A non-resident enterprise is an enterprise that is established and actually managed in a jurisdiction other than in the People's Republic of China, which has an office or premises established in China or which has income derived from China despite not having an office or premises in the country.

China has recently been optimizing the international business environment for taxation seeking to remove barriers to cross-border tax payments. In fact, this month, it was announced that overseas enterprises can now directly pay tax online through an online cross-border tax service for non-residents launched nationwide by China's State Taxation Administration.

Using only an e-mail address and uploading the relevant certificates, non-resident enterprises can register to the platform, verify the account, and finally obtain the nationwide Identification Code of Non-resident Enterprise. The online cross-border tax service platform is bilingual and supports both Chinese and English.

Through the platform, enterprises will be able to make essential declarations without having to fill out many forms and will be able to calculate their tax via a smart tax calculator.

For many managers based abroad, filing the annual tax has up until this point been a heavy burden, to the extent that they would have to travel to China just to deal with tax-related issues. Annual tax filing management through China’s new online tax payment service is meant to put an end to such practices, allowing for smooth and convenient procedures and aims to save a lot of time, as professed by the authorities.

Another improvement brought about by the new platform is the diversified tax payment channels. An enterprise can now make payments through the UnionPay function, Quick Pass, or other channels.

At PHC Advisory we provide the best solutions to improve and simplify non-resident enterprises’ tax compliance. If you want to know more about China’s new regulations or require consultancy services, feel free to contact us at info@phcadvisory.com and we will be glad to get in touch with you.