Answers to corporate income tax-related questions from Deputy Director-General Miao Huipin of the State Administration of Taxation (1) are the answers to corporate income-tax-related questions from Deputy Director-General Miao Huipin of the Income Tax Division of the State Administration of Taxation on April 24, 2009. As far as I know, the payment of corporate income tax by construction companies when operating outside the country has not yet been introduced. I don’t know if you are talking about the “Interim Measures for the Collection and Administration of Corporate Income Tax on Consolidated Taxation for Cross-Regional Operations”? This was promulgated on March 10, 2008, but it did not solve the income tax issue for construction companies working in other places.

If a construction and installation enterprise leaves the place of industrial and commercial registration or the place of operation and management (hereinafter referred to as the location) to carry out construction in areas outside the county (district), it should apply to the competent tax authority in its location to issue a tax administration for outbound business activities. Certificate (hereinafter referred to as the out-of-home business certificate), the business income shall be levied income tax by the local competent tax authorities. Otherwise, income tax will be levied on-site by the competent tax authority at the construction site of the enterprise's project (hereinafter referred to as the construction site).

According to the answers to questions related to corporate income tax (1) by Miao Huipin, deputy director of the State Administration of Taxation,

[Netizen 50362] Under the new corporate income tax law, construction companies working abroad are required to There are no clear regulations on income tax, and in actual management, tax authorities (in some places, government departments) manage this differently. I would like to ask Director Miao: When a construction enterprise undertakes highway project construction in other places (without setting up a branch at the construction site or obtaining a branch business license), if the construction enterprise holds a tax management certificate for overseas business activities issued by the competent tax authority in the place where its legal person company is located, , will the tax authorities at the construction site still collect income tax from the enterprise? If it is levied, will the provisions of Guo Shui Han [2008] No. 747 on corporate income tax collection and management for cross-regional operations be implemented? If the project construction site is in another city or county in the same province other than where the company's legal person is located, and the province has not promulgated relevant regulations on the tax management of the head office and branch offices, who will collect the income tax? If the collection is by verification or by audit ?

[Miao Huipin] The issue of corporate income tax paid by construction companies when operating outside the country is relatively complicated. Under the framework of the new Corporate Income Tax Law, we are working hard to study and clarify this issue. Before the new tax collection regulations are officially promulgated, they will still be implemented in accordance with the "Notice of the State Administration of Taxation on the Location of Income Tax Payment for Construction and Installation Enterprises" (Guo Shui Fa No. 1995227).

Attachment:

Notice of the State Administration of Taxation on the location of income tax for construction and installation enterprises

Guo Shui Fa [1995] No. 227

1995-12-6

According to the relevant provisions of the "Tax Collection and Management Law of the People's Republic of China" and its implementation rules, the issue of the location of income tax payment for construction and installation enterprises is hereby notified as follows:

1. If a construction and installation enterprise leaves the place of industrial and commercial registration or the place of operation and management (hereinafter referred to as the location) to carry out construction in areas other than the county (district), it should apply to the competent tax authority in its location for the issuance of a tax management certificate for outbound business activities ( (hereinafter referred to as out-of-home business license), their business income shall be levied income tax by the local competent tax authorities. Otherwise, income tax will be levied on-site by the competent tax authority at the construction site of the enterprise's project (hereinafter referred to as the construction site).

2. A construction and installation enterprise applying for the issuance of an out-of-town business license must meet the following conditions:

(1) Notice of winning the bid;

(2) Signed by Party A and Party B Construction contract;

(3) Construction permit or start-up report;

(4) Construction team of this system. After receiving the application from the enterprise, the local tax authority shall promptly fill in and issue an out-of-town business license upon verification.

3. After arriving at the construction site, a construction and installation enterprise holding an out-of-home business license should submit the tax registration certificate (copy) and out-of-home business certificate to the competent tax authority at the construction site, and successively provide the local competent tax authority with the certificate. A tax payment certificate showing the progress of completion or the amount of work completed based on which the income tax payable is calculated. After receiving the above information, the tax authority at the construction site will register it after verification and will no longer issue a tax registration certificate. The enterprise will hold the (copy) issued by the local tax authority to conduct business activities. After the business activities of the enterprise are completed, the company should go through the cancellation procedures with the tax authorities at the construction site, and submit the out-of-town business certificate to the tax authorities that originally issued it.

4. For construction and installation enterprises that go out for construction, the local tax authorities should take the initiative to strengthen contact with the tax authorities at the construction site and do a good job in identifying the tax payable by out-of-town enterprises. The tax authorities at the construction site should actively cooperate with the local tax authorities to avoid the loss of corporate income tax.

5. The out-of-home business certificates are uniformly printed and numbered by the tax authorities at or above the county (including county) level. The county (city) tax authorities must regularly inspect the out-of-home business certificates filled out by the lower-level tax collection units. , effectively strengthen the use and management of outbound business licenses and ensure that taxes are paid into the treasury in a timely manner.

6. Construction and installation enterprises should set up account books in accordance with relevant national financial and tax regulations, correctly calculate taxable income, and pay income tax at the prescribed rate.

For construction and installation enterprises that fail to set up account books in accordance with regulations or, although they do set up account books, the accounts are confusing, the information is incomplete, and the taxable income cannot be accurately calculated, the tax authorities may determine their taxable income in accordance with relevant regulations.

7. This notice will be implemented from 1995.