The State Administration of Taxation ("SAT") has recently issued the Tax Return of the People's Republic of China for the Monthly (Quarterly) Prepayment of Enterprise Income Tax (Category A, 2018 Version) and the Monthly (Quarterly) Enterprise Income Tax Prepayment and Annual Enterprise Income Tax Return of the People's Republic of China (Category B, 2018 Version) (collectively as the "Tax Return"), both of which will take effect from July 1, 2018.
The Tax Return introduces improvements in the following respects. First, the design of the revised tax return is simplified, with data items cut by over 65 percent. Second, the structure of the revised tax return is optimized and the method to fill out the tax return is adjusted, consolidating the same rows in the old-fashioned tax return (2015 Version) and incorporating the Breakdown on the Income Tax Apportioned to Each Branch under the Mode of Consolidated Enterprise Income Tax Declaration, as a schedule, into the Tax Return. Third, filing information requested is improved, adding new rows to and adjusting existing rows in the Tax Incentive Breakdown on Tax-exempt Income, Income Reduction and Income Deductions (A201010), the Tax Incentive Breakdown on Income Tax Relief (A201030) and other sheets, with extra identity information and additional filing information, such as the prepayment methods and types of enterprises.