The Announcement n. 37 consists in an official interpretative guidance of the rules related to the administration of withholding tax on China-source income derived by nonresident enterprises.
The document provides clear explanation and guidance on collecting the enterprise income tax on China-source income derived by nonresident enterprises and gives solutions on some practical issues.
The Bulletin n.37 is generally viewed positively by industry and shall improve the business environment. Below some of its highlights:
Withdraws certain withholding tax document registration requirements, reducing the administrative burden
Clarifies the withholding tax calculations for disposal gains
Introduces more reasonable timeframes for withholding tax payments
Clarifies the withholding tax obligations of agents and overseas payment recipients.