Notice 19 comes into effect on June 1, 2013 and also applies to existing detachments for which tax treatment has not been confirmed or for which reimbursement has not been made. It is proposed that companies assess the tax impact of Communication 19 on their current detachments and consider, if necessary, restructuring the international allocation agreement and establishing appropriate documentation to preserve the parent company`s tax position and reduce tax risks in the CPP. In early July 2009, the International Department of Tax Administration of China (SAT) issued an internal tax circular, Ji Bian Han  No.103, entitled Communication on the Inspection of Corporate Income Tax Revenue Collection on the provision of services provided by foreign companies to domestic companies through a support agreement (Communication 103). Opinion 103 requires local tax authorities to carry out a specific national tax audit for cross-border secondment schemes. On April 19, 2013, the State Tax Administration (SAT) issued the Notice on Business Income Tax Issues on Services Provided by Non-Resident Enterprises by the Staff Detachment in China (“Advertisement 19”), which provides clearer guidance on the criteria for determining whether the home entity will constitute a taxable presence or MOU in China as part of a secondment agreement. Communication 19 is based on the Guoshuifa tax circle  No. 75 (Circular 75) and is an evolution in the evaluation of the EP for international detachment to China. If the home entity is a taxable presence or PE in China (with the exception of the Individual Income Tax (IIT) that normally applies to the Second, the EIT is subject to the EIT. This new policy will have a significant impact on the tax costs of host institutions and on the model of the structuring of international orders. Tax authorities in the People`s Republic of China have aggressively targeted foreign companies doing business in China to ensure that they tax their income and pay taxes in China. Foreign companies should expect tighter control and enforcement.