Published on 2018-05-15
Following activities conducted by Representative offices can be exempt from tax: a) Market research b) Information collection, and c) Business liaison, where no income is generated. Any commissions, bonus or fees charged on behalf of the head office will be taxed.
Published on 2018-05-15
A representative office of a foreign entity plays a liaison role for its head office and China market. From legal perspective, it does not have a legal person status where all the liabilities will be borne by its foreign parent. Representative offices are taxed at different manners depending on how they are classified.
