(Promulgated by the State Administration of Taxation on January 13, 1998)
With regard to the issue of whether the business tax is payable on a foreign enterprise which has no establishment within Chinese territory but has obtained income from the transfer of intangible assets into Chinese territory, clarification is given as follows: In accordance with the provisions of Article 1 of the Interim Regulations of the People's Republic of China on Business Tax and of Article 7 of the rules for the implementation of the Regulations, business tax shall be payable on a foreign enterprise which has no establishment within Chinese territory but has obtained income from the transfer of intangible assets into Chinese territory.
This translation, together with any explanatory material, is provided courtesy of Lehman Tax & Accounting.
