And Article 42 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Incorporating Railway Transportation and Postal Services into the Pilot Project of Changing Business Tax to VAT (Caishui [2065 438+03] 106No.) Notice Annex 1 Implementation Measures for Changing Business Tax to VAT stipulates: "If the head office and branches are not in the same county (city), they shall report to the competent tax authorities in their respective places. With the approval of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China or its authorized financial and tax authorities, the head office may report and pay taxes to the competent tax authorities where the head office is located.
According to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on the relevant policies for the collection and payment of value-added tax by the general branch of fixed business (Cai Shui [2012] No.9), if the general branch of fixed business is not in the same county (city) but in the same province (autonomous region, city), it shall be approved by the finance department (bureau) of the province (autonomous region, city). Judging from the above provisions, the value-added tax realized by branches should, in principle, be declared and paid at the location of branches.
Taxpayers who choose to pay the value-added tax in summary shall obtain the approval of the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China; Taxes paid by branches in the same province (autonomous region or municipality) shall be approved by the finance department (bureau) and the State Taxation Bureau of the province (autonomous region or municipality); If the head office has branches in the same county (city), the head office may apply to the competent tax authorities for consolidated payment of value-added tax. However, the summary payment of VAT does not mean that all branches do not need to prepay VAT on the spot.
According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Re-printing the Interim Measures for the Calculation and Payment of VAT for Pilot Taxpayers in Head Offices (Cai Shui [2013] No.74), if any business listed in the Notes on Taxable Service Scope occurs in a branch, the VAT shall be calculated and paid according to the applicable VAT sales volume and withholding rate.
Special circumstances of summary payment by branches. The Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Taxpayer's Tax Location of Goods Value-added Tax through the Capital Settlement Network (Guo [2002] No.802) stipulates that taxpayers open accounts in various places in the name of the head office, collect sales money from buyers in various places through the capital settlement network, and the head office directly issues invoices to the buyers. If the collection agency fails to issue an invoice to the buyer or collect a loan from the buyer in accordance with the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Collection of Value-added Tax on Goods Transferred between Enterprises, its taxable income shall be subject to value-added tax at the place where its head office is located. According to the above regulations, branches open accounts in the name of the head office, and the sales income obtained by them should be taxed at the location of the head office.
2. Tax place of branch consumption tax. Consumption tax is a central tax. The Detailed Rules for the Implementation of the Provisional Regulations on Consumption Tax in People's Republic of China (PRC) (Order No.5/KLOC-0 of People's Republic of China (PRC) Ministry of Finance and State Taxation Administration of The People's Republic of China) stipulates that taxpayers whose head office and branches are not in the same county (city) shall declare and pay taxes to the competent tax authorities where their respective institutions are located; With the approval of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China or its authorized financial and tax authorities, the head office may report and pay taxes to the competent tax authorities where the head office is located.
The Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Policies Concerning the Collection and Payment of Consumption Tax by General Branches of Consumer Taxpayers (Caishui [2012] No.42) stipulates that the head office and branches of taxpayers are not in the same county (city), but are in the same province (autonomous region or municipality directly under the Central Government) and approved by the finance department (bureau) of the province (autonomous region or municipality directly under the Central Government) and the State Taxation Bureau.
It can be seen that the place of consumption tax payment of the head office is the same as that of value-added tax: in principle, the place of consumption tax payment of the head office should be in the place where their respective institutions are located, and the summary tax payment of the inter-provincial branches should be approved by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China; Taxes paid by branches in the same province (autonomous region or municipality) shall be approved by the finance department (bureau) and the State Taxation Bureau of the province (autonomous region or municipality); If the head office has branches in the same county (city), the head office may apply to the competent tax authorities for consolidated payment of value-added tax.
3. The tax payment place of the branch business tax. The business tax belongs to the central government, and the rest belongs to local governments except those paid by the Ministry of Railways, banks and insurance companies. Article 14 of the Provisional Regulations of the People's Republic of China on Business Tax (Order No.540th of the State Council) stipulates that taxpayers who provide taxable services shall report and pay taxes to the competent tax authorities where their institutions are located or where they live. However, the construction services provided by taxpayers and other taxable services stipulated by the competent departments of finance and taxation in the State Council shall be declared and paid to the competent tax authorities where the taxable services occur.
When transferring intangible assets, taxpayers shall report and pay taxes to the competent tax authorities at the place where their institutions are located or where they live. However, if a taxpayer transfers or leases the land use right, it shall report and pay taxes to the competent tax authorities where the land is located; Taxpayers selling or leasing real estate shall report and pay taxes to the competent tax authorities where the real estate is located. The locations of land, real estate and taxable services are well understood. Does "location of institution" include branches? Units that have the obligation to pay business tax refer to units that have taxable activities and collect money, goods or other economic benefits, but do not include internal institutions where taxpayers do not need to apply for tax registration according to law.
The so-called institutions that do not need to apply for tax registration according to law actually refer to administrative institutions or internal institutions of enterprises, but if the above-mentioned units or institutions have taxable business tax, they should also pay business tax, and the location of their units is also the location of the institutions mentioned in the business tax. Therefore, the location of the institution mentioned in the business tax refers to the location of the institution that should be registered for tax according to law. Article 15 of the Law of People's Republic of China (PRC) on Tax Collection and Management stipulates: "Enterprises, branches established by enterprises in other places and places engaged in production and operation, individual industrial and commercial households and institutions engaged in production and operation shall, within 30 days from the date of obtaining business licenses, report to the tax authorities for tax registration with relevant documents.
Article 12 of the Detailed Rules for the Implementation of the Law on the Administration of Tax Collection in People's Republic of China (PRC) stipulates: "Taxpayers engaged in production and business operations shall, within 30 days from the date of obtaining the business license, apply to the competent tax authorities in the place where their production and business operations or tax obligations occur for tax registration, fill in the tax registration form truthfully, and provide relevant documents and materials according to the requirements of the tax machine." Article 2 of the Measures for the Administration of Tax Registration stipulates: "Enterprises, branches established by enterprises in other places, places engaged in production and business operations, individual industrial and commercial households and institutions engaged in production and business operations shall handle tax registration in accordance with the Tax Administration Law, detailed rules for implementation and these Measures.
Notice of State Taxation Administration of The People's Republic of China on Improving the Administration of Tax Registration (Guo Shui Fa [2006] No.37): "The scope and administration of tax registration. In accordance with the relevant provisions of the Tax Administration Law, its detailed rules for implementation and the measures for the administration of tax registration, except for state organs, individuals (natural persons) and rural mobile vendors without fixed production and business premises, taxpayers shall apply for tax registration. " From the perspective of tax registration management, branches have all the production and operation conditions of taxpayers, so they should apply for tax registration, and of course they are also business tax taxpayers.
The production and operation income of the branch company shall be uniformly settled by the company headquarters and collected at the branch company. That is to say, the branch company has obtained economic benefits through production and operation activities, and generated due business tax income. However, due to the requirements of internal accounting and risk prevention, taxable income is artificially concentrated in the headquarters, but the nature and location of income ownership have not changed. To sum up, the branches of enterprises should be taxpayers of business tax, and the place of tax payment should be the place of tax registration, regardless of the specific accounting place of enterprise income, whether independent or not.
It should be noted that branches should report and pay taxes to the competent tax authorities in the place where taxable services occur, land or real estate is located, but if they fail to report and pay taxes for more than six months from the month when they should report and pay taxes, the competent tax authorities in the place where their head office is located will pay taxes.
Because business tax belongs to local income, the general branch established in the same county (city) has the right to decide whether to collect and pay it. For example, as stipulated in the Announcement of Shenzhen Local Taxation Bureau on Issuing the Implementation Measures for Administrative Examination and Approval (Shenzhen Local Taxation News [2065438+02] No.7), if the following conditions are met, the head office can apply for consolidated payment of business tax: (1) All the head offices are located in Shenzhen; (2) The head office applying for consolidated tax payment has legal person status; (3) The branch applying for consolidated tax payment does not have the legal person qualification; (four) the tax registration information has been registered in the head office and branches; (5) The chain operation mode is adopted, and all branches are directly operated (that is, the chain stores are wholly owned by the headquarters and operated under the leadership of the headquarters); (six) branches do not have financial personnel, the implementation of non-independent accounting; (seven) unified procurement and distribution of products, unified accounting, unified management and operation; (8) All income shall be deposited in the bank account of the head office, and all costs and expenses shall be paid by the head office; (9) Purchase invoices by the head office.
4. The tax payment place of the corporate income tax of the branch. The current enterprise income tax law implements the enterprise income tax system. According to the provisions of the company law, the branch does not have the legal person status, but it needs to go through industrial and commercial registration and tax registration in the local area. Therefore, the branch is not an independent enterprise income tax payer.
According to the Announcement of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Printing and Distributing the Administrative Measures for Collecting and Paying Enterprise Income Tax for Cross-regional Operation (State Taxation Administration of The People's Republic of China Announcement No.57, 20 12), if a resident enterprise establishes a branch without legal person qualification in China, it shall, unless otherwise stipulated, implement "unified calculation, hierarchical management and on-site management". The so-called "advance payment on the spot" means that the head office and branches should report the advance payment of enterprise income tax to the local competent tax authorities on a monthly or quarterly basis.
Announcement No.57 of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China No.2012 also stipulates that if a resident enterprise does not set up a branch without legal person status across China, but only sets up a branch without legal person status in the same province, autonomous region, municipality directly under the central government and cities with separate plans (hereinafter referred to as the same region), the measures for the administration of enterprise income tax collection shall be jointly formulated by the state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the central government and cities with separate plans with reference to these measures; Where a resident enterprise establishes a branch without legal person qualification across regions in China and a branch without legal person qualification within the same region, its enterprise income tax collection and management shall be implemented in accordance with the provisions across provinces.
According to the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Printing and Distributing the Interim Measures for Enterprise Income Tax Distribution and Budget Management of Inter-provincial Head Offices (FB [2012] No.40) and other relevant documents, the following eight branches do not need to pay enterprise income tax in advance:
1. vertically managed branches of central enterprises do not need to pay enterprise income tax in advance. 2. Branches at level 3 and below do not prepay enterprise income tax locally, and their operating income, employees' salaries and total assets are uniformly included in the secondary branches. 3. When the branch does not have a functional department with independent production and operation, the functional department without independent production and operation will not prepay the enterprise income tax on the spot. 4. Secondary and below branches of enterprises that do not have the main production and operation functions and do not pay value-added tax and business tax locally, such as product after-sales service, internal research and development, warehousing, etc. , do not prepay enterprise income tax locally. 5. In the last year, it was recognized as a small and meager profit enterprise, and its branches did not pay enterprise income tax in advance. 6. Newly established branches do not pay enterprise income tax in advance in the year of establishment. 7. For the cancelled branch, the enterprise income tax payable during the remaining period of the current year shall be paid into the central treasury by the head office. 8. A business institution established outside China by an enterprise without legal person status may not prepay enterprise income tax on the spot.
It should be noted that according to the provisions of the Enterprise Income Tax Law, the enterprise income tax is no longer paid separately to branches or branches without legal person status, but paid by the head office in one lump sum, but the branches should pay the enterprise income tax in advance on the spot according to the income tax schedule of the head office. If the head office does not provide the distribution table, the branch shall pay the enterprise income tax in full at the location of the branch according to the profits obtained.
5. Place of payment of paid personal income tax. Article 8 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that "the unit or individual who pays the income shall be the withholding agent". This clause contains the following two key points: first, the premise of personal income tax withholding obligation is to pay personal income, which is to pay employees in layman's terms; Second, the local tax authority where the withholding agent is located is the individual income tax collection and management authority.
When an enterprise allocates funds to a branch, it can only show that the income of employees in the branch is paid in advance by the enterprise, which does not mean payment, and there is no problem of withholding personal income tax. The salary income of the employees of the branch company shall be paid by the branch company. Obviously, the branch is the withholding agent of employees' personal income tax, and the local tax authorities of natural branches become the collection and management organs of employees' personal income tax in this enterprise. Because personal income tax is a local tax, the actual implementation scale varies from place to place. For example, the local taxation bureau of Dongguan City, Guangdong Province requires the personal income tax of the branch to be paid at the place where the branch is located. If you choose to pay in the tax authorities where the head office is located, you need to submit a summary application to the tax authorities where the branches are located.
For units engaged in construction and installation engineering operations in different places, it was originally stipulated that personal income tax should be withheld and remitted at the place where the engineering operations are located. However, if the income is distributed in the place where the unit is located, and complete and accurate accounting books and vouchers can be provided to the competent tax authorities, the individual income tax can be withheld back to the place where the unit is located after approval by the competent tax authorities. The current policy, namely "Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Management of Inter-provincial Individual Income Tax Collection for Construction and Installation Workers" (Announcement No.52 of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), 20 15), stipulates that the individual income tax of all construction enterprises in different places shall be declared and paid by withholding agents to the tax authorities where the project is located.
6. The tax payment place of the stamp duty of the branch. According to the first paragraph of Article 14 of the Detailed Rules for the Implementation of the Provisional Regulations on Stamp Duty in People's Republic of China (PRC), taxpayers should apply for decals when signing contracts, filing documents, opening account books and obtaining licenses. Therefore, stamp duty is generally paid locally. According to the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Place of Paying Stamp Duty on Contracts Signed at Ordering Fair (Guo Fa [199 1]No. 1 187), the stamp duty payable on contracts signed at national commodity and material ordering fairs (including fairs and fairs) shall be returned by taxpayers. Stamp duty on contracts signed at local order fairs and trade fairs that do not involve inter-provincial relations shall be determined by the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government.
Seven, branch resource tax payment place. According to the Provisional Regulations of People's Republic of China (PRC) on Resource Tax (Order No.605 of the State Council), the resource tax payable by taxpayers shall be paid to the competent tax authorities in the place where taxable products are mined or produced. Where a taxpayer needs to adjust the place of tax payment when mining or producing taxable products within the province, autonomous region or municipality directly under the Central Government, it shall be decided by the tax authorities of the province, autonomous region or municipality directly under the Central Government.
The Detailed Rules for the Implementation of the Provisional Regulations on Resource Tax in People's Republic of China (PRC) (Order No.66 of the Ministry of Finance) stipulates that the resource tax withheld and remitted by withholding agents shall be paid to the competent tax authorities in the place of acquisition; Taxpayers who exploit or produce resource tax taxable products across provinces, autonomous regions and municipalities directly under the Central Government, and whose subordinate production units and accounting units are not in the same province, autonomous region or municipality directly under the Central Government, shall pay taxes on the taxable products they exploit or produce at the place of exploitation or production. For taxable products subject to quantitative evaluation, the tax payable shall be calculated and apportioned by independent accounting units according to the sales volume and applicable tax rate of each mining area or production area; For taxable products subject to ad valorem taxation, the tax payable shall be calculated and apportioned by independent accounting units according to the sales volume, unit sales price and applicable tax rate of each mining or production place.