In October 2017, the State Administration of Taxation (SAT) released the Public Notice on the Matters Regarding Withholding Corporate Income Tax (CIT) at Source for Non-Tax Resident Enterprises (Non-TREs) (SAT Public Notice  No. 37, PN 37). PN 37 will take effect from 1 December 2017 and replaces a series of important circulars, such as Circular Guoshuifa  No.3 (Circular 3).
PN 37 comprehensively streamlines the withholding regime. Notable changes are as follows:
PN 37 will bring significant changes to the way non-TREs fulfil their China tax obligations, and the way withholding agents perform their withholding obligations in every aspect of a cross-border transaction. Parties to cross-border transactions should pay particular attention to these new rules.
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