Corporate income tax rate

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					Corporate income tax rate

The resident representative Interim Measures for Tax Administration

In order to regulate the first permanent representative offices of foreign enterprises tax
management, according to "The People's Repub lic of China on
Tax Collection and Administration Law" (hereinafter referred to as the Tax
Administration Law) and its Implementing Rules, "The People's
Republic of China Enterprise Income Tax Law" and its implementing
regulations, "Journal of Interim Regulations on People's
Republic of business tax "and its Implementing Rules," The
People's Republic of China Interim Regulations on Value Added Tax
"and its Implementing Rules and the relevant tax laws and regulations
The term of the second foreign representative institutions, pursuant to relevant State
Council regulations, in the industrial and commercial administration registration or
authorized by relevant authorities set up in China by a foreign enterprises (including
Hong Kong, Macao and Taiwan enterprises) and other organizations Chang resident
representative (hereinafter referred to as representative). ?
Article representative shall report on their ownership of income shall pay enterprise
income tax on its taxable income declared by law to pay business tax and VAT. ?
Article representative shall obtain the business registration certificate (or relevant
departments for approval) within 30 days from the date of holding the following
information to the local competent tax authorities for tax registration:?
(A) a copy of business license or approval of the competent department and a copy of
the original documents;?
(B) the organization code certificate copy of the original and copy;?
(C) Registered address and business address (certificates of title, lease agreement)
original and photocopy; like to own property, property right certificate should be
provided or the property sale and purchase agreement and other legal proof of the
original and photocopy; the case of leased place, should provide originals and copies
of lease agreement, how to register a person's Limited, the lessor is a
natural person shall also provide proof of original and copy of property rights;?
(4) Representative (responsible person) passports or other legal identification
documents and a copy of the original;?
(E) the establishment of representative offices of foreign enterprises documents and
the relevant resolutions of the establishment in China's other representative
list of organizations (including name, address, contact Representative name, etc.);?
(Vi) the tax authorities require additional information. ?
Article contents of tax registration on behalf of institutio nal change, or in the period,
early termination of the business activities shall be in accordance with the Tax
Administration Law and relevant regulations, to the competent tax authority to apply
for change of registration or cancellation of registration; representative shall apply for
cancellation of registration before , the proceeds of its liquidation report to the
competent tax authorities and pay enterprise income tax law. ?
Article VI should be represented in accordance with the relevant laws, administrative
regulations and the financial and tax authorities of the provisions set books, according
to the legal, valid certificate account, for accounting, and shall perform the functions
and the actual risk than the principle of matching and accurately calculate their
taxable income and taxable income in the quarter ending 15 days from the date of IRB
to the competent tax authority to pay corporate income tax, business tax, and in
accordance with "The People's Republic of China Interim
Regulations on Value Added Tax" and its Implementing Rules provides tax
period, the Hong Kong industrial and commercial registration of individual retail
investors were limited to Chinese nationals in Hong Kong, to the competent tax
authorities and truly declare VAT. ?
Article VII of the book is not perfect, is not an accurate accounting of income or costs
and the lack of measures in accordance with Article VI of the IRB representative
bodies, tax authorities have the right to take the following two ways approved of its
taxable income:?
(A) of the conversion from the expenditure: apply to be able to accurately reflect the
expenses but it can not accurately reflect the revenues or costs of representation. ?
1. The formula is:?
Income Amount = the amount of current period expenses / (a deemed profit business
tax rate);
Company income tax payable = income margin × × approved enterprise income tax
rate. ?
2. The amount of expenses on behalf of institutions, including: in China, outside the
wages paid to staff salaries, bonuses, allowances, fringe benefits, materials
procurement costs (including automotive, office equipment and other fixed assets),
communication costs, travel, rent , equipment rental fees, transportation expenses,
communication expenses and other expenses. ?
(1) expenditures incurred in the acquisition of fixed assets, as well as the
establishment of representative offices, or when the removal occurred because the
decoration expenses, should occur once the amount converted as income tax expenses,
Shenzhen, changes in capital increase registered capital. ?
(2) the amount of interest income may not offset expenses; occurred entertainment
expenses to the amount of actual amount charged to expenses. ?
(3) within the form of money used in our public welfare, charity donations, late fees,
fines, and advances to its head office outside business activities of its own costs
incurred, should not be an expenditure on behalf of funding agencies; ?
(4) Other costs include: the head office in China to buy samples from the sample fee
paid and transportation costs; foreign samples occurred in China to China's
storage costs, customs fees; head office staff to visit China to employ the cost of
translation; China, a project head for the tender by the representative to pay the cost of
the purchase tender, and so on.
(B) the total income of taxable income amount: apply to be an accurate reflection of
income but can not accurately reflect the cost of the representative body. The formula
Company income tax payable = total income margin × × approved enterprise income
tax rate. ?
Article VIII of the authorized representative should not be less than 15% profit margin.
Approach to verification collection of representative institutions, such as to establish
and improve accounting books and accurately calculate their taxable income and
taxable income reported to tax authorities for the record, adjusted for the IRB
approach, Shenzhen M & A restructuring of domestic assets. ?
Article representative occurred VAT taxable business tax act, shall be in accordance
with the VAT and sales tax payable is calculated and paid the relevant tax laws. ?
Article on behalf of institutions need to enjoy the tax treaty treatment should be in
accordance with tax treaties and the "State Administration of Taxation
issued <Non-resident treatment under management (tentative)>
Notice" (Guo Shui Fa 〔2009〕 No. 124) of the relevant provisions of the
processing, and should be in accordance with the provisions of Article VI of this
method time limits apply for tax reporting matters. ?
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