scope of enterprise income tax collection and management of State Taxation Bureau and Local Taxation Bureau

In January 22, State Taxation Administration of The People's Republic of China issued the Notice on the Scope of Tax Collection and Management after the Reform of Income Tax Sharing System (Guo Shui Fa [22] No.8), which divided the scope of enterprise income tax collection and management of State Taxation Bureau and Local Taxation Bureau. This is an important regulation made to adapt to the reform of income tax sharing system, and enterprise income tax is no longer divided according to affiliation and nature of funds. The State Taxation Administration of The People's Republic of China document is as follows:

1. Corporate income tax, personal income tax (including personal income tax from interest on savings deposits) collected and managed by the State Taxation Bureau and the Local Taxation Bureau before December 31, 21, as well as income tax of foreign-invested enterprises and foreign enterprises collected and managed according to the current regulations, will still be collected and managed by the original tax collection and management organs, and will not be changed.

2. since January 1, 22, according to the relevant regulations of the State Administration for Industry and Commerce, the State Taxation Bureau is responsible for the collection and management of enterprise income tax for enterprises that have been registered in industrial and commercial administrative departments at all levels. However, the local tax bureau is still responsible for the collection and management of the following enterprises that have registered for establishment (opening):

(1) Two or more enterprises are merged to form a new enterprise, and the parties to the merger are dissolved, but all the parties to the merger were originally collected and managed by the local tax bureau;

(2) an enterprise newly established due to division, but the original enterprise is managed by the local taxation bureau;

(3) the institution that originally paid enterprise income tax is restructured into an enterprise to register its establishment, but the local taxation bureau is responsible for the collection and management of the original institution.

the enterprise income tax of an enterprise that has gone through the change registration in the administrative department for industry and commerce shall still be collected and managed by the original collection authority.

3. Since January 1, 22, the State Taxation Bureau is responsible for the collection and management of enterprise income tax of institutions, social organizations, law firms, hospitals, schools and other organizations that pay enterprise income tax.

4. Enterprises, institutions and other organizations that have registered with the administrative department for industry and commerce and other administrative departments before December 31, 21, but have not registered with the tax authorities, shall register with the tax authorities on January 1, 22, and their enterprise income tax shall be collected and managed by the State Taxation Bureau and the Local Taxation Bureau respectively according to the original scope of collection and management.

5. Before the end of 21, the debt-to-equity swap enterprises, joint-stock enterprises and associated enterprises in which central enterprises and institutions participated in shares were still collected and managed by the original tax collection and management organs, and no adjustment was made.

VI. Railway transportation (including Guangzhou Railway Group), State Post, China Industrial and Commercial Bank, China Agricultural Bank, China Bank, China Construction Bank, China Development Bank, China Agricultural Development Bank, The Export-Import Bank of China and offshore oil and gas enterprises that do not share income tax shall be collected and managed by the State Taxation Bureau.

VII. Individual income tax (including individual income tax of sole proprietorship and partnership enterprises) other than interest income from savings deposits is still collected and managed by the local tax bureau.

In order to ensure the implementation of State Taxation Administration of The People's Republic of China's regulations, the Municipal State Taxation Bureau and the Municipal Local Taxation Bureau conducted the same research and made the following supplements:

1. Enterprises that were collected and managed by the state or local tax authorities before the end of 21 are still managed by the original tax authorities, and will not be changed until there are new regulations in the country.

2. After January 1, 22, all newly established enterprises that meet the requirements of paragraphs (1), (2) and (3) of Article 2 of the Notice of State Taxation Administration of The People's Republic of China shall be collected and managed by the local tax authorities, and all newly established enterprises shall be collected and managed by the national tax authorities.

3. Enterprises, institutions and other organizations that have registered with the administrative department for industry and commerce or other administrative departments before December 31, 21, but have not registered for tax, shall register for tax after January 1, 22, and their enterprise income tax shall be separately collected and managed by the national or local tax authorities according to the original scope of collection and management. For those enterprises, institutions and other organizations that have not been collected and managed according to the regulations, and those newly established after January 1, 22, the national and local tax authorities of all districts and counties should carefully confirm the scope of collection and management according to the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China, and should go through the transfer procedures before the end of March 22.

iv. for enterprises and other organizations that have gone through the change registration in the administrative department for industry and commerce or other administrative departments, the original tax collection authority is still responsible for the collection and management of their enterprise income tax.

5. The national and local tax authorities shall perform their duties according to the requirements of the Notice of State Taxation Administration of The People's Republic of China. Enterprises that have been registered in the administrative department for industry and commerce and other organizations that have been newly registered in other administrative departments and obtained licenses, which are beyond the provisions of paragraphs (1), (2) and (3) of Article 2 of the Notice of State Taxation Administration of The People's Republic of China, shall be handled in accordance with the following principles:

(1) Enterprise income tax registration shall be handled at the national tax authorities.

(2) For the convenience of collection and management, enterprises newly registered for VAT payment shall be registered for enterprise income tax by the state tax authorities. The local tax authorities shall be responsible for telling the newly registered enterprises to register their enterprise income tax with the state tax authorities.

(3) The national and local tax authorities of all districts and counties shall summarize the information of their newly registered enterprises within the first week of each quarter and inform each other to prevent errors or omissions.

VI. Where an enterprise fails to be managed according to the provisions of the Notice of State Taxation Administration of The People's Republic of China, the national and local competent tax authorities of all districts and counties shall provide supporting materials after discovering it, and take the initiative to coordinate with the other competent tax authorities. After verification and confirmation by the national and local tax authorities, the original competent tax authorities shall handle the transfer procedures and inform the taxpayers within one month.

VII. In view of the new sharing system of enterprise income tax, since January 1, 22, enterprise income tax will no longer be divided into storage proportions according to the nature of funds.

8. Any newly registered enterprise managed by the state tax authorities that meets the current preferential tax policies may apply to the tax authorities, which shall handle it in time.

in addition, in order to correctly understand the meaning of company merger and division, the relevant provisions are introduced.

according to the company law, the merger of a company shall be decided by the shareholders' meeting of the company; The merger of a joint stock limited company must be approved by the department authorized by the State Council or the provincial people's government. Company merger can take two forms: absorption merger and new merger.

merger by absorption refers to the acceptance of one or more enterprises to join the company, the joining party is dissolved and the original legal person qualification is cancelled, and the accepting party survives. A new merger refers to the merger of one or more enterprises to form a new company, and the original merged parties are dissolved and the original legal person qualification is cancelled.

when a company is merged, the merging parties shall sign a merger agreement and prepare a balance sheet and a list of assets. The company shall notify the creditors within 1 days from the date of making the merger resolution, and make an announcement in the newspaper at least three times within 3 days. Creditors have the right to require the company to pay off debts or provide corresponding guarantees within 3 days from the date of receiving the notice, or within 9 days from the date of the first announcement if they have not received the notice. Without paying off debts or providing corresponding guarantees, the company may not merge.

There are four main procedures for merger: (1) signing a merger agreement; (2) Confirmation of creditor's rights and debts; (3) approval; (4) Re-registration.

when a company is merged, the creditor's rights and debts of the merging parties shall be inherited by the surviving company or the newly established company after the merger.

the division of a company means that a company is divided into two or more companies according to law. The form of division is not clearly stipulated in the Company Law. Generally, it should be divided into two types: first, the company establishes a new company with part of its assets and business, and the original company survives; Second, the company is divided into two or more newly established companies with all its property, and the original company is dissolved.

the division of a company shall be decided by the shareholders' meeting, and the merger of a joint stock limited company must be approved by the department authorized by the State Council or the provincial people's government.

the procedure of separation is basically the same as that of merger. It is necessary to sign a separation agreement, clean up property and debts, report to the relevant departments for approval, and go through the formalities of industrial and commercial registration and tax registration. When the company is divided, it shall prepare a balance sheet and a list of assets. The company shall notify the creditors within 1 days from the date of making the resolution of separation, and make an announcement in the newspaper at least three times within 3 days. Creditors have the right to require the company to pay off debts or provide corresponding guarantees within 3 days from the date of receiving the notice, or within 9 days from the date of the first announcement if they have not received the notice. If the company fails to pay off its debts or provide corresponding guarantees, the company shall not be divided.

the debts before the division of the company shall be borne by the company after the division according to the agreement reached.

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