administration of Taxation on Collecting Business Consolidated Tax and Business Tax from Representative Offices of Foreign Enterprises ([85] C. S. W. Zi No. 197) so as to re-determine their ways to pay tax. You can work out the specific work process by yourself and take statistics and filing for relevant materials.


　　Feb. 2, 2005


　　　　　　　　　　　　　　　　State Administration of Taxation
　　　　　　　　　　　　　　　　　　G. S. H. [2004] No.568

　　Reply of the State Administration of Taxation on the Taxation Affairs Related to Representative Offices of Foreign Enterprises

　　Xiamen Municipal Office, State Administration of Taxation,
　　We have received your Request for Instruction on Tax Polices for Permanent Representative Offices of Foreign Enterprises (X. G. S. F. [2004] No. 91). The following is our reply to the taxation affairs related to the permanent representative offices of foreign enterprises engaged in preparatory and service businesses:
　　The permanent representative offices of foreign enterprises that are engaged in “self-supporting trade(s) and agency business(es)” as stipulated in Article 2(2) in the Notice of the State Administration of Taxation on Taxation Management of Permanent Representative Offices of Foreign Enterprises (G. S. F. [2003] No. 28) refers to those that are engaged in both self-supporting trade(s) and agency business(es). The representative offices of foreign enterprises, all of whose businesses are to make market survey for their headquarters’ self-supporting commodities, provide commercial information and undertake other preparatory and auxiliary businesses, as long as their headquarters can provide certificates to prove that they has all along adopted the self-supporting mode for China’s commodity trade as stipulated in Article 1 in the Notice of the State Administration of Taxation on Several Matters Related to Permanent Representative Offices of Foreign Enterprises (G. S. F. [1997] No. 002), can be exempted from tax in accordance with Article 1 in Notice [1997] No. 002, and declare the tax in accordance with Article 1 in the Notice of the State Administration of Taxation on Taxation Management of Permanent Representative Offices of Foreign Enterprises (G. S. F. [2003] No. 28).


　　May 17, 2004