Circular of the State Administration of Taxation on Issues concerning the Collection and Administration of Consolidated Payments of Enterprise Income Tax by Trans-regional Enterprises

Circular of the State Administration of Taxation on Issues concerning the Collection and Administration of Consolidated Payments of Enterprise Income Tax by Trans-regional Enterprises

Guo Shui Han [2009] No. 221

April 29, 2009

To the state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan:

For the purposes of implementing theLaw of the People's Republic of China on Enterprise Income Tax and the implementing regulations thereof, strengthening the collection and administration of consolidated payments of enterprise income tax by trans-regional enterprises (enterprises active across different provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, the same applies hereafter), certain issues concerning the collection and administration of consolidated payments of enterprise income tax by trans-regional enterprises are hereby explained as follows:

I. Issue on the Determination of a Secondary Branch
A Secondary Branch shall refer to a branch whose finance, business, personnel and other matters are subject to the unified verification and management of the head office and who holds a non-legal person business license.
Head offices shall submit a list of their subordinate secondary branches to their local competent taxation authority in a timely manner and issue valid certificates to such branches (supporting materials for the certificate shall include certification of head office allocations of funds, agreements or contracts between the head office and its branches, articles of association, management system documentation, etc.) without delay.
When going through taxation registration, a secondary branch shall submit its non-legal person business license (a copy thereof) and the valid certificate issued by the head office to its local competent taxation authority.
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