Global Employer Services Newsletter November 2019

Promulgation of the administrative measures on entitlement of non-resident taxpayers to tax treaty benefits

In order to deepen the reform of “Streamlining Administration, Delegate Power and Boosting Regulatory Innovations and Upgrading Services” the State Taxation Administration has released the Announcement on Promulgation of the Administrative Measures on Entitlement of Non-resident Taxpayers to Tax Treaty Benefits with effect from 1 January 2020.

This policy has changed the procedure for non-resident tax payers claiming treaty benefits from “Filing” to “Retention of materials for future inspection”. Non-resident taxpayers claiming tax treaty benefits shall adopt the method of making a claim and then retaining the back-up documentation should the claim be audited by the tax authorities at some future point. 

Rebecca Chen