[Taxation] Taiwan Entity without Permanent Establishment in Mainland shall be Exempt from Business Income Tax in Mainland

2009-12-25 11:27:15

In case Taiwan signs tax treaty with China in future, the Taiwan entity, without permanent establishment in Mainland, undertaking construction job under contract or providing technical services shall be exempt from business income tax in Mainland as long as the service term is no longer than a certain period (6 months or 12 months in general). Taiwan business income tax rate will be decreased to 20% from 2010, which is lower than 25% in Mainland. In the past, all Mainland-source income of a Taiwan entity would be subject to Mainland business income tax. If the tax treaty between Taiwan and Mainland is signed, Taiwan entities can save part of expense on business tax.


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