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Which condition is important in order to pay corporate income tax in China?
6th November, 2014
Any foreign enterprise with establishment in China that generates income (including production and business operation income and other income) from within China should be subject …
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Why is the definition of business agent very important for foreign companies?
6th November, 2014
Generally, a business agent refers to a company, enterprise or other economic organisation or individual entrusted by a foreign enterprise to act as an agent …
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What is the difference between permanent establishments and non-establishments of a company. How is this characterised and what are the consequences for taxation?
6th November, 2014
Usually, permanent establishment includes: • place of management; • a branch; • an office; • a factory; • a workshop; • a mine, an …
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What is the usual way the income of a permanent establishment is taxed ?
6th November, 2014
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 …
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Which reasonable deductions are applicable in China?
6th November, 2014
As a general proposition, reasonable costs and executive and administrative expenses will be allowed as deductions in determining the tax liabilities of a permanent establishment …
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How much is the tax rate of permanent establishments of foreign enterprises, and if there is a connection to industry, which jurisdiction will exist in this case?
6th November, 2014
Permanent establishments of foreign enterprises will be taxed at the rate of 25%. In practice, the tax incentives are hard to obtain because these …
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What should a company do if it has not filed its taxes properly, how can this be rectified?
6th November, 2014
China is making great strides in reforming its taxation system, improving the collection of tax and ensuring compliance. The taxation authorities tend to look favorably …
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What happens if an FIE fails to submit to the tax authority tax filings with the stipulated time limit?
6th November, 2014
The tax authority shall make an assessment on the taxable income of the FIE and decide the amount to collect, according to the Provisional Measures …
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How does the tax authority determine the taxable income?
6th November, 2014
Two alternatives are available, one of which is the fixed amount method, whereby the tax authority directly assesses the amount of enterprise income tax that …
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Under what circumstance shall the “assessment and collection” method be taken?
6th November, 2014
• When the account books are not kept properly; • When the actual expenses and costs cannot be accurately verified although the total income can …
