In accordance with Notice of State Administration of Taxation on Taxation
Management of Resident Representative Offices of Foreign Enterprises
(G.S.F. [2003] No. 28), Beijing Local Taxation Bureau adjusted sales
tax levy and management modes of resident representative offices of
foreign enterprises in order to harmonize the legal relations between
taxpayers and the collectors and to protect the legal rights and interests
of taxpayers. The related items are as follows:
1. From July 1, 2003, the sales tax paying ways of resident representative
offices of foreign enterprises will be no longer defined by tax authorities.
Instead, the said representative offices shall, according to the taxation
policies stipulated in this Announcement, determine sales tax paying
ways based on the businesses of their head offices and their own conditions
and declare and pay taxes thereof. In case the taxpayers determine
an incorrect paying way the tax authorities may make adjustments according
to the tax laws and regulations.
2. Resident representative offices shall handle the tax registration
and declaration as stipulated in the regulations and the following
are four ways:
¡¡(1) The representative offices engaged in consultation services,
including commercial affairs, laws, tax, accounting and auditing,
must establish and perfect account books, correctly calculate incomes
and declare the tax according to facts.
¡¡(2) The representative offices dealing with services like trade (including
general trade and trade agency), advertising and tourism, shall identify
incomes by converting expenditures into incomes and calculate the
tax amount thereof.
¡¡(3) The representative offices that do not belong to the above-mentioned
categories shall declare the tax in conformity to the incomes achieved
through taxable activities (those collected by their respective head
offices are included). The offices having no taxable incomes in the
same year shall report their business activities within one month
after the end of the said year.
¡¡¢¡The taxable business activities of these representative offices
include:
¡¡¡¡¢Ù Services provided to companies within the Group by representative
offices that are set up by the Group or share-holding companies.
¡¡¡¡¢Ú Investment consultation and other consultation services diversified
by representative offices that are established by banking and financing
institutions.
¡¡¡¡¢Û Services in various transportation links provided to customers
by representative offices that are set up by transportation enterprises.
¡¡¡¡¢Ü Other taxable business activities provided to customers by representative
offices.
¡¡¢¢Tax-exempt business activities of the representative offices refer
to:
¡¡¡¡¢Ù Businesses solely conducted for the production of the head offices
and sale of self-made products, such as getting market information,
providing business materials, making contacts and other preparatory
and auxiliary activities. Not included are business activities of
the same category or related activities conducted by representative
offices for the agency and services of their own companies.
¡¡¡¡¢Ú Goods export agency services that are entrusted by enterprises
within the border of China.
¡¡(4) When representative offices set up by foreign governments, international
organizations, non-profit institutions and non-governmental organizations
are engaged in non-tax business activities, the offices (their head
offices or higher sections) may apply to the tax authorities for tax
exemption, which will be reported step by step to the State Administration
of Taxation after the examination of the authorities.
The official tax exemption reply issued by the State Administration
of Taxation to representative offices set up by foreign governments,
international organizations, non-profit institutions and non-governmental
organizations shall still remain valid.
3. The resident representative offices of foreign enterprises that
have completed the tax registration shall, according to the taxation
policies stipulated in this Announcement, reconfirm their tax paying
ways based on the businesses of their head offices and their actual
conditions. From July 1 2003, the tax shall be declared and paid in
the ways reconfirmed, and that before this date shall be paid in the
former ways.
4. All of the resident representative offices of foreign enterprises
in Beijing shall download the ¡°Notice of Foreign Branch of Beijing
Local Taxation Bureau on Sales Tax Paying of Resident Representative
Offices of Foreign Enterprises¡± (¡°Notice¡± for short) and ¡°Registration
Form of Sales Tax Paying Confirmation for Resident Representative
Offices of Foreign Enterprises¡± or get them in the Foreign Branch
of Beijing Local Taxation Bureau from the release date of the Notice
to Aug. 31 2003, and handle the related affairs according to the Notice.
Address: No. 206, Gulou East Street, Beijing
Postcode: 100009
Tel: 64022931; 84044488; 84044484
Website: http://shewai.tax861.gov.cn.
Please click ¡°Download Area¡± for relevant materials.
|
