Announcement of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation)
Announcement of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation)
Announcement of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation)
Announcement of the State Administration of Taxation [2011] No.45
July 27, 2011
In order to standardize and strengthen the administration of income tax on Chinese-controlled enterprises incorporated overseas which are determined as resident enterprises on the basis of actual management body, the State Administration of Taxation has formulated the Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation). It is hereby issued and will come into effect on September 1, 2011.
Announcement is hereby made.
Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation)
Chapter I General Provisions
Article 1 In order to standardize and strengthen the administration of income tax on Chinese-controlled resident enterprises incorporated overseas, these Measures are formulated in accordance with the Enterprise Income Tax Law of the People's Republic of China (hereinafter referred to as the Enterprise Income Tax Law) and its implementing regulations, the tax collection and administration law of the people's republic of china (hereinafter referred to as the tax collection and administration law) and its implementing rules, Double Taxation Avoidance Agreements concluded by the Government of China with foreign countries (including taxation arrangements concluded with Hong Kong SAR and Macao SAR, hereinafter referred to as taxation agreements), the Circular of the State Administration of Taxation on Issues Relating to the Determination of Chinese-Controlled Enterprises Incorporated Overseas as Resident Enterprises on the Basis of Actual Management Body (Guo Shui Fa [2009] No. 82, hereinafter referred to as the Circular).
Article 2 The term "Chinese-controlled enterprises incorporated overseas (referred to overseas Chinese enterprises" as used herein refers to enterprises incorporated and established by enterprises or enterprise groups from the Mainland of China as the major controlling shareholder in countries or regions outside China(including Hong Kong, Macao and Taiwan).
Article 3 The term "Chinese-controlled resident enterprises incorporated overseas (herein after referred to as non-domestically incorporated resident enterprises)" as used herein refers to Chinese-controlled enterprises incorporated overseas which are determined as Chinese resident enterprises due to the fact that their actual management bodies are in China.
Article 4 Non-domestically incorporated resident enterprises shall, according to the requirements of the Enterprise Income Tax Law, its implementing regulations and relevant management provisions, perform the obligations of resident enterprises to pay income tax and shall, when making payments to non-resident enterprises as provided by Paragraph 3, Article 3 of the Enterprise Income Tax Law, withhold enterprise income tax in accordance with the law.
Article 5 The term "the competent tax authority" as used herein includes:
1. The competent tax authority for enterprise income tax on the major domestic controlling investor if the place where the actual management body of the non-domestically incorporated resident enterprise is located is inconsistent with the place where the major domestic controlling investor;
2. the competent state taxation authority at the place where the actual management body is located if the place where the actual management body of a non-domestically incorporated resident enterprise is inconsistent with the place where the major domestic controlling investor is located; upon the approval of the common tax authority a higher level, an enterprises may also choose the competent tax authority for enterprise income tax on its major domestic controlling investor as its competent tax authority; and
3. If there are several places where the actual management body of a non-domestically incorporated resident enterprise is located, the relevant tax authorities shall request the common tax authority at a higher level to decide the competent tax authority.
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