You will find here Mazars China Newsletters published in 2010 and 2011.
Further to the announcement of the PRC indirect tax reform, the Ministry of Finance and the State Administration of Taxation jointly issued two circulars, Caishui [2011] 110 (“Circular 110”) and Caishui [2011] 111 (“Circular 111”), on 16 November 2011 to provide the implementation details of the pilot program of indirect tax reform in Shanghai which is effective from 1 January 2012.
The National Tax Bureau in Beijing recently revised the Enterprise Income Tax (“EIT”) qualification for representative offices of foreign enterprises, requesting EIT declarations previously performed based on deemed profit now to be performed based on expenses.
We wish to raise your attention on the notice Cai Zong Han [2011] no.57, issued on July 22nd, 2011, by the Ministry of Finance. The notice states that starting January 1st, 2012, all companies established in Beijing, including notably foreign invested companies, sino-foreign joint-ventures and representative offices of foreign enterprises, are liable to the Local Educational Surcharge (“LES”).
The amended PRC Individual Income Tax (“IIT”) has become effective from 1 September 2011.
This newsletter is to explain the salient points of this Circular and to comment possible implications for foreign companies having representative offices (“RO”) in China.