Nowadays, increasing number of foreign service providers engage in oil and gas projects across China. Challenges facing the service providers come from operating in an unfamiliar country with different culture, political and legal environment, etc. As such, tax legislations and requirements often becomes one of the crucial factors to consider whenever a foreign enterprise chooses to conduct business in China in terms of legal and compliance requirement and impact of profitability.
Tax management is important to service providers - non-compliance could create barriers in daily operation and increase administrative expenses, while proper planning could directly improve financial performance. However, today’s changing legislative and tax environment may cause new issues and uncertainties to foreign service provider’s operation in China.
Understanding typical tax and related issues confronting foreign service providers, KPMG Advisory (China) Co., Ltd. will organize a China Tax Webcast on Challenges Encountered by Foreign Contractors Rendering Services in China. Topics of the webcast will include:
• Registration requirement – besides tax registration by foreign contractors, have your customers also fulfilled other registration obligation (e.g., contract registration for remittance purposes)?
• Corporate Income Tax – how does the actual or deem filing basis apply in China? What are the issues in relation to the two different filing basis?
• Permanent Establishment – what are the local practices of PRC tax authorities across China when their assessing Permanent Establishment of foreign contractors?
• Indirect tax – Any impact from Value Added Tax reform on the services provided by foreign contractors in China? How to claim VAT input credit by your Chinese customers on the VAT paid by foreign contractors?
• Tax filing and payment – under which circumstance shall tax be filed foreign contracts directly or withheld by Chinese customers? How to settle tax payment if no bank account maintained in China?
• Tax clearance and remittance – how does the tax clearance certificate issued when withholding by Chinese customers?
• Offshore services – Any practical risk regarding offshore services (e.g., overseas rental, offshore technical services along with sales of equipment to China)? What are the current practice in China?
• Customs issues – what are the alternative import method for vessel and equipment used for offshore Oil&Gas projects?
• Other common issues – such as Individual Income Tax, cooperation with Chinese customers under withholding scenario?