Circular of the State Administration of Taxation on Printing and Distributing the Operating Procedures for the Final Settlement of Enterprise Income Tax on Non-resident Enterprises

Circular of the State Administration of Taxation on Printing and Distributing the Operating Procedures for the Final Settlement of Enterprise Income Tax on Non-resident Enterprises

Guo Shui Fa [2009] No. 11

February 9, 2009

State taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under state planning, and local taxation bureaus of Guangdong Province and Shenzhen Municipality:

We hereby print and distribute the Operating procedures for The Final Settlement of Enterprise Income Tax on Non-resident Enterprises to you, please comply with and implement them. If any problem is found during the implementation, please timely report it to the State Administration of Taxation (International Tax Department).

Operating Procedures for the Final Settlement of Enterprise Income Tax on Non-resident Enterprises

These Rules are formulated for the purposes of implementing the Notice of the State Administration of Taxation on Printing and distributing the Circular of the State Administration of Taxation on Printing and Distributing the Administrative Measures for the Final Settlement of the Enterprise Income Tax of Non-Resident Enterprises (Guo Shui Fa [2009] No. 6), standardizing the work to be carried out by tax organs, of the final settlement of enterprise income tax on non-resident enterprises and improving the quality of the work of the final settlement.

I. Contents of the work of the final settlement
The final settlement of enterprise income tax on non-resident enterprises consist of two parts: one is that the non-resident enterprises (hereinafter referred to as the enterprises) shall firstly adjust and calculate by themselves the amounts of actual taxable income and the amounts of actual payable income tax of the current year, and verify the tax amounts of income tax that shall be made up or refunded; the other is that the taxation organ-in-charge shall carry out examination and verification on the statements and other related materials submitted by enterprises, send notices on matters regarding the final settlement, handle the work of supplementing and refund of income tax each year, and consolidate materials concerned, analyze all the conditions and summarize the work.

II. Process of the work of the final settlement
The work of the final settlement of enterprise income tax shall consist of three different stages, which are preparation, implementation and summary. The main contents and terms of the work of each stage shall be as follows:
1. Preparation Stage. The tax organ-in-charge shall, within 3 months as of the date the year ends, complete the following preparatory work:
(1) Announcement and guidance.
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