Introduce the method of levying on the representative office
Taxpayer： our representative office has just established recently， can you introduce the method of levying on the representative office？
Tax official： I will try. Generally speaking， there are three levying methods， namely return， assessment， and the derivation.
Taxpayer： which kind of office is applicable for the return method？
Tax official： it is the one that can provide the whole materials about the contracts and fees， and at the same time， establish account books to make clear the receipt and expense.
Taxpayer： we can do like that. But sometimes we serve the clients without receiving fees？
Tax official： in consignment trade for other company， fees are also calculated as net price amount by selling price deduce purchase price.
Taxpayer： but some contract indicate the fees or net price amounts， some do not. What should we do？
Tax official ： in this case， the taxable receipt can be assessed on the base of 3% of the whole contractual turnover ，provided that you can provide the whole contractual documents introduced and bargained within china .
Taxpayer ： I see . by the way ， some service are provided for the clients in cooperation with general establishment .my question is whether the service provided outside of china can be deducted and exempt ？
Tax official ： yes， if you can provide valid proof to it ，and correctly divide the fees shared by office and general establishment respectively .otherwise your office is applicable for the method of deriving income from the expenditure that happened .
Taxpayer ： what do you mean by the method of derivation ？
Tax official ： well， now that we can not acquire needed materials ，we can derive the your taxable receipt from your expense .
Taxpayer ： I see. are there any other kinds of representative office applicable for this method ？
Tax office： they are the one that lacks correct proofs to determine whether its operation is taxable ，and the one that can not correctly file the tax return.
taxpayer： how do you determine the method of leaving we are applicable？
Tax official： you can present the application and than we assessed it.