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China - Register for Enterprise Income Tax

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Procedure[edit]

Every company has to register with both the SAT and the local tax bureau, and Customs as required. Given the complexity of the taxation structure, tax regulations can be interpreted in different ways by different offices and officials, even among the different districts of the same city. Different offices in different regions may have different interpretations towards tax regulations released by the central government, and their implementation efforts may vary. Check with local tax administrations or reputable service providers for the latest tax policy in the location where you are based.

Foreign companies seeking to provide any of the aforementioned international transportation services to Chinese counterparties are required to register with the local tax authority within 30 days after signing any transportation agreement. In the event that the foreign company has operations in more than one Chinese port, they will be entitled to select which port they wish to register with.

Various documents need to be presented to the tax authority, including a Certificate of Operating Qualifications, together with any agreements related to the services and local contact details of the foreign company.


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Required Documents[edit]

  • An industrial and commercial business license or other similar permit of business operation
  • A contract, agreement and articles of association
  • The unified organizational code
  • The ID card, passport or other valid ID certificate of the legal representative, or responsible member of owner
  • Other documents and information demanded by the tax authorities of a province, autonomous region or municipality directly under the State Council



Office Locations & Contacts[edit]

State Administration of Taxation
Address: Yangfangdian Road, Haidian District, on the 5th
Zip: 100038
Tel: 010-63417114
Website: http://www.chinatax.gov.cn

State Administration for Industry and Commerce People's Republic of China
Address: 8 Sanlihe Donglu, Xichengqu, Beijing, 100820, P. R. China
Phone: +86-10-68010463/68013447
Facsimile: +86-10-68010463/68013447
Email: [email protected]
Contact
Address


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Eligibility[edit]

Enterprises are classified into resident and non-resident enterprises.

The term "resident enterprise" as mentioned in the present Law means an enterprise which is set up under Chinese law within the territory of China, or set up under the law of a foreign country (region) but whose actual management organ is within the territory of China.

The term "non-resident enterprise" as mentioned in the present Law means an enterprise which is set up under the law of a foreign country (region) and whose actual management organ is not within the territory of China but who has organs or establishments within the territory of China, or who does not have any organ or establishment within the territory of China but who has incomes sourced in China.



Fees[edit]

Explain the fees structure which is required for obtaining the certificate/document.



Validity[edit]

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever



Documents to Use[edit]

Please attach documents that can be used by people. e.g. links



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Sample Documents[edit]

Please attach sample completed documents that would help other people.



Processing Time[edit]

Please explain processing time taken in obtaining the document/certificate.



Related Videos[edit]

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	



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Instructions[edit]

The administration of the collection of enterprise income taxes shall be governed by the Law of the People's Republic of China on the Administration of Tax Collection in addition to this Law.

Unless it is otherwise provided for in any tax law or administrative regulation, the tax payment place of a resident enterprise shall be the registration place of the said enterprise. But if its registration place is outside China, the tax payment place shall be the place where its office of actual management is located.

A resident enterprise that has established an operational institution that has no legal person status in China shall calculate and pay its enterprise income taxes on a consolidated basis.

For its incomes sourced from both inside and outside the territory of China, a resident enterprise shall pay the enterprise income tax.

In case a non-resident enterprise sets up an organ or establishment within the territory of China, it shall pay enterprise income tax on its incomes sourced inside the territory of China and incomes sourced outside the territory of China but actually connected with the said organ or establishment.

In case a non-resident enterprise has no organ or establishment within the territory of China, or its incomes have no actual connection to its organ or establishment inside the territory of China, it shall pay enterprise income tax on the incomes sourced inside the territory of China.



Required Information[edit]

  • The name and the number of the ID card, passport or other valid ID document of the institution, legal representative or owner
  • The residence or business address
  • The type of registration
  • The accounting system
  • The form of production and business operation
  • The scope of production and operation
  • The total amount of capital (fund), investment
  • The term of production and operation
  • The name and telephone number of the financial chief
  • Other information specified by the State Administration of Taxation

An enterprise's total income amount refers to the monetary and non-monetary incomes from various sources and includes: (1) income from selling goods; (2) income from providing labor services; (3) income from transferring property; (4) equity investment gains, such as dividend, bonus; (5) interest incomes; (6) rental income; (7) royalty income; (8) income from accepting donations; and (9) other incomes.


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Need for the Document[edit]

The enterprises and other organizations which have incomes (hereinafter referred to as the enterprises) within the territory of the People's Republic of China shall be payers of the enterprise income tax and shall pay their enterprise income taxes according to the present Law.

The sole individual proprietorship enterprises and partnership enterprises are not governed by the present law.



Information which might help[edit]

The following incomes included in the total amount of incomes shall be tax-free incomes:

  • The appropriations from the treasury;
  • The administrative fees and the governmental funds that are charged according to the law and fall under the treasury administration; and
  • Other tax-free incomes as prescribed by the State Council.


Other uses of the Document/Certificate[edit]

It encourages the relevant tax authorities to increase their surveillance of non-resident enterprises operating in Chinese ports to ensure that such foreign companies have fulfilled their tax obligations. It also allows for the escalation of such enquiries to the State Administration of Taxation who will then authorize further investigation into any company thought to be in breach of the regulations. Non-resident taxpayers obliged to pay EIT should therefore carefully monitor their responsibilities under the Notice and seek legal advice before entering into transportation services agreement with Chinese entities.


External Links[edit]

Enterprise Income Tax Law of the People's Republic of China

State Administration for Industry and Commerce People's Republic of China

State Administration of Taxation of The People's Republic of China

Ministry of Commerce, the People's Republic of China

Tax Law

State Administration of Taxation



Others[edit]

An enterprise shall, within 15 days after the end of a month or quarter, submit to the tax organ an enterprise income tax return for advance payment and pay the tax in advance.

An enterprise shall, within 5 months after the end of each year, submit to the tax organ an annual enterprise income tax return for the settlement of tax payments and settle the payable or refundable amount of taxes.

When an enterprise submits an enterprise income tax return, it shall attach to it the financial statements and other relevant materials according to the relevant provisions.