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3.2. Practical Aspects of Tax Residence

The determination of corporate residence for FIEs in China is essentially a matter of fact, which is established with reference to whether or not the company has been set up in accordance with PRC Law and has been issued their business license. There are no other specific tests for FIEs.

Resident status due to having effective management in China is based on having substantial and overall management and control over manufacturing and business operations, human resources, financial and/or property aspects of an enterprise.