Announcement of Beijing Local Taxation Bureau on Adjusting Sales Tax Levy and Ma

[2008-12-23 16:55:55]




	Announcement of Beijing Local Taxation Bureau on Adjusting Sales Tax Levy and Management Modes of Resident Representative Offices of Foreign Enterprises in Beijing

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: ?????? Services provided to companies within the Group by representative offices that are set up by the Group or share-holding companies. ?????? Investment consultation and other consultation services diversified by representative offices that are established by banking and financing institutions. ?????? Services in various transportation links provided to customers by representative offices that are set up by transportation enterprises. ?????? Other taxable business activities provided to customers by representative offices. ????Tax-exempt business activities of the representative offices refer to: ?????? 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. ?????? 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.


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Source: 北京市地方税务局

Keywords:Tax; Business Tax

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