CHINA – Don’t forget the Corporate Income Tax

Published On - 31 mai, 2017

orbis-admin China, Actu Orbis

As of the 1st April 2017, every year end up to June of the following year, all companies in China will need to declare their accounting and taxation through the online software known as Golden Tax 3 => CIT (Corporate Income Tax) FILING.

In the first year of implementation, the appointed accountant for the job should complete the accounting and tax filing for 2016 by the end of June 2017. While the declaration will include the following:

  • Balance Sheet;
  • Profit and Loss Statement;
  • Accounts Receivable and Payable for Affiliated Enterprises;
  • Accounts Receivable and Payable for Non-Affiliated Enterprises;
  • Fixed Assets;
  • Intangible Assets;
  • Cash Flow;
  • Value-Added Tax;
  • Surcharges of the Value-Added Tax;
  • Individual Income Tax;
  • Social Insurance and Housing Fund for Employees;
  • Equities; and
  • Enterprises Income Tax.

The declaration will be mainly based on the Annual Audit Report.

 

                        ! A reminder for our readers who have a foreign company in China !

As an example, please find the official announcement of the introduction to the CIT FILING requirement for foreign invested enterprises in Shanghai which officially launched on the 1st April 2017:

According to《The Notice of the Ministry of Commerce, Ministry of Finance, General Administration of Taxation, AQSIQ and Bureau of Statistics on the Joint Report on the Annual Investment and Operation Information of Foreign-invested Enterprises in 2017 (Business Letter [2017] No. 130), the Joint Report on Annual Investment and Operation Information of Shanghai Foreign Investment Enterprises in 2017 (hereinafter referred to as the Joint Annual Report) will be officially launched on April 1, and the relevant points will be announced as follows:

  1. A foreign-invested enterprise established and registered in accordance with the law in the administrative region of Shanghai shall, within the period from April 1 to June 30, 2017, log on the « Joint Report and Sharing Application for Investment and Investment Information of Foreign Investment Enterprises » (http://lhnb.mofcom.gov.cn/), fill in the 2016 annual investment business information. The relevant data will be shared between the city’s business, finance, taxation, quality and technical supervision (market supervision and management), and statistical departments.

The foreign-invested enterprises established after January 1 2017, will complete the information on the investment and operation of the enterprises from the next year (2018).

  1. To participate in the joint annual report of the list of foreign-invested enterprises and enterprises to complete the investment information, according to the « Enterprise Information Publicity Provisional Regulations » (State Council Decree No. 654) should be public to the public, will be « National Foreign Investment Enterprises Annual Investment Information Joint Report Information Publicity Application « (http://lhnbgs.mofcom.gov.cn/).

Attachment: « Ministry of Commerce Ministry of Finance Tax Administration General Administration of Quality Supervision, Inspection and Quarantine on the implementation of 2017 foreign investment enterprises annual investment information on the joint report of the notice »

 

By Dennis Shing, ORBIS China