Taxation FAQ's

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What is the generally way to taxed the income of permanent establishment?

Generally, a permanent establishment of a foreign enterprise should be taxed on its income sourced from within China. Theoretically, the foreign sourced income attributable to the permanent establishment of a foreign entity may not be taxed in China.

The taxable income of a permanent establishment within a tax year should be determined by the total income of the current year with deductions of the relevant costs, expenses and losses.