Ruling on permanent establishments and profit allocation
The State Administration of Taxation (SAT) issued a ruling on 19 July 2006 (Guo Shui Han [2006] No.694) that interprets when services performed by employees of foreign enterprises give rise to a permanent establishment (PE) in China (People's Rep.). The notice applies from the date of publication. The content of the notice is summarized below.
With regar…
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