There would be no BT if with your investment you can participate in the profit distribution as an investor and at the same time share the investment risks.
As an investment holding company (HC) in China, how should we charge our fee and pay BT for the services between our holding company and our subsidiaries?
a) Service fees charged by HC to your subsidiaries should be on an arm-length basis. Otherwise, tax authorities will have the right to adjust the price. b) Contracts should be entered to detail the service scope and fees. All fees charge by your HC should be subject to BT. c) If HC signs contracts with […]
As a foreigner / foreign enterprise without presence in China, should I / we pay BT for the income from leasing houses / buildings located in China?
Yes. The leasee shall take the responsibility to withhold BT for you.
Yes. These fees, which have no definite connection with the sale of goods or provision of services by you, shall be subject to business tax, including entrance fees, advertising and promotion fees, display fees, management fees, etc.
No. Tax treaties only deal with the double taxation of income taxes.
The Business Tax assessable period could be five days, ten days, fifteen days or one month. The actual assessable period of taxpayers shall be determined by the responsible tax authorities. If BT cannot be assessed in fixed periods, it could be assessed on a transaction-by-transaction basis. Where a taxpayer uses one month as an assessable […]
Yes. If you conduct following activities, there would be no BT. a) Nursing services provided by nurseries, kindergartens, old people’s homes, welfare institutions for the handicapped, matchmaking and funeral services; b) Services provided individually by the disabled to the public; c) Medical services provided by hospitals, clinics and other medical institutions; d) Educational services provided […]
A taxpayer engaging in both BT taxable activities and sales of goods subject to VAT should separately accounts for both types of activities and sales. If the taxpayer failed to do so, all services and sales are subject to VAT instead of BT.