Comments on: Chris Devonshire-Ellis: Triggering Permanent Establishment in China Representative Offices http://www.china-briefing.com/news/2010/03/12/triggering-permanent-establishment-in-china-representative-offices.html Fri, 10 Feb 2012 06:20:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeremy Sargent http://www.china-briefing.com/news/2010/03/12/triggering-permanent-establishment-in-china-representative-offices.html/comment-page-1#comment-28549 Jeremy Sargent Thu, 18 Mar 2010 11:48:39 +0000 http://www.china-briefing.com/news/?p=7062#comment-28549 Thanks. Good article. It is not really all that suprising that, sooner or later, the PRC government would target ROs - given the fact that, in reality, a number of foreign companies use their PRC-based ROs to effectively operate a value-added business. The rules on ROs have always been clear - no "direct business activities" - which mean that strictly, a RO should engage in no more than pure liaison/exchange/promotion type activities. The reality is that many ROs are used to effectively do everything - other than invoice/receive payments or sign contracts. Thanks. Good article. It is not really all that suprising that, sooner or later, the PRC government would target ROs – given the fact that, in reality, a number of foreign companies use their PRC-based ROs to effectively operate a value-added business.

The rules on ROs have always been clear – no “direct business activities” – which mean that strictly, a RO should engage in no more than pure liaison/exchange/promotion type activities. The reality is that many ROs are used to effectively do everything – other than invoice/receive payments or sign contracts.

]]> By: Ross Sorkim http://www.china-briefing.com/news/2010/03/12/triggering-permanent-establishment-in-china-representative-offices.html/comment-page-1#comment-28332 Ross Sorkim Sat, 13 Mar 2010 11:16:34 +0000 http://www.china-briefing.com/news/?p=7062#comment-28332 Very useful thanks. I think they won't be able to get info from the Holding company for many reasons but raiding RO ands possessing computers and records is very much a possibility. Appreciate the heads up. Great commentary. Very useful thanks. I think they won’t be able to get info from the Holding company for many reasons but raiding RO ands possessing computers and records is very much a possibility. Appreciate the heads up. Great commentary.

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