• Service: Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 6/14/2013

China - Managing taxable presence exposures from secondment arrangements 

June 14: Foreign enterprises with secondment arrangements in China need to be aware of the Chinese tax regime for taxing non-residents with a taxable presence in China on an assessment basis.

A recent tax circular provides guidance that may clarify and assist foreign enterprises manage their Chinese taxable presence exposures from secondment arrangements.

KPMG observation

The issuance of the guidance is a welcome development because secondment tax exposure has been a major area of concern in recent years for foreign businesses operating in China.

The details of the circular, and the manner in which management processes and contractual and financial arrangements covering secondments need to be tightened up in order to limit tax risks, are described in a KPMG report.

Read the 2013 report [PDF 265 KB] prepared by the KPMG member firm in China: Managing Chinese taxable presence exposures from secondment arrangements

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