"Tax Resident Representative Offices of Foreign Enterprises Interim Measures" ( Guo Shui Fa  No. 18) Article 6 clearly states: Representative bodies should, at the end of each quarter, within 15 days, declare to the relevant tax authorities to pay corporate income tax, sales tax truthfully and in accordance with the "PRC Interim Regulations on VAT " and its implementing rules, within the prescribed tax period, truly declare to the tax authorities and pay value added tax (“VAT”).
In the tax return, we have to pay attention to the following four aspects:
- Firstly, the abolition of the State Administration of Taxation  No. 28 which is relating to the exempted or non-chargeable tax representative bodies, it states that, it should be within one month after the end of each year, reports its annual production and operation under the reporting requirements. Under the New Approach, since 1 January 2010, all delegated institutions shall, according to Guo Shui Fa [ 2010 ] No. 18, Article 6, within the time limit for filing tax returns, so that these representative offices can enjoy the treatment under tax treaties, but it has to declare according to the deadline set out in Article 6 as well.
- Secondly, sales tax of the representative body is imposed for quarterly reporting rather than on monthly reporting. That is, in the postseason 15 days to pay sales tax to the relevant tax authorities, even though the season does not yield any sales tax revenue, it must report zero. The VAT is not implement on monthly or quarterly reporting basis, the representative bodies should not only report its VAT taxable income within 15 days monthly but need to arrange payment to the tax authorities. If during the month, no VAT should be charged for tax income, it does not need to report to tax authorities for VAT returns.
- Thirdly, although the Guo Shui Fa [ 2010 ] No. 18, it provides that, representative bodies arrange corporate income tax quarterly, the representative offices of foreign enterprises belongs to non-resident companies, final settlement of corporate income tax of the relevant regulatory requirements should be based on the State Administration of Taxation Issued "Non-resident Income Tax Final Settlement Enterprise Management Approach", Notice ( Guo Shui Fa [ 2009 ] the 6th ) regulations. Representative agency shall, from the end of the year, within five months, submit the annual corporate income tax return and arrange final settlement, and to settle the payable tax refund. Meanwhile, representative bodies, in the middle of the year, if discontinue operation activities, it shall since 60 days since terminating the actual operation, apply for the current corporate income tax and arrange final settlement .
- Fourth, the representative body, iduring the process of de-registration, should liquidate its proceeds to the relevant tax authorities, declare and pay the withholding tax.