SAT Adjusts Non-Resident Taxpayer Registration Requirements

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Jul. 19 – The State Administration of Taxation recently adjusted how non-resident taxes are managed, further regulating registration and documentation requirements for non-resident taxpayers.

Guoshuihan [2010] No. 290, issued on June 21, adjusted several changes and supplements to the Non-Residential Tax Treatment Management Notice (Guoshuifa [2009] No. 124. Namely, it changes the requirement from “signature of the primary tax authorities” into “signature of the tax authorities which received the tax documentations or applications.” It also defines some of the terms of the original notice, including “identification of taxpayer” and “most recent year.”

According to the updated notice, non-residents can only be exempted from submitting materials if they have submitted those materials to the same tax authority. Those who need to apply for approval or file reports to different tax authorities would have to submit relevant materials separately.

The notice also stipulates that the withholding agent should complete registration procedures in accordance with Article XIII of the Non-Residential Tax Treatment Management Notice, regardless of whether the taxpayer has provided relevant information to the tax authorities. If the taxpayer fails to provide required information to a withholding agent, the agent shall not implement the relevant tax treaty treatment.

For more information on non-resident tax treatments, or for other China-related tax advice, please contact Dezan Shira & Associates at tax@dezshira.com.