The Measures state that assessment of taxable income of non-tax-resident enterprises shall be based on total revenue, costs and expenses, or revenue converted from operational expenditures.
Tax authorities across China are strengthening transfer pricing regulations. They are now enforcing the collection of contemporaneous documentation and foreign companies must ensure they prepare these by the deadlines issued
Though new measures provide clarifications about R&D centre eligibility requirements for equipment tax benefits, investors should pay attention to several issues
The Circular clarifies matters relating to the exemption of import taxes on articles imported by foreign-invested research and development centres for scientific and technological development purposes and the refund in full of the value-added tax on Chinese-made equipment procured by them.