Tax Implications of Permanent Establishment Status in China presented by Sabrina Zhang

Presenter(s):

  • Sabrina Zhang

    Country of Origin: China
    Title: Partner
    Office: Beijing Office

  • Title: Tax Implications of Permanent Establishment Status in China presented by Sabrina Zhang
  • Date: December 6th, 2012

Sabrina Zhang, National Tax at Dezan Shira & Associates, recaps a seminar at the Swiss Chamber of Commerce. In this seminar she discusses permanent establishment’s (PE) importance for companies sending employees to China for short term business trips. As these trips increase, or as the duration of each stay increases, foreign corporations or foreign invested enterprises now run the risk of having the PE tax apply.

Transcript:

  • Sabrina Zhang, Partner & Tax specialist at Dezan Shira & Associates presents the following at the Swiss Chamber of Commerce.

    Permanent Establishment (PE) companies sending employees to China for short term business trips run the risk of being considered a PE by the Chinese Tax Bureau if over staying the new time limit of 180 days.

    Foreign corporations or foreign invested enterprises now run the risk of having various tax issues apply, see the general list of papers or taxes that would be needed.
    - Tax assessment to discover one’s PE tax rate
    - Tax clearing certificate will include: Value Added Tax (VAT) or Business Tax (BT), Individual Income Tax (IIT), Step Duty (SD), Income Tax

    Chinese clients go through withholding tax procedure but rarely negotiate or know how to find the best tax agreements.

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