China Law Online Database : novexcn.com

You are using Guest Account

Subscribe To This Law Only

Subscribe To All Law Contents

Print This Page

Back




	NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON FURTHER STRENGTHENING THE TAX ADMINISTRATION OF FOREIGN CONTRACTORS

	(No. 5 [2004] of the State Administration of Taxation January 8, 2004)


SUBJECT : TAX COLLECTION; FOREIGN CONTRACTORS
ISSUING DEPARTMENT : THE STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 01/08/2004
IMPLEMENT DATE : 01/08/2004
LENGTH : 811 words
TEXT :

In order to strengthen the tax administration of foreign enterprises and individuals (hereinafter referred to contractors) who come to China to undertake contract of cooperative offshore or land oil (gas) fields with foreign parties, to undertake engineering work of offshore self-run oil (gas) fields, or to provide labor services (hereinafter referred to undertake contracted petroleum projects or provide labor services), and ensure the implementation of the tax laws of the state, we hereby give our notice regarding the relevant tax payment matters of the contractors in accordance with the relevant provisions in the "Law of the People's Republic of China on the Administration of Taxation Collection" (hereinafter referred to the Taxation Collection Law) and the Detailed Rules for the Implementation Thereof, as well as the "Measures of the People's Republic of China for the Administration of Invoices" (hereinafter referred to Invoice Administration Measures) and the Detailed Rules for the Implementation Thereof:

I. A contractor who gains any income from undertaking contracted petroleum projects or providing labor services on Chinese sea areas or land shall pay all items of taxes in accordance with Chinese tax laws and the relevant provisions. The responsibility to withhold individual income taxes of the contractor's employees shall remain with the contractor.

II. A contractor who comes to China to undertake contracted petroleum projects or to provide labor services shall, within 30 days as of obtaining the business license or concluding the contract, go to the competent taxation organ to make tax registration, and file tax returns in accordance with the law. The contractor may file tax returns either by himself/itself or by entrusting an agent.

III. A company that concludes with the contractor a contract for undertaking a contracted petroleum project or providing labor services (hereinafter referred to contract letting party) shall, within 15 days after the conclusion of the contract, report the name of the contractor, the contracted project, the contracting price, the duration of the contract, the work place and the name, address and telephone of the responsible person of the contractor as well as other relevant information to the contractor's competent taxation organ in writing. If a contract letting party frequently concludes contracts on letting contract, he/it may apply to the competent taxation organ and may, upon approval, regularly collect the information and gather all the information before submission. The contract letting party mentioned in the text shall mean a Chinese-foreign enterprise that engages in Chinese-foreign cooperative petroleum exploration, exploitation or production, or undertakes contracted petroleum projects.

IV. A contractor shall, when gaining all items of income, issue prescribed to the contract letting party the invoices produced under supervision of the taxation organ. He/it must have the invoices he/it has issued outside the country be changed into domestically used ones in the competent taxation organ, and attach the former invoices to the latter ones, that is, the invoices produced under supervision of the competent taxation organ. Such invoices shall be considered settlement documents and be delivered to the contract letting party, while the contract letting party shall, upon strength of the invoices submitted by the contractor and produced under supervision of the competent taxation organ, settle and pay the contracting price.

V. For any contractor who fails to make tax registration in accordance with the provisions, the competent taxation organ may, in accordance with the relevant provisions in the "Taxation Collection Law" and the Detailed Rules for the Implementation Thereof, verify the contractor's taxes payable, and the contract letting party shall withhold such taxes when paying the contracting price.

VI. Where a contract letting party needs to pay foreign exchanges (income from the contractor's undertaking of contract or provision of services) abroad, he/it shall, in accordance with the relevant provisions in the "Notice of the State Administration of Foreign Exchange and the State Administration of Taxation on Relevant Issues concerning the Submission of Tax Documents for Sale and Payment of Foreign Exchanges under Non-trade and Some Capital Projects" (No. 372 [1999] of the State Administration of Foreign Exchange), provide the administrative department of foreign exchange with the tax payment receipt or tax exemption certificate issued by the competent taxation organ.

VII. Where a contractor needs to leave the country, he/it shall settle the taxes payable and overdue payment fines or provide a guaranty to the competent taxation organ prior to his/its exit. If he/it neither settles the taxes payable and overdue payment fines, nor provides a guaranty, the competent taxation organ may, in accordance with the relevant legal provisions, notify the administrative organ of entry and exit to prevent him/it from leaving the country.

VIII. The present Notice shall come into force as of the date when it is received. The previous "Notice of the State Administration of Taxation on Strengthening the Tax Administration of Foreign Contractors of Cooperative Oil Fields" (No. 213 [1994] of the State Administration of Taxation) shall be repealed simultaneously.