Tag Archives: permanent establishment

April-May China Bulletin

State Administration for Taxation (SAT) issued Announcement 19, [2013] No. 19, with effect from June 1, 2013, providing guidance on seconding expatriates to China.  Many U.S. companies send expatriate employees to work in China on a temporary basis.  If considered employees of the U.S. company while rendering services in China for more than six months in a year, a service permanent establishment (PE) of the U.S. company will normally be created retroactively in China under relevant double-taxation agreements.  A U.S. company with a PE must file Enterprise Income Tax (EIT) returns and pay EIT on actual or deemed income in China. Continue reading