Aug 2009 - TAX Policy

It has been long accepted that under secondment agreements where seconded staff are sent by a foreign company to work in China under the supervision and control of a related Chinese company, the sending foreign company should not be considered as having a permanent establishment ("PE") in China by virtue of the presence of this securities for this staff or pays salaries directly to this staff but obtains full reimbursements without mark-up by the Chinses related company.