Permanent Representative Offices, whether exempted or not, has to provide Tax Returns Quarterly

Under the new policy, with effect from 1 January 2010, all representative bodies should be, at the end of each quarter, within 15 days truthfully declare to the relevant tax authorities to pay corporate income tax, sales tax, and in accordance with the "Provisional Regulations on VAT " and its implementation Articles, to provide tax return, in which truthfully declare to the relevant tax authorities, to pay VAT before deadline.

Firstly, the representative office shall obtain business registration documents (or relevant authority) and thereafter, shall within 30 days from the date thereon, holds a copy of the business license to the relevant authorities with the original and copy, other documents and relevant information to the local relevant tax authorities for tax registration.  According to the law, they have to declare and pay enterprise income tax on its taxable income and to declare by law to pay sales tax and VAT.

Secondly, whether or not can it enjoy the tax treatment under an agreement, as long as the books are set out in accordance with the relevant provisions of the representative body, according to the legal, valid certificate bookkeeping, accurate accounting of revenues and costs, in the process of tax returns,  it should follow the new policy when the time limit requirement that, at the end of the quarter, shall within 15 days from the date, honestly declare to the tax authorities to pay corporate income tax, sales tax.  Since the annual corporate income tax should be within 5 months after the end of the tax year, to submit annual corporate income tax return and final settlement, to settle the payable tax refund.

VAT tax specifics tax period by the competent tax authorities according to the magnitude of tax payable by taxpayers for approval; it does not pay taxes in accordance with a fixed term, it can be on transaction basis.   In a month or a quarter, the payment period shall be from 15 days from the date of expiry of tax returns; in the 1st, 3rd, 5th, the 10th or the 15th of a payment period, since the period, within 5 days from the date of full payment, in advance, on the 1st month for tax returns, within 15 days from the previous month and settle tax liability.

Thirdly, when the representative offices change in the content or the resident registration period that expires, early termination of business activities should register the change or cancellation of registration.  Representative bodies in the process of cancellation of registration, the taxation should be liquidated, its liquidation proceeds to the relevant tax authorities to declare and pay the withholding tax.

Representatives of tax authority, during the process of cancellation of representative offices, it is required, before providing to the business sector by the tax, banking, customs and other departments issued by the tax, debt and other related matters, it shall prove relatively complex procedures and formalities, so many delegates institutions resident expiration or early termination of business activity that before they are reluctant to apply for cancellation of registration, thus, it can avoid taxes and debt repayment obligation. 

For example, the Shenzhen Municipal Industry and Commerce departments found that, during the period, it has expired local resident representative office in 2327, the initiative to apply for cancellation of registration is only 163. 

The Tax authority reminds, there is a wide range of penalties on this risk. Attention should be drawn on behalf of the representative office, proactive behavior in the business prior to the termination or cancellation of registration authority for the disposal matters, compliance with statutory obligations.

This article was introduced by the Deep Blue:-