In the digital advertising sphere, Google AdSense is undoubtedly a widely-used and highly-regarded platform. As both advertisers and website owners, we all want to maximize our ad revenue and operational efficiency.
In mid-2023, AdSense began pushing out tax update notifications to users in mainland China. Failure to process these updates in a timely manner would result in the suspension of payments. To complete the tax information and potentially qualify for tax relief, it’s necessary to apply for a “Certificate of Chinese Fiscal Resident” from the Chinese tax authorities.
What is a “Certificate of Chinese Fiscal Resident”? #
Here is a response from ChatGPT:
The "Certificate of Chinese Fiscal Resident" is a document issued by the Chinese tax authorities to confirm an individual's or a company's status as a tax resident in China. According to Chinese tax law, individuals or entities residing or registered in mainland China with a resident status are required to pay taxes in accordance with Chinese tax regulations.
The purpose of this certificate is to determine whether an individual or entity is considered a tax resident in China, which then establishes their tax obligations and eligibility for tax benefits. In certain tax-related matters, such as applying for tax reductions or enjoying benefits under a tax treaty, holding a "Certificate of Chinese Fiscal Resident" is essential.
Relevant Links #
- Contracting Entity is Google LLC
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Contracting Entity is Google Ireland
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Contracting Entity is Google Asia Pacific Pte. Ltd.
How to Check Your Contracting Entity #
The contracting entity is the part shown in the blue box:
| English Entity Name | Chinese Entity Name | Tax ID | Treaty Country Name |
|---|---|---|---|
| Google LLC | 谷歌有限公司 (Google LLC) | EU372000041 | United States |
| Google Ireland | / | IE6388047V | India |
| Google Advertising (Shanghai) Company Limited | 谷歌广告（上海）有限公司 (Google Advertising (Shanghai) Co., Ltd.) | 913100006901563863 | China |
| Google Asia Pacific Pte. Ltd. | 谷歌亚太私人有限公司 (Google Asia Pacific Pte. Ltd.) | 200817984R | Singapore |
Required Application Materials #
- “Certificate of Chinese Fiscal Resident” Application Form
The application form is quite detailed. Some sections are not straightforward, so they will be discussed separately in point 4.
- Documents related to the income that is intended to receive tax treaty benefits, such as contracts, agreements, board or shareholder resolutions, and payment vouchers.
This requires the “Google AdSense Online Terms of Service” and its Chinese translation. For those whose contracting entity is Google Asia Pacific Pte. Ltd., you can download and print these documents without any changes from here:
adsense contract (translation).docx: https://url21.ctfile.com/f/51425821-992700568-07dc69?p=8268 (access code: 8268)
adsense contract.docx: https://url21.ctfile.com/f/51425821-992700724-c6e81a?p=8268 (access code: 8268)
- For individuals with a domicile in China, provide proof of habitual residence in China due to household registration, family, or economic interests. This includes personal identification information, explanatory materials, or other documents.
This document can be a copy of a residence permit or temporary residence permit, or other proof issued by the police.
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For individuals without a domicile who have resided in China for a full year, provide relevant proof of actual residence time in China. This includes passport information, explanatory materials, or other documents.
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If a domestic or foreign branch is applying through its head office, registration information for both the head office and the branch must also be provided.
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If a Chinese resident partner of a partnership enterprise is applying, the partnership’s registration information must also be provided.
How to Fill Out the Application Form #
The application form should be filled out as follows. Please fill in the details truthfully based on your own situation:
Taxpayer Identification Number (TIN): For individuals who are Chinese citizens, fill in the “Citizen ID Number” from your PRC Resident Identity Card. If you do not have a Citizen ID Number, fill in the TIN assigned by the tax authority. For companies, fill in the company’s TIN or Unified Social Credit Code.
Name of Competent Tax Authority: For individuals, open the Individual Income Tax app and find the name of the competent tax authority identified in the last tax deduction record for the year you are applying for.
Name of Contracting State (Region), Name of Counterparty Taxpayer (Chinese/English), Counterparty Taxpayer Identification Number: Fill in based on the contracting entity found on AdSense and the table provided above.
Name of Treaty to be Enjoyed: If the entity is Google Asia Pacific Pte. Ltd., you can fill in: “Agreement between the Government of the People’s Republic of China and the Government of the Republic of Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.”
Treaty Article to be Enjoyed: The article of the tax treaty the applicant wishes to benefit from, including: dividends, interest, royalties, permanent establishments and business profits, gains from property, international shipping, independent personal services, dependent personal services (employment income), artistes and sportsmen, pensions, government services, teachers and researchers, students, other income, etc. Fill in one article per line. If more than two articles are involved, please attach a separate statement. For AdSense personal accounts, you can fill in: “Independent Personal Services.”
Amount of Income to be Enjoyed Under the Treaty: Fill in the amount of income that the applicant expects to receive under the tax treaty and that is related to this “Certificate of Chinese Fiscal Resident.” (Note: This is the amount of RMB you earn annually from AdSense.)
Estimated Tax Reduction Amount: The difference between the amount of tax payable calculated according to the laws of the contracting state and the amount of tax payable calculated according to the tax treaty. (Note: There is a tax exemption agreement between China and Singapore, so this amount would be the amount of tax deducted by Singapore multiplied by the income earned on AdSense. Note: Singapore has a progressive tax rate, and in addition to personal income tax relief, the personal income tax rate remains between 0% and 22%.)
Name of Partnership Enterprise, Partnership Taxpayer Identification Number, Country (Region) of Residence, Location: Fill in based on the actual situation. For personal AdSense accounts, leave blank.
Application form and filling instructions download links:
Official download link:
https://www.gov.cn/zhengce/zhengceku/2019-11/05/content_5448919.htm
Application Process #
Online Application #
Some regions offer online application methods.
In-Person Application #
You can go to your local tax department in person to apply.
Certificate Issuance #
