Dear Members,
We are delighted to welcome you to the next meeting of the Finance & Taxation Working Group to take place on Tuesday, 25th September at 9 am at the European Chamber Offices in Shanghai.
Agenda:
1. Permanent Establishment (PE) in China - More that a technical risk? - Presentation by Claus Schuermann, Tax Director and Jane Wang, Senior Manager at Pricewaterhouse Coopers.
The comprehensive tax arrangement for the avoidance of double taxation between the Mainland and Hong Kong SAR ("New DTA") was concluded in August 2006. On 4. April 2007, the State Administration of Taxation of China released a notice to provide interpretation and implementation guidelines on the New DTA, including those on PE. Separately, the new PRC Income Tax Law which will take effect from 1. January 2008 includes the new concept of Tax Resident Enterprose ("TRE"). Tres, which include enterprises that are established outside China but with an effective management office based in China, are subject to PRC Income Tax Law based on their worldwide income. The ever increased activities of foreign companies, through their employees or agents in China, to take advantage of the low costs or otherwise in China could now be caught by the China tax net.
2. Lobbying Action plan for 2007/2008
3. Forward agenda for the Finance & Taxation Working Group
We look forward to welcoming you at the meeting. Please confirm your attendance to me on ikraft@euccc.com.cn by next Monday, 24th September.