That is, business tax and withholding income tax should be declared and paid in accordance with the provisions of China's tax law.
The American McDonald's (KFC) Development Company licenses its trademark management right to an investment enterprise in China, and its annual royalty is 5% of the annual operating income of the foreign-invested enterprise. Suppose that the operating income of the foreign-funded enterprise in 1998 is 500 million yuan, and the franchise fee earned by the American McDonald's (KFC) Development Company in 1998 is 25 million yuan. According to the provisions of China's tax law and Sino-US tax treaty, the franchise fee payable by McDonald's Development Company of the United States in China is1250,000 yuan (calculated at the tax rate of 5%), and the withholding income tax is 2.5 million yuan. When the royalty income is remitted abroad, the foreign exchange payment can only be processed by providing the business tax payment certificate and tax receipt issued by the local taxation bureau where the foreign-invested enterprise is located and the withholding income tax payment certificate and tax receipt issued by the State Taxation Bureau.
Then, as an enterprise with the right to operate a trademark, its tax payment situation in China is similar to that of the general large-scale catering industry, and it pays business tax at 5% of the turnover and income tax at 33% of the net profit. Such as McDonald's and KFC. The proportion of asking for invoices is very small, so it is impossible to pay taxes according to invoices. Tax basis is based on account turnover. Foreign companies such as McDonald's (KFC) Development Company in the United States will supervise and control the operating income of domestic franchised enterprises, otherwise their franchise income will be reduced. . People who don't want invoices after consumption objectively provide an article for tax evasion, so remember to ask for invoices after consumption, but I personally think that everything there is junk food without nutrition, which will only increase cholesterol and fat ... A series of things that are harmful to health and make health in a sub-healthy state ... You can eat as little as possible, but you must ask for invoices after consumption.