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1. IIT ISSUES FOR EXPATRIATES WORKING IN PRC
1.2 IIT OBLIGATIONS TO EXPATRIATES HIRED BY THE FIES
According to SAT [1994] statement 148, it promulgated that senior management personnel of the FIE are entitled to the tax concessions the same as mentioned in above paragraph. In reality, some local tax bureau officials have not formally executed this rule as set out in statement 148. It is important to specifically discuss and clarify whether the entitlement to exempt the non-PRC sourced income from IIT liabilities granted to these expatriates concern, with the representatives of the local tax bureau so as to mitigate their IIT obligations in this regard.
IIT OBLIGATIONS TO EXPATRIATES OF R.O.
The chief representative ("CR") of any representative office is not entitled to 90-day rule for non-PRC sourced income.
IIT OBLIGATIONS TO EXPATRIATES HIRED BY PE OF FIES
FIEs are liable to the CIT (corporate income tax) as they are regarded as having PE in PRC. If the salaries paid by the FIEs in PRC, no matter the length of their stay in PRC, the salaries payable to those expatriates are still liable to IIT obligations.
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