What factors are to be taken into consideration whether a foreign-invested entity will constitute a service permanent establishment in China?

According to Circular 75, in order to establish a permanent service establishment the following conditions have to be met:

• The overseas parent company has authority over the secondee’s work and bears the relevant responsibility and risks resulting from their work;
• The number of secondees of the subsidiary company and the standard of such assignment are decided by the overseas parent company;
• The salaries and wages of the secondees are decided by the overseas parent company; and
• The overseas parent company obtains profits from the subsidiary company from the assignments of such employees.