The Notice of The State Administration of Foreign Exchange and the State Administration of Taxation on issues Relating to the Submission of Tax Certificate of Overseas Payment in Special Programs such as Service Trade
Huifa 2008 No. 64
To improve the national foreign exchange management and tax management, the State Administration of Foreign Exchange and the State Administration of Taxation have jointly issued this notice on the issues relating to the submission of tax certificate of overseas payment in service trade, earnings, regular transfers and some capital special programs on November 25, 2008.
Core Content£º
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Where Non-resident enterprises have foreign exchange funds from service trade, earnings, regular transfers and capital items from China and domestic institutions and individuals pay more than the equivalent of USD30,000 for a single payment (excluding the equivalent of USD30,000), they should apply to the tax authorities for ¡°Tax Certificate of Overseas Payment in Service Trade, Earnings, Regular transfers and Some Capital Special Programs¡± according to relevant state regulations.
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Domestic institutions or individuals need not apply for and submit the ¡°Tax Certificate¡± for items with actual expenses occurring overseas.
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Where it is required to submit the tax certificate in overseas payment to foreign companies of shipping income, it shall be implemented according to the regulations of the ¡°The Supplementary Notice of the State Administration of Taxation and the State Administration of Foreign Exchange on strengthening the tax management of foreign company¡¯s shipping income and the management of overseas payment of international maritime industry¡±.
It is effected since January 1, 2009
The Notice of the State Administration of Taxation on Printing and Distribution of ¡°The Provisional Measure for the Management of the Deduction of the Source of Income Tax of Non-resident Enterprises¡±
Guoshuifa (2009) No.3
To carry out ¡°the Corporate Income Tax Law of the People's Republic of China¡± and its implementing regulations and to regulate the management of deducting the source of the tax of non-resident enterprise income, the State Administration of Taxation has issued this notice on January 9, 2009.
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Where Non-resident enterprises obtain equity investment gains such as dividends, bonuses and interest, rents, licence income, transfer of property income and other income subject to corporate income tax from the territory of China, the source deduction will be applied with units or individuals who directly bear the obligation to pay the money as withholding agents in accordance with the relevant laws and contracts.
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The withholding agent should convert the before-tax income to after-tax income of non-resident enterprises, and then calculate tax.
- Non-resident enterprises who enjoy preferential tax reduction and exemption should process according to related tax relief management approaches and regulations of administrative examination and approval program. Without the approval or before the tax relief application is approved, withholding agents should be required to pay corporate income tax when payment occurred.
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Non-resident companies can apply for the implementation of the tax agreements, if this provision is inconsistent with the tax agreements which are applicable to Non-resident companies; If Non-resident companies has not applied for the implementation of the tax agreements, provisions from domestic tax laws and regulations will be carried out.
- Withholding agents shall suspend payments equivalent to tax liability to non-resident enterprises and report to its competent tax authorities within one day and submit a written note when non-resident enterprises refuse to deduct tax.
It was effected since January 1, 2009
The Management Methods of the State Administration of Taxation for the Exchange and Settlement of the Corporate Income Tax of non-resident Enterprises
Guoshuifa (2009) No. 6
In order to regulate management on non-resident corporate income tax final settlement, according to "The Corporate Income Tax Law of the People's Republic of China " (Corporate Income Tax Law for short) and its implementing regulations and "The Tax Collection and Administration Law of the People's Republic of China " (Tax Collection and Administration Law for short) and its implementing regulations, the State Administration of Taxation issued the Methods on January 22, 2009.
Non-resident enterprises which are established according to the laws of foreign countries (regions) with management departments outside China and have set up offices or places in China (Enterprises for short), regardless of profit or loss, should participate in the exchange and settlement of the corporate income tax according to Corporate Income Tax Law and the provisions of the Methods.
- Non-resident enterprises not subject to exchange and settlement areª¥
1¡¢those which undertake contracted projects or provide temporary services in China for less than a year and terminate business activities during the year and have settled the taxes.
2¡¢those which have cancelled during the period of exchange and settlement.
3¡¢others which may keep from participating in the exchange and settlement of the corporate income tax upon approval by the competent tax authority.ª¥
1¡¢Enterprises which fail to apply for annual income tax within the prescribed period without the approval of the competent tax authority to extend the time of payment or submit information that is incomplete or does not meet the requirements should make up for the report within the prescribed period upon receipt of the ¡°Notice of Correction in Limited Time¡± issued by the competent tax authority.ª¥ª¥ª¥
2¡¢Where the enterprises fail to go through the exchange and settlement of the corporate income tax within the prescribed period, apart from ordering them to going through in limited time, the competent tax authority will impose an overdue fine according to The Tax Collection and Administration Law if there is an overdue tax.ª¥ ª¥
3¡¢Where a dispute arises between enterprises and tax authorities, The Tax Collection and Administration Law will be applied.
It is effected since January 1, 2008.
The Provisional Methods for the Management of the Tax from the Undertaking of Projects and the Provision of Service by Non-resident Enterprises
The State Administration of Taxation Decree No. 19
In order to regulate Tax Collection management on undertaking contracted projects or service provision by non-residents in China, the State Administration of Taxation issued the interim provisions on February 5, 2009.
Core content£º
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Non-resident enterprise which fails to submit ¡°Report Form for Non-resident Enterprises contracted engineering work and the provision of services enjoying the tax treaty treatment¡± and the relevant supporting materials or does not meet the tax treatment conditions due to project execution changes shall not enjoy the tax treaty treatment, and shall pay taxes in accordance with the provisions of the Corporate Income Tax Law.
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The certificate of payment domestic institutions and individuals obtain from abroad, if the competent tax authorities doubt on their authenticity, it may be required to provide a confirmation statement from overseas notary public or Certified Public Accountants, after audited and approved by the tax authorities, can be accounted for as an accounting certificate. It will affect pre-tax deduction of corporate income.
- The legal representative of the non-resident enterprises or non-resident individuals in tax arrears don¡¯t settle tax liability in accordance with the provisions and late payment penalty without providing tax guarantee before exit, The tax authorities may notify the immigration authorities to prevent its exit.
It is effected since March 1, 2009.
The Notice of the State Administration of Taxation on further strengthening the non-resident tax management¡±
Guoshuifa (2009) No.32
To implement the spirit of National Tax Work Conference, Further improve tax collection and management work, strengthen the management of non-resident tax effectively, further improve quality and efficiency of the non-resident tax management, the State Administration of Taxation issued this Notice on March 9, 2009.
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Strengthen management on non-resident corporate income tax reporting and exchange and settlement.
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Strengthen tax collection management on undertaking contracted projects or service provision by non-residents.
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Strengthen deducting the source of the tax of non-resident corporate income.
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Strengthen the management of Tax Certificate of overseas payment.
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Do well on the prediction and analysis of tax revenue.
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Make full use of modern information technology.
The Notice of the Ministry of Finance and the State Administration of Taxation on Business Tax Transition Policy on Cross-year Old Contract
Tax (2009) No.32
The Ministry of Finance and the State Administration of Taxation issued about the Notice on Sales Tax Transition Policy on Cross-year Old Contract on August 25, 2009, which clarify that those labor contracts Signed with Offshore companies or individuals before December 31, 2008 (including December 31),and have not yet completed the execution of those contracts until December 31, 2008, are suitable for old or new business tax policy.
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About whether it is domestic business tax act or how to determine the turnover, if it expired before December 31, 2009, those contracts are suitable for Pre-amended business tax policy.
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Matters such as suitable tax rate for cross-year old contract, occurrence time of tax liability, tax location, withholding agent, RMB conversion rate, Preferential policy about tax reduction and exemption and other matters, those contracts are suitable for Revised business tax policy since January 1, 2009.
- Business tax Enterprise have paid, Overpaid, have been withheld, can be deducted from the tax liability in future or apply for tax refund.
The State Administration of Taxation issued the notification about Chinese-holding enterprises registered Overseas should be identified as resident enterprises based on actual administration standard.
Guoshuifa (2009) No.82
In order to regulate the implementation of judgment standard of resident enterprises according to enterprise income tax law , Strengthen the management of corporate income tax, The State Administration of Taxation issued the notification about enterprise income tax of Chinese-holding enterprises registered Overseas(overseas Chinese-funded enterprises for short), identified as resident enterprises based on actual administration on April 22,2009.
Core content£º
1¡¢High-class administrators responsible for implementing daily production and operation management and the places they perform their duties are Mainly located in the territory of China.
2¡¢Corporate financial decisions (such as borrowing, lending, financing, financial risk management, etc.) and personnel decisions (such as appointment, dismissal and remuneration, etc.) are decided by institutions or personnel located in China, or those decisions need to be approved by institutions or personnel located in China.
3¡¢The main business of property, accounting books, corporate seal, minutes of board of directors and shareholders meeting or deposited in the archives of the territory of China.
4¡¢More than 50% of (including 50%) directors or senior managers who have the right to vote should reside in the territory of China constantly.
- Those overseas Chinese-funded enterprises which have been identified as resident enterprises, are to be exempt from taxation when they obtain the dividends, bonuses and other equity investment income from the resident enterprises, while those enterprise investors should submit 10% corporate income tax when they obtain dividends, bonuses and other equity investment income.ª¥
- Those overseas Chinese-funded enterprises which have been identified as resident enterprises, then become Dual-resident status enterprises, are suitable for the tax agreement (or arrangement) entered into between China and other countries (or regions).
It is effected since January 1, 2008.
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This publication, organized by the Information Department of BM Intelligence Consultants (Shenzhen) Limited, is for reference only. Whether its contents apply to specific situations will depend on the particular circumstances. Readers should not rely on any information in this publication and to use it as a substitute for professional advice. Our Company does not assume any responsibility for any loss as a result of negligence or other reasons or the reliance on such information, no matter how the losses are caused.
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BM Intelligence Group (bmi)
BM Intelligence (bmi) was established in 1995, and was listed on the Hong Kong Stock Exchange in 2001.It became the first listed company in financial advisory filed in China. After listing, bmi rapidly added the assessment, funds, financial public relations, stock registration and other teams and set up BM Intelligence Group to provide customers with one-stop financial professional services.
The Group's head office is located in Hong Kong and supported by branch offices in Shenzhen, Shanghai, Beijing, Quanzhou, Xiamen, Guangzhou, Chengdu and other areas, with more than 200 professionals. We can integrate the resources and strengths of the Group quickly to provide customers with comprehensive, one-stop, professional services in the financial field, which include investment and financing consultancy, tax management and planning advise, corporation secretary & tax agency, professional translations, funds & wealth management, stock registration, real estate agency, financial PR, project management, marketing strategy and promotion, financial planning, information technology and related business in China. Meanwhile, the Group cooperates with associates and close partners in China to provide customers with the evaluation, auditing and capital verification services of the professional agents under the Chinese standards and international standards.
As a well-known financial services provider, the Company integrates the professional experience and vast network resources to provide customers with tailor-made services.
bmi Consultants (Shenzhen) Co., Ltd. (bmi Shenzhen)
As a wholly owned subsidiary of bmi, bmi Shenzhen is responsible for the Group's businesses in China. We are based in mainland China, relying on the Group's international background, depending on a strong team of professionals and business network to provide customers with a one-stop professional services in the financial field, including company secretaries, tax advisers, investment and financial consultancy, translation services and statutory authentication and other supporting services. Since its establishment, it has contributed to dozens of companies from home and abroad to complete integration and acquisition of corporate assets; successfully assisted more than 30 enterprises to list and finance overseas; provided one-stop service for dozens of overseas clients to invest in China; provided one- stop service for hundreds of domestic customers to invest overseas. We comprehensively analyze the geographic and industry factors to provide customers with the best solution to help customers achieve their development goals.
Services contents of Shenzhen Branch
Current Top referrals: Pay Fees outside, Special Tax Agent
¡ùTax Consultancy: tax agency, tax consultancy, financial advice, customs consultancy
¡ùCompany Secretary: accounting tax, domestic and foreign company registration, change, cancellation
¡ùVerification Services: internal verification, annual inspection, tax verification report; domestic and foreign auditing
¡ùInvestment and Financing Advice: enterprise private financing, IPO financing consultancy
¡ùSupporting Services: financial translation, assets evaluation, legal advice
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