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Application for Entitlement of Non-resident Enterprises to Treatment under Tax Treaties
From: Shenzhen Tax Service, State Administration of Taxation
Updated: 2018-11-24

[Description]

A non-resident enterprise which satisfies the criteria for entitlement to treatment under a tax treaty may, at the time of tax filing or withholding filing through a withholding obligor, submit relevant materials to tax authorities pursuant to relevant regulations to claim tax treaty benefits and to be subject to the tax authorities' follow-up administration.

[Materials Required]

 No.  Materials Name Quantity   Remarks
 1 Report Form for Tax Residency Identity Information of Non-resident Taxpayers (applicable to enterprises)  2 Filing by non-resident (Materials in a foreign language should be attached with the Chinese translation. The same applies to all other materials.)
 2 Report Form for Tax Residency Identity Information of Non-resident Taxpayers (applicable to enterprises)  3 Withholding filing by withholding obligor
 3 Report Form for Entitlement of Non-resident Taxpayers to Treatment under Tax Treaties  2 Filing by non-resident
 4 Report Form for Entitlement to Treatment under Tax Treaties by Non-resident Taxpayers  3 Withholding filing by withholding obligor
 5 Tax Residency Certificate  1 A tax residency certificate issued by a competent tax authority of the other contracting state of the relevant tax treaty after commencement of the previous calendar year and prior to the tax filing or withholding filing. For an enterprise entitled to treatment under international transportation clauses of a tax treaty or an international transportation agreement, the legal person certificate issued by the competent transportation authority of the other contracting state after commencement of the previous calendar year and prior to the tax filing or withholding filing can be a substitute for the tax residency certificate.
 6 Ownership evidence including contracts or agreements relating to the income obtained, board or shareholder resolutions, and payment vouchers.  1 Specifically including: the contract or agreement between the non-resident taxpayer and the payer of income for business profits, income from international transportation, interest, royalties, capital gains, income from all types of services that a non-resident taxpayer obtains within China; the board or shareholder resolution whereby the dividend payer makes the dividend distribution decision for dividends that a non-resident taxpayer obtains within China.
 7  

Evidence that other tax regulatory instruments require for entitlement of non-resident taxpayers to treatment under specific clauses of a tax treaty or an international transportation agreement.

 

 1  
 8 Other materials that a non-resident taxpayer may be able to provide in support of its entitlement to treatment under tax treaties  1 Specifically including; articles of association, financial statements, shareholder structure and other related documents for entitlement to treatment under dividends, interest, royalties, capital gains clauses; patent certificates, copyright certificates and other related certificates for entitlement to treatment under royalties clauses. A non-resident taxpayer may elect to provide other materials that may help the competent tax authority to understand and determine if it satisfies the criteria for entitlement to treatment under tax treaties. A non-resident taxpayer's election not to provide other materials does not influence its application for entitlement to treatment under tax treaties.

[Filing Method]

1.Taxpayer Service Halls

Applicable to all halls in Shenzhen: Yes (√) No ( )

2. Online Services

E-tax bureau: Yes ( ) No (√)

Mobile terminal (tax bureau): Yes ( ) No (√)

WeChat (tax bureau): Yes ( ) No (√)

[Time Limit]

1.For Taxpayers

(1) In case of application for entitlement of non-resident taxpayers to treatment under permanent establishment, business profits, international transportation, dividends, interest, royalties, pensions clauses, or under international transportation agreements, at the first time of tax filing in the tax year in question, or at the first time of withholding filing through a withholding obligor in the tax year in question, where relevant report forms and materials should be submitted; or

(2) in case of application for entitlement of non-resident taxpayers to treatment under capital gains, and other income clauses, at every time of tax filing, or at every time of withholding filing through a withholding obligor, where relevant report forms and materials should be submitted to competent tax authorities.

2.For Tax Authorities

Instantly after acceptance of materials that are complete, compliant with the legal form, and fully filled out.

[Result]

Results will be given by the tax authorities.

[Notice to Taxpayers]

1. Taxpayers are responsible for the authenticity and legality of the information filled out in the report forms and the materials submitted by them. In the event of withholding filing through a withholding obligor based on the report forms and materials provided by a non-resident taxpayer in accordance with the relevant tax treaty, the responsibility for the authenticity of the same remains upon the non-resident taxpayer.

2. Taxpayers only need to visit tax authorities once if the materials are complete and the statutory conditions for acceptance are satisfied.

3. "Treatment under tax treaties" referred to herein means deduction or exemption of corporate income tax liabilities set forth in internal taxation laws by reliance on double taxation conventions entered into by the Government of the People's Republic of China and other countries or regions (including taxation arrangements signed with the Hong Kong SAR and the Macau SAR, collectively referred to as "tax treaties" herein), or taxation clauses of air service agreements, shipping service agreements, land transportation service agreements, or taxation agreements or exchanged letters for mutual exemption of taxation on international transportation income entered into by the Government of the People's Republic of China and other countries or regions (referred to as "international transportation agreements" herein).

4. Corporate income taxes falling under this tax matter include: deduction and exemption of corporate income tax on income from dividend under tax treaties (deduction and exemption code: 04135401), deduction and exemption of corporate income tax on income from interest under tax treaties (deduction and exemption code: 04135501), deduction and exemption of corporate income tax on income from royalties under tax treaties (deduction and exemption code: 04135601), deduction and exemption of corporate income tax on income from capital gains under tax treaties (deduction and exemption code: 04135701), and deduction and exemption of corporate income tax on other income under tax treaties and other similar conventions (deduction and exemption code: 04139901).

5. In case of tax filing by a non-resident taxpayer, such taxpayer shall submit report forms and materials regarding each and every business item, business location or service item respectively to competent tax authorities. In case of withholding filing on a source or appointment basis, where there are multiple withholding obligors, the non-resident taxpayer shall provide report forms and materials respectively to each and every withholding obligor, who should submit the same to competent tax authorities respectively at the time of withholding filing pursuant to relevant requirements.

6. A non-resident taxpayer entitled to treatment under permanent establishment, business profits, international transportation, dividends, interest, royalties, pensions clauses of a tax treaty, or under international transportation agreements, when the criteria therefor remain satisfied and there is no change to the information reported, is exempt from submitting materials again to the same competent tax authority for entitlement to treatment under the same clauses of the tax treaty within three calendar years as of the year in which relevant report forms and materials are submitted.

7. After granting of entitlement of a non-resident taxpayer to treatment under tax treaties, if there is any change of circumstances but the taxpayer is still eligible for such entitlement, the taxpayer should re-submit report forms and materials to competent tax authorities at the next time of tax filing or withholding filing through a withholding obligor. In case of tax filing, if such change bars the taxpayer from being entitled to treatment under tax treaties, the taxpayer's entitlement to such treatment shall be terminated immediately as of the date of the change and tax filing should be conducted pursuant to internal taxation laws. In case of withholding filing on a source or appointment basis, the taxpayer should immediately inform the withholding obligor, who should perform withholding obligations pursuant to internal taxation laws accordingly after knowledge or discovery of the termination of the taxpayer's entitlement to such treatment.

10. Addresses of taxpayer service halls and the website of e-tax bureau are available on the web portals of tax authorities or by dialing the (86-755)12366 tax service hotline.

[Charge]

Free of charge.

(Note: The text above is a translation of the Chinese version for reference only. In case of any discrepancy between the two versions, the original published Chinese version shall prevail.)