Risky business in permanent establishments
March 07, 2011 | BY
clpstaff &clp articlesA recent notice provides clarity on what activities of a Permanent Establishment are subject to taxation. This should prompt foreign businesses to re-evaluate their set-up structure
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Many foreign companies are unaware that their business may be subject to Chinese corporate income tax if such business creates a Permanent Establishment (PE) in China. In a recent notice,