(Promulgated by the State Administration of Taxation on January 13, 1998)
With regard to the issue of whether the business tax is payable on a foreign enterprise which has no establishment within Chinese territory but has obtained income from the transfer of intangible assets into Chinese territory, clarification is given as follows: In accordance with the provisions of Article 1 of the Interim Regulations of the People's Republic of China on Business Tax and of Article 7 of the rules for the implementation of the Regulations, business tax shall be payable on a foreign enterprise which has no establishment within Chinese territory but has obtained income from the transfer of intangible assets into Chinese territory.
