China: Attention to Five Changes for Application of Bilateral Tax Agreement
Range Extension
Public Notice [2015] No. 60 provides non-resident taxpayers enjoying bilateral tax agreement and the international transport agreement with applicable unified, standardized management processes. Specific changes include: signed agreements for the avoidance of double taxation signed tax provisions of airlines, shipping and car services, tax agreement for the mutual exemption of international transport income or exchange.
Cancel Approved
Public Notice [2015] No. 60 rules qualified non-resident taxpayers can enjoy bilateral tax agreement when they file tax returns. In addition, non-resident taxpayers accept the follow-up tax authority management.
Simplified Documents
Public Notice [2015] No. 60 rules non-resident taxpayers to submit two tables: the form of non-resident taxpayers’ tax resident identity information and the report regarding non-resident taxpayers enjoying bilateral tax agreement.
Simplified Treatment
Public Notice [2015] No. 60 is so concise and explicit, which ease its enforcement.
1. Non-resident taxpayers should voluntarily declare duty exemption to the competent tax authorities when they found they should not have enjoyed the benefits of the agreement.
2. Non-resident taxpayers can prescribe for refund and submit relevant certificates to tax authorities within the stipulated timeline when they realized they should have enjoyed the benefits of the agreement.
3. Non-resident taxpayers should submit relevant documents in the next tax returns when their situations change while they still meet the conditions of the benefits of agreement. On the other hand, non-resident taxpayers should pay taxes according to the domestic laws when they no longer enjoy the benefits of enjoying the treatments stipulated in taxation agreement when situations changed.
Consciously Checking
Non-resident taxpayers shall be responsible for the documentation in view of accuracy of information and other materials by themselves. Specially attention: enjoying bilateral tax agreement involves many tax laws, regulations and documents.
