Newsletter-No8

DELIBERATION ON TAXATION
稅 務 研 究
Taxation Considerations of Subsidiaries
and Branches in China
在 中 國 , 子 公 司 和 分 公 司 的 稅 務 考 量
Along with bigger business scale, enterprises often need to establish
subsidiaries or branches for the sake of business expansion. Subsidiaries have
corporate capacity, and status of independent accounting and self-financing;
and branches which do not have corporate capacity are the branches or
affiliates of the headquarters established for business operations. In the market
with more fierce competition, comprehensively evaluating taxation features for
different organisations and structures can help the enterprises relieve tax
burdens in line with the circumstances.
Taxation Managements of
Subsidiaries and Branches
Income tax and value-added tax of
enterprises are currently the 2 major
taxes paid by the Chinese enterprises.
In the aspect of taxation management,
different approaches are respectively
applicable to the subsidiaries and
branches, as specified below:
Enterprise Income Tax
Referring to the Enterprise Income
Tax Law, subsidiaries should
calculate the amount of payable tax
independently and pay the
enterprise income tax at their place
of registration. The information of
approval and filing matters related
to enterprise income tax have to be
collected by the subsidiaries and
declared to the local tax department.
子 公 司 和 分 公 司 的 稅 務 處 理
企 業 所 得 稅
CONPAK NEWSLETTER
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