Tax Bureau to Look at Cross Border Charges

Posted by Reading Time: < 1 minute

Jul. 30 – China’s State Administration of Taxation (SAT) has instructed local authorities to carry out tax audits on companies with cross-border charges.

Local authorities in major cities will soon implement this following the Jin Bin Han [2009] No. 103 notice from the SAT. Company service fees charged to a Chinese subsidiary from overseas with pending taxes like corporate income tax and business tax will be meted a late payment surcharge of 0.05 per day plus penalty in addition to settling the taxes.

Companies are then advised to check records for outstanding or remitted inter-company service fees without tax clearance and ensure that all documents are in order.

For more information, please contact or visit

This article is also available in German.