本地人英文

AnnouncementoftheStateAdministrationofTaxationonPrintingand

DistributingtheAdministrativeMeasuresforIncomeTaxon

Chine-controlledResidentEnterprisIncorporatedOveras(Trial

Implementation)

AnnouncementoftheState

AdministrationofTaxation[2011]

No.45

StateAdministrationofTaxation

Tobeeffective

DocumentNumber

Promulgator

Effectiveness

07-27-2011

NATIONAL

09-01-2011

NewEnterpriIncomeTax(TaxLaw->IncomeTax->NewEnterpriIncomeTax)

PromulgationDate

EffectiveRegion

EffectiveDate

Category

AnnouncementoftheStateAdministrationofTaxationonPrintingandDistributingtheAdministrative

MeasuresforIncomeTaxonChine-controlledResidentEnterprisIncorporatedOveras(Trial

Implementation)

AnnouncementoftheStateAdministrationofTaxation[2011]No.45

July27,2011

InordertostandardizeandstrengthentheadministrationofincometaxonChine-controlled

enterprisincorporatedoveraswhicharedeterminedasresidententerprisonthebasisof

actualmanagementbody,theStateAdministrationofTaxationhasformulatedtheAdministrative

MeasuresforIncomeTaxonChine-controlledResidentEnterprisIncorporatedOveras(Trial

Implementation).ItisherebyissuedandwillcomeintoeffectonSeptember1,2011.

Announcementisherebymade.

AdministrativeMeasuresforIncomeTaxonChine-controlledResidentEnterprisIncorporated

Overas(TrialImplementation)

ChapterIGeneralProvisions

Article1Inordertostandardizeandstrengthentheadministrationofincometaxon

Chine-controlledresidententerprisincorporatedoveras,theMeasuresareformulatedin

accordancewiththeEnterpriIncomeTaxLawofthePeople'sRepublicofChina(hereinafter

referredtoastheEnterpriIncomeTaxLaw)anditsimplementingregulations,thetaxcollection

andadministrationlawofthepeople'srepublicofchina(hereinafterreferredtoasthetaxcollection

andadministrationlaw)anditsimplementingrules,DoubleTaxationAvoidanceAgreements

concludedbytheGovernmentofChinawithforeigncountries(includingtaxationarrangements

concludedwithHongKongSARandMacaoSAR,hereinafterreferredtoastaxationagreements),

theCircularoftheStateAdministrationofTaxationonIssuesRelatingtotheDeterminationof

Chine-ControlledEnterprisIncorporatedOverasasResidentEnterprisontheBasisof

ActualManagementBody(GuoShuiFa[2009]No.82,hereinafterreferredtoastheCircular).

Article2Theterm"Chine-controlledenterprisincorporatedoveras(referredtooveras

Chineenterpris"asudhereinreferstoenterprisincorporatedandestablishedby

enterprisorenterprigroupsfromtheMainlandofChinaasthemajorcontrollingshareholderin

countriesorregionsoutsideChina(includingHongKong,MacaoandTaiwan).

Article3Theterm"Chine-controlledresidententerprisincorporatedoveras(hereinafter

referredtoasnon-domesticallyincorporatedresidententerpris)"asudhereinrefersto

Chine-controlledenterprisincorporatedoveraswhicharedeterminedasChineresident

enterprisduetothefactthattheiractualmanagementbodiesareinChina.

Article4Non-domesticallyincorporatedresidententerprisshall,accordingtotherequirementsof

theEnterpriIncomeTaxLaw,itsimplementingregulationsandrelevantmanagementprovisions,

performtheobligationsofresidententerpristopayincometaxandshall,whenmakingpayments

tonon-residententerprisasprovidedbyParagraph3,Article3oftheEnterpriIncomeTaxLaw,

withholdenterpriincometaxinaccordancewiththelaw.

Article5Theterm"thecompetenttaxauthority"asudhereinincludes:

petenttaxauthorityforenterpriincometaxonthemajordomesticcontrollinginvestorif

theplacewheretheactualmanagementbodyofthenon-domesticallyincorporatedresident

enterpriislocatedisinconsistentwiththeplacewherethemajordomesticcontrollinginvestor;

petentstatetaxationauthorityattheplacewheretheactualmanagementbodyislocatedif

theplacewheretheactualmanagementbodyofanon-domesticallyincorporatedresidententerpri

isinconsistentwiththeplacewherethemajordomesticcontrollinginvestorislocated;uponthe

approvalofthecommontaxauthorityahigherlevel,anenterprismayalsochoothecompetent

taxauthorityforenterpriincometaxonitsmajordomesticcontrollinginvestorasitscompetenttax

authority;and

eareveralplaceswheretheactualmanagementbodyofanon-domesticallyincorporated

residententerpriislocated,therelevanttaxauthoritiesshallrequestthecommontaxauthorityata

higherleveltodecidethecompetenttaxauthority.

Thecompetenttax

reallynecessarytodoso,themattershallbereportedlevelbyleveltotheStateAdministrationof

Taxationforapproval.

ChapterIIDeterminationandManagementofResidentStatus

Article6Thefollowingtwomethodsareudforthedeterminationoftheresidentstatusforoveras

Chineenterpris:applyingfordeterminationbytaxauthoritiesafterapreliminaryjudgmentis

madebytheenterpristhemlvesanddeterminationbytaxauthoritiesuponinvestigationand

discoverybythetaxauthorities.

Article7OverasChineenterprisshall,accordingtotheactualconditionsofproduction,

businessoperationandmanagement,judgebythemlveswhethertheiractualmanagementbodyis

deemthattheymeettheconditionsforresidententerprisspecifiedin

Article2oftheCircular,theyshallawrittenapplicationforthedeterminationofresidentstatustothe

competenttaxauthorityandprovidethefollowingmaterialsatthesametime:

ficateforthelegalstatusoftheenterpri;

iptionoforganizationalstructureoftheenterprigroupandanoverviewofproductionand

businessoperation;

itreportontheenterprifortheprevioustaxyearissuedbyaCPA;

ficatefortheaddressofplacewhereniormanagementbodyresponsibleforproduction,

businessoperationandothermattersoftheenterpriperformsitsduties;

sforthestayofdirectorsandniormanagementofficersoftheenterpriinChinaforthe

currentyearandthepreviousyear;

tionsoftheboardofdirectorsoftheenterprionmajormattersinthecurrentyearandthe

previousyearandminutesoftherelevantmeetings;and

aterialsrequiredbythecompetenttaxauthoritytobeprovided.

Article8IfthecompetenttaxauthoritydiscoversthatanoverasChineenterprimeetsArticle2

oftheCircularbutfailstoapplytobecomeaChineresidententerpri,itmayinvestigatetheplace

wheretheactualmanagementbodyoftheoverasChineenterpriislocatedandrequirethe

oversourof

investigation,thecompetenttaxauthorityhastherighttorequirethedomesticinvestorsofthe

enterpritoproviderelevantmaterials.

Article9Thecompetenttaxauthorityshall,inaccordancewiththelaw,examineandverifyrelevant

materialsprovidedbytheenterpri,givepreliminarydeterminationopinionsandreportrelevant

fact(materials)onwhichthepreliminarydeterminationisbad,reasonsfordeterminationand

resultsofdeterminationlevelbyleveltotheStateAdministrationofTaxationforconfirmation.

IftheStateAdministrationofTaxationdeterminestheresidentstatusofanoverasChine

enterpri,itshallnotifyinwritingthecompetenttaxauthorityforthedomesticinvestorsand

investeesoftherelevantresultsofdetermination.

Article10AfterreceivingtheresultsofdeterminationoftheStateAdministrationofTaxationonthe

residentstatusforanoverasChineenterpri,thecompetenttaxauthorityfornon-domestically

incorporatedresidententerprisshallissueaLetterofDeterminationofResidentStatusfor

Chine-controlledEnterprisIncorporatedOverastotheenterpriandnotifytheenterprito

starttohandlerelevanttaxationmattersinaccordancewiththeprovisionsontheadministrationof

incometaxonresidententerprisinChinaandtheprovisionshereoffromtheyearinwhichthe

residentstatusoftheenterpriisdetermined.

Article11Ifanyofthefollowingmajorchangesoccurstoanon-domesticallyincorporatedresident

enterpri,thechangeshallbereportedtothecompetenttaxauthoritywithin15daysofthedateof

changeandthecompetenttaxauthorityshallreportthesamelevelbyleveltotheState

AdministrationofTaxationtodecidewhetherornottocancelitsresidentstatus:

cewheretheactualmanagementbodyoftheenterpriisrelocatedoveras;or

nsferofequityoftheenterpribytheChinecontrollinginvestorresultsinachangein

thecontrollingpositionoftheChineinvestor.

Article12IftheStateAdministrationofTaxationdeterminestoterminatetheresidentstatusofa

non-domesticallyincorporatedresidententerpri,itshallnotifyinwritingthecompetenttaxauthority

forthederprishall,

fromthedateonwhichthecompetenttaxauthoritygivesthewrittennotification,ceatoperformthe

obligationsofChineresidententerpristopayandwithholdincometaxandshallalsoceato

resaidcompetenttaxauthority

shallproperlyconductthefollow-upmanagementworksuchtherecoveryoftaxdeductionin

accordancewiththelaw.

ChapterIIIAdministrationofTaxRegistration

Article13Anon-domesticallyincorporatedresidententerprishall,within30daysofthedateon

whichtheletterofdeterminationforresidentstatusisreceived,providethefollowingmaterialstothe

competenttaxauthoritytoapplyformakingtaxregistrationandthecompetenttaxauthorityshall

issueatemporarytaxregistrationcertificateanditscopiesafterverification:

terofdeterminationforresidentstatus;

tificateforoverasincorporation;and

aterialsrequiredbythetaxauthoritytobeprovided.

Article14Iftheterminationofresidentstatusforanon-domesticallyincorporatedresidententerpri

isconfirmedbytheStateAdministrationofTaxation,theenterprishall,within15daysofthedate

onwhichthewrittennoticeofthecompetenttaxauthorityisreceived,applywiththecompetenttax

authoritytocanceltaxregistration.

Article15Anon-domesticallyincorporatedresidententerpriwhichincursthewithholdingobligation

specifiedinArticle4hereofshall,within30daysofthedateonwhichthewithholdingobligation

aris,applywiththecompetenttaxauthoritytomakeregistrationforwithholdingtax.

ChapterIVManagementofAccountBooksandVouchers

Article16Anon-domesticallyincorporatedresidententerprishall,inaccordancewiththerelevant

lawsandregulationsofChinaandtheprovisionsofthecompetentfinanceandtaxationdepartments

oftheStateCouncil,preparefinancialandaccountingstatementsandshall,within15daysofthe

dateonwhichthetaxregistrationcertificateisobtained,reportthefinancialandaccountingsystem

orfinancialaccountingtreatmentmethods,andrelevantmaterialstothecompetenttaxauthorityfor

therecord.

Article17AccountbookskeptinChinabyanon-domesticallyincorporatedresidententerpriand

materialssuchasstatementsrequiredbydomestictaxauthoritiestobeprovidedshallbemadein

Chine.

Article18Anon-domesticallyincorporatedresidententerpriwhichincursthewithholdingobligation

shallestablishanaccountbookforwithholdingtaxandanarchiveforcontractdocumentsto

accuratelyrecordtheinformationofwithholdingenterpriincometax.

Article19Ifanon-domesticallyincorporatedresidententerprihasanytransactionswithadomestic

entityorindividual,itshalluinvoicesinaccordancewiththeprovisionsofadministrativemeasures

forinvoicesandtheinvoicestudshallbekeptinChinaforinspectionandexaminationbytax

authorities.

ChapterVAdministrationofTaxDeclarationandCollection

Article20Anon-domesticallyincorporatedresidententerprishalldeclareandpayincometax

accordingtothemethodofprepaymentonaquarterlybasisandttlementonayearlybasis.

Article21Ifanon-domesticallyincorporatedresidententerpriterminatesproductionandbusiness

operationoranychangeoccurstoitsresidentstatus,itshall,within60daysofthedateonwhichits

productionandbusinessoperationisstoppedortheStateAdministrationofTaxationcancelsits

residentstatus,ttleenterpriincometaxwiththecompetenttaxauthority.

Ifanon-domesticallyincorporatedresidententerprineedstoapplytocanceltaxregistration,it

shall,beforecancelingthetaxregistration,declareandpayenterpriincometaxforitsliquidation

incometothecompetenttaxauthority.

Article22Anon-domesticallyincorporatedresidententerprishallcalculateandpayenterpri

incometaxinRMB;ifincomeiscalculatedinacurrencyotherthanRMB,enterpriincometaxshall

becalculatedandpaidbyconvertingthecurrencyintoBRMaccordingtotherelevantprovisionsof

theEnterpriIncomeTaxLawanditsimplementingregulations.

Article23Ifanon-domesticallyincorporatedresidententerprifailstoperformtheobligationsof

residententerpristopayincometaxinaccordancewiththelaw,thecompetenttaxauthorityshall,

inaccordancewiththerelevantprovisionsofTaxCollectionandAdministrationLawandits

implementingregulations,recovertax,collectlatefeesandimpoafine.

Thecompetenttaxauthorityshall,within2monthsafterthenon-domesticallyincorporatedresident

enterpricompleteannualdeclarationandttlement,judgewhetherornotconditionswhichare

ctualmanagementbodyis

relocatedoverasorthecontrollingpositionoftheChineinvestorintheenterpriischanged,

thecompetenttaxauthorityshallmakeareportlevelbyleveltotheStateAdministrationofTaxation

toterminateitsresidentstatus.

IfanoverasChineenterprifrequentlychangesitnterpristatuswithoutanyjustified

reasons,thecompetenttaxauthorityshall,aftermakingareportlevelbyleveltotheState

AdministrationofTaxationforapproval,recoverthetaxexemptedfordividendswhichareenjoyedby

theenterpriasaresidententerpri.

Article24Thecompetenttaxauthorityshall,onaquarterlybasis,checktheenterpriincometax

withheldfordividends,interest,rents,royalties,propertytransferincomeandotherincomeinwith

accordancewiththelawwhicharepaidbyanon-domesticallyincorporatedresidententerprito

nonresidententerpriandifthecompetenttaxauthoritydiscoversthattheenterprifailsto

performtherelevantwithholdingobligationinaccordancewiththelaw,itshallpunishtheenterpri

inaccordancewiththerelevantprovisionsoftheTaxCollectionandAdministrationLaw,its

implementingrules,theEnterpriIncomeTaxLaw,anditsimplementingregulationsandrecover

taxfromthenon-residententerpri.

ChapterVIIManagementofSpecificMatters

Article25Fordividends,bonusandotherequityinvestmentincomeaswellasinterest,rents,

royalties,propertytransferincomeandotherincomeobtainedbyanon-domesticallyincorporated

residententerprifromChina,itshallissueaduplicatedcopyofitsLetterofDeterminationof

ResidentStatusforChine-controlledEnterprisIncorporatedOverastotherelevantpayers.

Therelevantpayersmay,onthestrengthoftheaforesaidcopy,befreefromperformingthe

obligationtopaytaxforsuchincomeandshall,onthestrengthofthesaidcopy,applywiththe

competenttaxauthorityfortheissuanceofrelevanttaxcertificateswhenpayingtheaforesaidforeign

aymentofindividualincometax,businesstaxandothertaxisinvolved,the

mattershallbehandledaccordingtotherelevantprovisionsontheissuanceoftaxcertificatefor

externalpayments.

Article26Becauincomeobtainedfromthetransferofanon-domesticallyincorporatedresident

enterpribyanon-residententerpriisincomefromChina,thenon-domesticallyincorporated

residententerprishall,within30daysofthedateonwhichtheequitytransferagreementis

concluded,reportthesametothecompetenttaxauthorityandprovidetheequitytransferagreement

andrelevantmaterials.

Article27Anon-domesticallyincorporatedresidententerprishall,inaccordancewiththe

EnterpriIncomeTaxLawanditsimplementingregulationsaswellastherelevantprovisionsofthe

ImplementationMeasuresforSpecialTaxAdjustments(TrialImplementation)(GuoShuiFa[2009]

No.2),performtheobligationsofmakingconnecteddeclarationandpreparingcontemporaneous

documents.

Article28Ifanon-domesticallyincorporatedresidententerpriisconfirmedasataxresidentbythe

taxauthoritiesofChinaandthecountry(region)inwhichitisincorporated,itsresidentstatusshallbe

determinedinaccordancewiththerelevantprovisionsofthetaxtreatyconcludedbythetwo

countries;ifitisdeterminedasataxresidentofChina,itshallbesubjecttothetaxtreatyconcluded

byChinawiththecountry(region)inwhichitisincorporatedandgothroughtheproceduresfor

preferentialtreatmentunderthetaxtreatyinaccordancewiththerelevantprovisions;ifitis

necessarytoproveitstaxresidentstatusofChina,itmayapplywiththecompetenttaxauthorityfor

theissuanceoftheCertificateforTaxResidentStatusofChinaandthecompetenttaxauthority

shall,within10workingdaysofthedateonwhichtheapplicationisaccepted,completetherelevant

matters.

Article29Iftheoverastaxauthorityrefustograntthetaxtreatytreatmenttoanon-domestically

incorporatedresidententerpriordeterminesitasataxresidentofthecountry(region)inwhichitis

incorporated,theenterprimay,inaccordancewiththerelevantprovisions,submitawritten

applicationforthestartofmutualconsultationprocedurefortaxationaffairs.

Afteracceptingtheapplicationforconsultationsubmittedbytheenterpri,thecompetenttax

authorityshallsubmitlevelbyleveltheapplicationandrelevantmaterialstotheStateAdministration

teAdministrationofTaxationshallconductconsultationswiththetaxauthorityof

therelevantcountry(region).

ChapterVIISupplementaryProvisions

Article30Thecompetenttaxauthorityshallproperlycarryoutthecollectionandstatisticalworkfor

theadministrationofincometaxonnon-domesticallyincorporatedresidententerprisandshall,

beforeAugust15eachyear,reportlevelbyleveltheSummaryFormfortheAdministrationofIncome

TaxonChine-controlledResidentEnterprisIncorporatedOverastotheStateAdministration

ofTaxation.

TheStateAdministrationofTaxationshall,onanadhocbasis,inspecttherelevantadministration

workinallregionsandnotifytheregionsoftheinspectionresults.

Article31TheStateAdministrationofTaxationshallberesponsibleforinterpretingtheMeasures.

TheofficesoftheStateAdministrationofTaxationandlocaltaxationbureausinallprovinces,

autonomousregions,municipalitiesdirectlyundertheCentralGovernmentandcitiesspecifically

designatedinthestateplanmayformulatespecificoperationalrulesonthebasisoftheMeasures.

Article32TheMeasuresshallcomeintoeffectonSeptember1,erpriswhichhave

beendeterminedasanon-domesticallyincorporatedresidententerpriinaccordancewiththe

provisionsoftheCircularshallbesubjecttotherelevantprovisionsoftheMeasures.

2011LexisNexis,htsrerved.