Q&A on Asian Bus.

This is the place that our Editors will reply to your various questions about doing business in Asia.
Please utilize it as a solution to the issues you have doing your daily business across Asia.

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Is income received by a foreign consulting firms for work done in the PRC taxable there?

  • FAQ: CHINA
  • Date: 15.07.2010

If a foreign consulting firm separately signs contracts with clients to provide consulting services, if the services are rendered within the territory of China, all such income should be subject to income tax and business tax in China.

Where part of the services are provided overseas, taxpayers should divide the total service fees into domestically earned and foreign earned. The domestic portion of income should be taxed.

For more details, see Tax Planning and Compliance in Asia , [CHN ¶13-220] Consulting services