Although foreign resident representative offices (foreign representative offices) cannot engage in business activities and have no corresponding income, they must also pay taxes according to the expenses and costs incurred by the representative offices.

In addition, the Shanghai Representative Office also needs to fill in the Annual Tax Return of Non-resident Enterprise Income Tax in People's Republic of China (PRC) every year for the final settlement of enterprise income tax.

Generally speaking, the corporate income tax settlement of representative offices of foreign-funded enterprises needs to be entrusted to finance companies, and the tax returns should be submitted at the time specified by the tax bureau.

legal ground

There are two ways, one is 8% consumption tax, and the other is to pay taxes according to total income. 1. Self-operated trade is tax-free.

The resident representative office only conducts preparatory and auxiliary activities such as liaison and negotiation and business information collection for its head office. If the head office directly signs commodity trade contracts with enterprises in China, and can provide commodity purchase contracts signed between the head office and production enterprises in China and invoices for sales of commodities by the head office to enterprises in China, with the approval of the local tax authorities, the income from the difference between the purchase and sale of commodities and other income obtained by the head office can be exempted from tax.

2. Determination of taxable income when the head office and representative office engage in agency business.

The resident representative office can provide relevant information and vouchers to prove that part of its agency business is carried out outside China by its head office, and with the approval of the local tax authorities, its tax payable in China can be temporarily verified according to 50% of its income.

3. Special provisions on advertising agency business

If the resident representative office engaged in advertising agency is engaged in agency business, and the amount of service fee is not clearly stipulated in the contract and agreement, and the taxpayer cannot provide accurate supporting documents to prove the actual amount obtained, 15% of the turnover of the contract and agreement can be regarded as the income that the representative office should temporarily obtain.

Expenditure that should be included in the funds of representative offices.

1. paid to employees inside and outside China.

(1) Wages, salaries, allowances and welfare expenses

(2) Commodity purchase fee

(3) Communication fee

(4) Travel expenses

(5) Rent

(6) Equipment rental fee

(7) Transportation expenses

(8) Communication expenses

Note: The signature documents of the head office and certified public accountants are required for overseas expenditures.

2. The following expenses paid by institutions in China for the head office:

(1) The sample fee and transportation fee paid by the head office for purchasing samples from China;

(2) Storage expenses and customs declaration expenses incurred when foreign samples are transported to China;

(3) Translation fees for visitors from the head office in China;

(four) the expenses paid by the representative office for purchasing the project bidding of the head office in China;

(5) The head office delegation comes to China for business negotiation or signing a contract.

Fees paid by the representative office.

3. The deposit interest income of the representative office shall not offset the expenditure.

All expenses and expenses allowed to be deducted

1. The rebate income obtained by the resident representative offices of foreign enterprises engaged in intermediary services in China may be allowed to be charged to the domestic enterprises before tax if it is stated in the contract that the income will be collected by the resident representative offices and domestic enterprises respectively, and relevant documents and vouchers can be provided.

2. The following expenses paid by the resident representative office for the head office:

(1) Personnel expenses paid in advance by the resident representative office at the invitation of the head office;

(2) Food, accommodation, transportation and social entertainment expenses paid by the permanent representative office in China when the delegation organized by the head office visits China. However, it does not include the above-mentioned expenses paid in advance for the business negotiation or signing of the delegation in China;

(3) When the head office holds large-scale exhibitions in China, there are exhibition fees, sample tariffs, domestic transportation fees and other related expenses prepaid by the representative office;

(four) the rental of the conference venue paid by the representative office for the seminar held in China, which has nothing to do with business negotiations or the signing of trade contracts;

(5) The head office needs to register the sales of some special commodities to China according to the relevant laws and regulations of our country, but the registration fee paid by the representative office on behalf of the manufacturer and the advertising fee paid by the representative office in China for other companies other than its head office can not be regarded as the expenses of the representative office if it can provide proof that the manufacturer has repaid the advance payment;

(6) Trade compensation paid by the representative office for violating the contract signed by the head office and the relevant departments in China;

(seven) the deposit and deposit paid by the head office in China for the tools brought into China for providing labor services in China.

3. Late fees and fines for various taxes of representative offices may not be included in expenditures.