Representative Office with a head office engaged in business advisory, tax advisory, law, accounting, auditing or other type of consulting services as required to maitain complete accounting records and evidence of properly calculated revenue and taxable income. their tax liabilities will be base on actual revenue and profit.

Representative Office of entities that engage in agency or treading activities perform business activities on behalf of the head office. Since such Ros do not enter into agreement with their customer directly and since income attributable is normally collected bu the head office,revenue of these ROs determined on a cost-plus basis.

Any RO does not fall into above two categories, but still carries about taxable activities, will be taxed according to the actual revenue generated, including amounts received by the head office outside of China and attributable Ro. If no revenue is generated then annual activity reports must be filed with tax bureau within one month of the year-end.