Income from production and business operations and other income derived by the branches within or outside china of an enterprise with foreign investment shall be consolidated by the head office for purposes of the payment of income tax 外商投资企业在中国境内或者境外分支机构的生产、经营所得和其他所得，由总机构汇总缴纳所得税。
Where an enterprise establishes a branch operation or premises engaging in production or business operations in an other district , the enterprise must also register its head office ' s name , address , legal representative , scope of business , main area of business and name of the party in charge of finance matters 企业在外地设立的分支机构或者从事生产、经营的场所，还应当登记总机构名称、地址、法定代表人、主要业务范围、财务负责人。
Article 5 " head office " mentioned in article 3 of the tax law refers to the central organization which is established in china by an enterprise with foreign investment as a legal person pursuant to the laws of china and which is responsible for the management , operations and control over such enterprise 第五条税法第三条所说的总机构，是指依照中国法律组成企业法人的外商投资企业，在中国境内设立的负责该企业经营管理与控制的中心机构。
Article 20 reasonable administrative expenses paid by a foreign enterprise with an establishment or site in china to the head office in connection with production or business operations of the establishment or site shall be permitted to be itemized as expenses following agreement by the local tax authorities after an examination and verification of documents of proof issued by the head office in respect of the scope of the administrative expenses , total amounts , the basis and methods of allocation , which shall be provided together with an accompanying verification report of a certified public accountant 第二十条外国企业在中国境内设立的机构、场所，向其总机构支付的同本机构、场所生产、经营有关的合理的管理费，应当提供总机构出具的管理费汇集范围、总额、分摊依据和方法的证明文件，并附有注册会计师的查证报告，经当地税务机关审核同意后，准予列支。
Article 2 : for the purposes of these provisions , the term " headquarters " means the sole head organization invested in and established in the city ( here and hereinafter including the two county - level cities of conghua and zengcheng ) by a foreign investor that exercises operational and management functions over the enterprises that the foreign investor has invested in , in or outside china 第二条本规定所称的总部是指外国投资者在本市(含从化、增城两县级市，下同)投资设立的，对其在中国境内或以外区域所投资的企业行使经营和管理职能的唯一总机构。
According to the tentative provisions issued by the state council , the ro has to appoint a designated foreign enterprises service company to do the payroll and social security administration . international and bilateral agreements the international agreements china has acceded to may have different provisions from the domestic laws and regulations in respect of the scope of business activities 其他费用包括为总机构从中国境内购买样品所支付的样品费和运输费用：国外样品运来中国发生在中国境内的仓储费用、报关费用；总机构人员来中国访问聘请翻译的费用；总机构为中国某个专案投标，而由代表处支付购买标书的费用等等。
The international agreements should take precedence in case of inconsistency . china pledged to liberalize the service sector in her commitment to wto accession in 2001 . specifically foreign investors are allowed to set up representative offices inside the prc to engage , to a limited extent , in revenue - generating activities in the field of legal , accounting , tax practices and management consultation （ 2 ）常驻代表机构为其总机构垫付的不属于其自身业务的机票费用；总机构组织的代表团访华，由常驻代表机构垫付的该代表团人员在华食、宿费用，交通费用以及交际应酬费用，但不包括为来华从事商务洽谈，签订合同等代表团所垫付的上述费用。
For wholly owned subsidiaries that do not maintain separate books from parent companies , normal wage and salary expenses , business phone charges , lease expenses incurred should not be treated as kickback income from price transfers at , or at near final consumer retail prices from the parent companies , and should not be used to offset tax credits 与总机构实行统一核算的分支机构从总机构取得的日常工资、电话费、租金等资金，不应视为因购买货物而取得的反利收入，不应做冲减进项税额处理。
