Direct answer

If people or a dependent agent habitually conclude business in China, ask PE before you celebrate ‘no WFOE, no tax’.

Permanent establishment concepts under domestic law and treaties can create a China taxable presence for foreign enterprises: fixed places, construction sites, service PEs, and dependent-agent PEs. Seconded employees working for a China customer are a recurring fact pattern. PE is not the same as IIT residence for individuals. WHT on fees may still apply even when PE analysis is contested. This wiki orients PE risk. CIT rates live on the rates wiki. Related-party services add TP overlays.

The classification screen

4 questions before you choose the route.

This page identifies the right question and evidence. It does not determine the legal outcome on a reader’s facts.

01

Who is on the ground and for whom?

People map.

People
02

Who signs or habitually brokers?

Agent PE.

Agent
03

Treaty PE article applicable?

Definition shifts.

Treaty
04

Invoices offshore only?

Not a shield.

Invoice

Working rule: Map the regulated role before marketing or launch in China.

What changes the answer

The signal ledger.

These facts move the question beyond a label and into a product, money-flow and control analysis.

Signal
Ask the operating question
Why it changes the route
No WFOE = no CIT
PE blind spot.
Analyse.
Tourist visa consultants permanently client-side
Service PE risk.
Facts.
Ignore secondment contracts
Economic employer issues.
IIT+PE.
Prepare before you escalate

Bring a compact evidence docket—not a pitch deck.

Give a compliance team or counsel the operating facts that reveal the perimeter.

01Secondment/service contractsWho controls.
02Travel calendarsDays.
03Authority to negotiateAgent markers.
Common confusions

Questions people ask before they build.

Short answers for orientation. The right result can change with the service model and current rules.

Does a representative office always create PE?

RO is a regulated presence with its own rules; PE analysis for other models is separate. Get counsel.

Where are CIT rates?

China corporate income tax rates.

Primary authorities

Reviewed sources support orientation, not a fact-specific assessment.