New rules issued on taxation of foreign company's representative office in China

On 20 February 2010, the State Administration of Taxation issued a circular entitled “Tentative Measures for the Administration of Taxation on Representative Offices of Foreign Enterprises” (Guoshuifa [2010] No.18 (Circular 18)), to clarify and update the taxation policies with respect to representative offices (ROs) in China.  The circular, which applies retroactively as from 1 January 2010 and abolishes previous guidance governing ROs, sets out the requirements relating to the methods to be used to calculate tax, the tax filing procedures, etc. applicable to ROs.  Please open and read the attachment for more details.

Deloitte China Tax Analysis - March 8, 2010 ( English, Chinese)