If it is a branch in the same region, it can be merged into the head office for accounting. Invoices are generally issued in the name of the head office. However, if it is a branch across provinces, it needs to be accounted for separately, and the invoice must be headed to the branch.

The branch is a secondary legal person in terms of management, that is, it has no independent legal personality. But they must be separated in terms of tax law. Make a distribution statement at the competent tax bureau where the head office is located and submit it to the tax bureau where each branch is located every quarter. The branch office and the head office must handle all accounting separately. All invoices are headed by the branch, and the account settings are consistent with those of the head office.

Note

If the branch is not in the same city and needs to prepay corporate income tax locally, the head office needs to first determine the distribution ratio at its local tax bureau and then submit it to The branch shall register locally and pay taxes according to its distribution table. Accounting entries:

Debit: income tax expenses

Credit: taxes payable - corporate income tax

When paying:

Debit: taxes payable - corporate income tax

Credit: bank deposit