Foreign companies have by an ever-growing large number of their
head offices been strongly felt in Beijing. But one third of these
has not been all that satisfactory for their individual income tax
payment.
Till mid July, Beijing Morning Post told, over 2,300 foreign
representative offices have checked into individual income payment
by themselves of which one third has been in a deplorable state. So
far a total of 63.56 million yuan (US$7.68 million) of individual
income taxes overdue or evaded have been traced, collected and
turned over to the state treasury as a result of the checks
made.
Tax departments in Beijing have since this year kept a close watch
over individual income tax collection and see to it that a
high-handed tax policy be carried out: When overdue taxes are
collected tax evasions are punished.
Problems found are generally in three respects with foreign
representative offices in individual income tax collection in
Beijing. One is no special or an insufficient force having been
arranged or put in charge of the taxation work in those foreign
representative offices. Two, subsidies from foreign representative
offices have not been counted in as part of individuals' wages in
paying income tax. Three, a number of foreign personnel have their
income in two parts both from their offices and general companies
and no individual income taxes have even been asked from many of
these individuals.
(
July 30, 2002)