Local taxation bureau and foreign affairs sub-bureau in Chaoyang District,
　　We now forward to you the Notice of the State Administration of Taxation on How to Collect Personal Income Tax from the Employees of Resident Offices of International Organizations in China, Embassies and Consulates of Foreign Governments in China and Resident News Agencies in China (G. S. H. [2004] No. 808), and notify you of the following matters. Please implement them.
　　I. The competent tax authorities (Local Taxation Bureau of Chaoyang District) shall, according to the Notice of Beijing Local Taxation Bureau on Printing and Issuing ‘Temporal Method of Tax Withholding Authorization’ (J. D. S. Z. [2004] No. 546), authorize Beijing Service Bureau for Foreign Officials or other appointed foreign affairs service agents to withhold the personal income tax payable by the Chinese employees employed and paid by the resident offices of international organizations in China and the embassies and consulates of foreign governments in China that enjoy diplomatic immunity, and sign with the withholding agents an agreement on tax withholding authorization.
　　II. When withholding personal income tax, Beijing Service Bureau for Foreign Officials or other appointed foreign affairs service agents shall distinguish this kind of tax with the tax withheld originally, i.e., the two kinds of tax shall be paid into treasury, counted and declared separately.
　　III. The resident news agencies of each country in China shall make tax withholding and remitting registration in their competent tax authorities (foreign affairs taxation sub-bureau) in presence of the copies of their certificates of resident news agencies in China and the ID cards of their persons in charge to fulfill their obligations to declare and withhold the personal income tax of Chinese and foreign employees according to laws.
　　IV. The competent tax authorities shall make pertinent taxation popularization, receive understanding and support from the resident offices of international organizations in China, the embassies and consulates of foreign governments in China and the resident news agencies of each country in China, and implement the authorization of tax withholding.
　　V. The commission charge for tax withholding authorization shall be refunded at 2% of the amount of tax withheld.

　　Feb. 1, 2005
　　　　　　　　　　　　　　　　State Administration of Taxation
　　　　　　　　　　　　　　　　　　G. S. H. [2004] No. 808

　　Notice of the State Administration of Taxation on How to Collect Personal Income Tax from the Employees of Resident Offices of International Organizations in China, Embassies and Consulates of Foreign Governments in China and Resident News Agencies in China

　　Local taxation bureaus in each province, autonomous region, municipality and city directly under the state planning,
　　In order to strengthen the management of personal income taxation and prevent losses of tax revenues, we now, in accordance with the Personal Income Tax Law of People’s Republic of China and Taxation Management Law of the People's Republic of China, clarify the following matters on the management of personal income tax payable by Chinese and foreign employees working in resident offices of international organizations in china, embassies and consulates of foreign governments in china and resident news agencies in china:
　　I. According to Vienna Convention on Diplomatic Relations and relevant regulations of international organizations, the Chinese employees working in resident offices of international organizations in china and embassies and consulates of foreign governments in china, and the Chinese and foreign employees working in resident news agencies in china shall pay their personal income tax in compliance with the Personal Income Law of People’s Republic of China.
　　II. According to international usage, the non-diplomat foreign employees working in the resident offices of international organizations in China and embassies and consulates of foreign governments in China who are a “permanent resident” shall also pay their personal income tax in the country where they reside, however, Chinese tax laws still have no clear and obvious statutory definition and explanation of a “permanent resident”, so the foreign employees only working in the resident offices of international organizations in China and embassies and consulates of foreign governments in China shall temporarily exempted from personal income tax.
　　If the diplomatic personnel and foreign employees working in the resident offices of international organizations in China and embassies and consulates of foreign governments in China earn money in China from other channels other than official activities, they shall pay personal income tax for such income.
　　III. According to the Personal Income Tax of People’s Republic of China, the units or individuals that directly pay the Chinese employees working in the resident offices of international organizations in China and embassies and consulates of foreign governments in China shall be the withholding or remitting agents for the personal income tax payable by such employees. Considering the particularity of the resident offices of international organizations in China and embassies and consulates of foreign governments in China, the local tax authorities at each level may temporarily not demand the resident offices of international organizations in China and embassies and consulates of foreign governments in China to fulfill the obligation of tax withholding and remitting.
　　IV. In view of the fact that Beijing Service Bureau for Foreign Officials and the foreign affairs service agents appointed by the People’s government at province (city) level may find out through some channels the employment state of Chinese employees working in the resident offices of international organizations in China and embassies and consulates of foreign governments in China, each competent tax authority may, in accordance with Article 44 in the Implementing Rules of Taxation Management of People’s Republic of China, authorize the foreign affairs service agents to withhold the personal income tax payable by the above-said Chinese employees. Each competent tax authority shall enhance their communication with those foreign affairs service agents and go through the formalities for authorization of personal income tax withholding.
　　V. Each foreign affairs service agent that has been authorized to withhold personal income tax shall take effective measures to find out the employment and income state of the Chinese employees working in the resident offices of international organizations in China and embassies and consulates of foreign governments in China, withhold the tax strictly according to laws and submit to the competent tax authorities monthly reports on relevant information.
　　VI. The provincial (city) local taxation bureaus in the areas like Beijing, Shanghai, Guangdong and Sichuan, where there are foreign resident news agencies in China shall periodically ask for the List of Foreign Resident News Media in China from the foreign affairs offices of the provincial people’s government to find out the changes in the employment of the foreign resident news agencies in China and their foreign employees, and demand the above-said news agencies to withhold the personal income tax of their Chinese and foreign reporters and employees according to regulations.

　　June 23, 2004