The Finance & Taxation Working Group of the CCIFC is please to invite you to this breakfast seminar on the topic:

Taxation of Non-resident Enterprises: Changes in the Computation of the Tax Base of Permanent Establishments and Representative Offices

A seminar presented by: Stéphane VERNAY & Pierre WIEHN, Gide Loyrette Nouel, Attorney-at-laws.

"Two new tax circulars promulgated last February brought major changes in the computation of the tax base of non-resident enterprises having a permanent establishment or a representative office in China. All foreign enterprises conducting a business activity in China will be affected by these changes.

The new tax circulars both restate the principle of taxation on an actual basis for enterprise income tax (EIT) purposes. Regarding permanent establishments, this is a dramatic change compared with the longstanding practice of the tax authorities consisting of relying on deemed profit rates to determine the taxable income. Nevertheless, taxation on a deemed income remains possible, but according to deemed profit rates which have been substantially increased. As for representative offices, the new tax circulars set forth a new tax regime concerning both EIT and business tax. The new regime will apply to the tax filing for the first quarter of 2010 to be made before this April 15.
In this context, this meeting will aim at presenting the changes introduced by the new tax circulars and addressing numerous issues which remain unclear."

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