Notice on the reply on business tax for transportation businesses of Macao¡¯s enterprises in Mainland released by State Administration of Taxation is being transmitted by Beijing Local Taxation Bureau
¡¡Jingdishuifa¡²2005¡³74
 
¡¡¡¡  Foreign affairs branch of Beijing Local Taxation Bureau,
¡¡¡¡ We now transmit the Reply on taxation for foreign enterprises¡¯ representative offices released by State Administration of Taxation(Guoshuihan¡²2004¡³568) to you and inform you about the related questions:
¡¡¡¡ I. The classification of the taxation modes of foreign enterprises¡¯ representative offices shall be strictly subject to the requirements of Notice on tax administration for foreign enterprises¡¯ representative offices released by State Administration of Taxation transmitted by Beijing Local Taxation Bureau(Jingdishuifa(2003)333), that is, the representative offices of foreign enterprises shall classify its own payment modes of business tax according to the headquarters¡¯ business and its own situation and declare the tax according to rules.
¡¡¡¡  II. According to the Reply on taxation for foreign enterprises¡¯ representative offices released by State Administration of Taxation(Guoshuihan¡²2004¡³568), the tax mode for the representative offices of foreign enterprises carrying out trade businesses ruled by Article 2 Item 2 of Notice on tax administration for foreign enterprises¡¯ representative offices released by State Administration of Taxation(Guoshuifa¡²2003¡³28) is adjusted. For those representative offices whose businesses are limited in probing the market, supplying business information and other preparation and auxiliary businesses, the business tax can be exempted.
¡¡¡¡  III. Your branch shall play a role in the policy adjustment and delivering according to regulations of State Administration of Taxation. Those representative offices in accordance with the exemption requirements shall resubmit related documents according to Article 1 Item 1 of the Notice on the levy of Industrial and commercial united tax and enterprise income tax on the foreign enterprises¡¯ representative offices issued by Ministry of Finance and State Administration of Taxation((85)Caishuiwai 197) to reconfirm the tax mode. You shall set up the detailed working procedures and finish the statistical work and collation of related materials.
    
¡¡¡¡  Attachment:
    
    
¡¡¡¡  Feb 2, 2005
    
    
    
¡¡¡¡ Guoshuihan¡²2004¡³568
¡¡¡¡ Reply on taxation for foreign enterprises¡¯ representative offices released by State Administration of Taxation
    
¡¡¡¡ Xiamen City State Taxation Bureau,
¡¡¡¡ We have received your bureau¡¯s inquiry for taxation for foreign enterprises¡¯ representative offices(Xiaguoshuifa ¡²2004¡³91). As for the tax treatment on the representative offices of foreign enterprises which carry out preparation and auxiliary businesses for the headquarters, we carried out research and give you the following reply:
¡¡¡¡ The representative offices which carry out ¡°self-operating trade and agency trade¡± bounded to be levied by Article 2 Item 2 of Notice on tax administration for foreign enterprises¡¯ representative offices released by State Administration of Taxation(Guoshuifa(2003)28) is standing for those representative offices which not only carry out self-operating trade but also carry out agency trade. For those representative offices whose businesses are limited in probing the market, supplying business information and other preparation and auxiliary businesses, as long as its headquarter may supply documents to prove that they are taking the mode of self-operating trade stipulated by Article 1 of Notice on several detailed questions on foreign enterprises¡¯ representative offices released by State Administration of Taxation(Guoshuifa(1997)002), it can still be exempted from tax according to the Article 1 of Guoshuifa(1997)002, and declare the taxation according to Article 1 of Notice on tax administration for foreign enterprises¡¯ representative offices released by State Administration of Taxation(Guoshuifa(2003)28).

     May 17, 2004