1. Q: How long should a non-resident enterprise that undertakes project operations and provides labor services in China complete the tax registration?

A: According to Article 5, Paragraph 1 of the Interim Measures for the Tax Management of Non-Resident Enterprises Engaged in Project Operation and Provision of Services, non-resident enterprises undertaking project operations or providing services within China should complete the tax registration procedures with the competent tax authority in the project location within 30 days from the date of signing the project contract or agreement.

2. Q: If a non-resident enterprise establishes two or more institutions or places within the territory of China, and chooses to consolidate enterprise income tax payments at their principal institution or location, does it need to be examined and approved by the tax authorities?

A: It does not need to. For specific regulations, please refer to the Announcement by the State Taxation Administration, Ministry of Finance, and People's Bank of China on Issues Related to the Consolidated Tax Payment of Enterprise Income Tax for Non-Resident Enterprises (State Taxation Administration Announcement No.12 of 2019).

3. Q: What materials should be kept for reference to enjoy the agreed treatment?

A: (1) Tax resident identity certificate issued by the tax authority of the contracting party to the agreement proving that a non-resident taxpayer has obtained tax residency status for the current or previous year; for those eligible for international transport provisions or agreed treatment, proof demonstrating compliance with the stipulated conditions can be used to replace the tax resident identity certificate;

(2) The contracts, agreements, resolutions of the board of directors or the board of shareholders, payment vouchers and other ownership certificates related to the acquisition of the relevant income;

(3) Those who enjoy the treatment of dividends, interest, and royalty agreements should retain relevant materials proving their identities as "beneficial owners";

(4) Other materials that the non-resident enterprises consider to prove that they are eligible for the agreed treatment.

When the original documents are in a foreign language, a Chinese translation should be provided as required by the competent tax authority. Enterprises should be responsible for the accuracy and completeness of the Chinese translation.

4. Q: After completing the tax filing, how to deal with any inaccuracies found in the "Filing Form" or changes that occur in the filing items?

A: Before any external payments are made, the registrant can choose to modify or cancel the "Filing Form" at the tax service hall or the electronic tax bureau. However, if external payments have already occurred, the "Filing Form" cannot be canceled and can only be modified.

5. Q: Which tax authority is supposed to issue the Chinese tax resident identity certificate if the domestic or foreign branch of a Chinese resident enterprise requires it?

A: According to the provisions of Announcement of the State Taxation Administration on Adjusting Relevant Matters Concerning the Chinese Tax Resident Identity Certificate (State Taxation Administration Announcement No.17 of 2019): "1. The applicant should apply to the county tax authority that has jurisdiction over their income tax (hereinafter referred to as the competent tax authority) for the issuance of the 'Tax Resident Certificate'. Domestic and foreign branches of Chinese resident enterprises should be applied for by their Chinese headquarters to the competent tax authority of the headquarters. Partnerships should submit the application through their Chinese resident partners to the competent tax authority of the Chinese resident partners."

6. Q: What materials should an applicant submit to the competent tax authority to apply for the "Chinese tax resident identity certificate"?

A: According to the provisions of Announcement of the State Taxation Administration on Adjusting Relevant Matters Concerning the Chinese Tax Resident Identity Certificate (State Taxation Administration Announcement No.17 of 2019): "2. Applicants requesting the issuance of a 'Chinese tax resident identity certificate' should submit the following materials to the competent tax authority:

(1) "Chinese tax resident identity certificate" application form;

(2) The contracts, agreements, resolutions of the board of directors or shareholders, relevant payment vouchers and other supporting materials related to the income to be treated by tax treaties;

(3) If the applicant is an individual and has a residence in China, he/she should provide evidence of habitual residence in China due to his/her household registration, family or economic interests, including the applicant's identity information and description of his/her residence;

(4) If the applicant is an individual and has no residence in China, and has resided in China for a total of 183 days in a tax year, he/she should provide proof of his/her actual residence time in China, including entry-exit information and other information;

(5) When a domestic or overseas branch applies through its headquarters, it should also provide the registration of the headquarter and the branches;

(6) When a Chinese resident partner of a partnership submits an application, it also needs to provide the registration status of the partnership.

The materials submitted or provided as mentioned above should be submitted in Chinese text. If the original documents are in a foreign language, a Chinese translation should also be provided. When the applicant submits copies of the above materials to the relevant tax authority, the copies should be stamped or signed by the applicant. The tax authority will retain the copies after verifying the originals.

7. Q: Do non-resident enterprises without an establishment in China need to pay enterprise income tax on their income?

A: Non-resident enterprises that do not have establishments or places within China, or that have such establishments or places but whose income is not actually connected to them, should pay enterprise income tax on their income sourced from within China. The income tax payable by the non-resident enterprise on the income obtained as prescribed above should be withheld at source, and the payer shall be the withholding agent. The tax shall be withheld by the withholding agent from the amount paid or due for each payment.

8. Q: How should overseas tourists handle departure tax refund when they depart?

A: According to Article 2, Article 8, Article 18, Article 19, and Article 22 of the Announcement No. 41 of 2015 by the State Taxation Administration, foreign nationals and compatriots from Hong Kong, Macao, and Taiwan who stay in China for a period less than 183 days, and purchase eligible personal items at tax refund shops and require departure tax refund, shall:

1) Overseas tourists who apply for a departure tax refund after purchasing tax refund items in tax refund shops, shall, before leaving the Chinese mainland, obtain the Refund Application Form for Overseas Visitors from the tax refund shops on the strength of their valid identity documents and VAT invoices for tax refund items (issued by the upgraded version of the VAT invoice system).

2) When overseas tourists depart, they shall go through the verification procedures for tax refund to the Chinese Customs.

3) When applying to the tax refund agency for the departure tax refund, overseas tourists shall submit the following materials:

(1) Valid identity certificate;

(2) Refund Application Form for Overseas Visitors checked and signed by the Customs.

4) When overseas tourists receive or process their tax refund, they should sign and confirm the "Departure Tax Refund Receipt for Shopping by Foreign Tourists".

9. Q: The process for external remittance filing has been completed, but what to do if there is a prompt indicating that there is no tax category determination? How to add a tax category?

A: Go to the competent tax authorities to handle the identification of withholding taxes (fees). When conditions permit, taxpayers are suggested to submit applications online through electronic tax bureau and other channels.

10. Q: If an enterprise cannot obtain an invoice for the expenses incurred in purchasing goods or services from abroad, can the obtained receipt be used as the enterprise income tax pre-tax deduction voucher?

A: According to Article 11 of the Measures for the Administration of Enterprise Income Tax Pre-Tax Deduction Vouchers (State Taxation Administration Announcement No. 28 of 2018): "For the expenses incurred by the enterprise in purchasing goods or services from abroad, the invoice issued by the other party or the receipt voucher with the nature of an invoice and the relevant tax payment voucher shall be used as the pre-tax deduction voucher", and the Invoice Management Measures of the People's Republic of China stipulates: "If an entity or individual obtains an invoice or certificate related to tax payment from outside China, the tax authority may require it to provide a confirmation certificate from an overseas notarial institution or a certified public accountant when there is any doubt in the examination of tax payment. Only after the examination and approval of the tax authority can it be used as a certificate for accounting purposes." When an enterprise purchases goods or services from abroad, it shall ask for invoices or receipts with the nature of invoices, payment of relevant taxes and fees, or provide confirmation certificates from overseas notaries or certified public accountants.

Note: The English version is for reference only; the official Chinese document shall prevail.