The “Administrative Measures on Corporate Income Tax for Non-resident Enterprises and Establishments” will be publicly solicited for comments from the public on October 30. The heads of relevant departments and bureaus of the State Administration of Taxation explained that the “Interim Measures on Taxation Administration of Contracted Projects and Provision of Labor Services for Non-residents” introduced in 2009 have played a positive role in regulating relevant tax administration. Currently, with the development of the new economy and new business formats, there are more and more non-resident enterprises and places coming to China to host cultural and sports performances, carry out Sino-foreign cooperation to run schools, and set up partnership enterprises. In order to better serve the country's unified market construction and optimize the tax processing process, the State Administration of Taxation has integrated existing policies, studied and formulated the “Administrative Measures on Corporate Income Tax for Non-resident Enterprise Institutions and Establishments”, and plans to abolish the “Interim Measures” at the same time. Currently, a “Draft for Solicitation of Comments” has been formed. The “Draft for Solicitation of Comments” makes uniform provisions on the management of corporate income tax for various types of non-resident enterprises, institutions and establishments. Compared with the “Interim Measures”, there are three main changes: the first is to focus on corporate income tax and broaden the scope of application. The provisions relating to taxes other than corporate income tax in the “Interim Measures” have been replaced by other laws and regulations. The “Draft for Solicitation of Comments” focuses on the scope of tax categories to corporate income tax, and extends the scope of application from non-resident enterprises contracting engineering operations and provision of labor to various institutions and places of non-resident enterprises within the country, further enhancing the uniformity and standardization of collection and administration. Second, unify tax payment locations to facilitate offsite withholding. The “Draft for Solicitation of Comments” unifies the tax payment sites for non-resident enterprises to self-report and designate withholding into the location of the agency or place, and unifies the administrative departments for self-reporting, designated withholding, and tax recovery into the competent tax authority where the agency or place is located, unifying offsite collection and administration to facilitate tax reporting and payment by taxpayers. The third is to streamline submission materials to reduce the burden of tax processing. Relying on the information system, the frequency and requirements of submission are simplified, forms and data items are streamlined, and the tax processing burden on taxpayers and withholding agents is effectively reduced. Overall, the “Draft for Solicitation of Comments” optimizes system regulations and tax processing processes, better adapts to current collection and administration practices, and further enhances the effectiveness of tax administration. This consultation will continue until November 29. The public can submit comments and suggestions by logging on to the website of the State Administration of Taxation and mailing letters. The tax department will carefully sort out and study the feasibility opinions and suggestions put forward by various parties, and further revise and improve the “Draft for Solicitation of Comments”.

The “Administrative Measures on Corporate Income Tax for Non-resident Enterprises and Establishments” will be publicly solicited for comments from the public on October 30. The heads of relevant departments and bureaus of the State Administration of Taxation explained that the “Interim Measures on Taxation Administration of Contracted Projects and Provision of Labor Services for Non-residents” introduced in 2009 have played a positive role in regulating relevant tax administration. Currently, with the development of the new economy and new business formats, there are more and more non-resident enterprises and places coming to China to host cultural and sports performances, carry out Sino-foreign cooperation to run schools, and set up partnership enterprises. In order to better serve the country's unified market construction and optimize the tax processing process, the State Administration of Taxation has integrated existing policies, studied and formulated the “Administrative Measures on Corporate Income Tax for Non-resident Enterprise Institutions and Establishments”, and plans to abolish the “Interim Measures” at the same time. Currently, a “Draft for Solicitation of Comments” has been formed. The “Draft for Solicitation of Comments” makes uniform provisions on the management of corporate income tax for various types of non-resident enterprises, institutions and establishments. Compared with the “Interim Measures”, there are three main changes: the first is to focus on corporate income tax and broaden the scope of application. The provisions relating to taxes other than corporate income tax in the “Interim Measures” have been replaced by other laws and regulations. The “Draft for Solicitation of Comments” focuses on the scope of tax categories to corporate income tax, and extends the scope of application from non-resident enterprises contracting engineering operations and provision of labor to various institutions and places of non-resident enterprises within the country, further enhancing the uniformity and standardization of collection and administration. Second, unify tax payment locations to facilitate offsite withholding. The “Draft for Solicitation of Comments” unifies the tax payment sites for non-resident enterprises to self-report and designate withholding into the location of the agency or place, and unifies the administrative departments for self-reporting, designated withholding, and tax recovery into the competent tax authority where the agency or place is located, unifying offsite collection and administration to facilitate tax reporting and payment by taxpayers. The third is to streamline submission materials to reduce the burden of tax processing. Relying on the information system, the frequency and requirements of submission are simplified, forms and data items are streamlined, and the tax processing burden on taxpayers and withholding agents is effectively reduced. Overall, the “Draft for Solicitation of Comments” optimizes system regulations and tax processing processes, better adapts to current collection and administration practices, and further enhances the effectiveness of tax administration. This consultation will continue until November 29. The public can submit comments and suggestions by logging on to the website of the State Administration of Taxation and mailing letters. The tax department will carefully sort out and study the feasibility opinions and suggestions put forward by various parties, and further revise and improve the “Draft for Solicitation of Comments”.