Creation of a Taxable Presence in China: Traps for the Unwary
On 25th June, Dezan Shira & Associates in collaboration with The American Chamber of Hong Kong will host a lunch seminar to provide an overview of the PE concept, how a PE can be created under the PRC-Hong Kong tax treaty, as well as summarise some of the strategies that are commonly used to potentially mitigate PE risk.
Many enterprises in Hong Kong that conduct business in China are unaware that these activities may constitute a permanent establishment (PE) which thus subjects them to corporate income tax in China.
In recent years, China’s tax authorities have tightened the tax administration and scrutiny over PEs and as such it is a very important area that companies need to be mindful of. PEs can be created in many different ways and can take many different forms, for example, there are fixed place PEs, construction PEs, agency PEs and service PEs.
The presentation will include an overview of Circular 75 (which sets out China’s current interpretation regarding the implementation of double taxation agreements (DTAs) as well as Public Notice 11 (issued by the China tax authority to update its interpretation of a few articles under DTAs concluded by China as well as other DTA treatments).
Venue: AmCham office, 1904 Bank of America Tower, 12 Harcourt Road, Central, Hong Kong
Cost: $300 members / $480 non-members
First 15-20 minutes is for networking, sandwiches and beverages included
This seminar is hosted by the Taxation Committee Hong Kong
For Registration, please kindly contact Bonnie Zheng at firstname.lastname@example.org.