It should be noted that if the ultimate holding enterprise of a multinational enterprise group is not a resident enterprise in China, and the multinational enterprise group designates its member enterprises in China as submitting enterprises, it may also file a country report with the China Taxation Bureau.
What is a country report?
Country report refers to the information that multinational enterprise groups should report to the tax authorities in accordance with the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Improving Relevant Reporting and Information Management in the Same Period (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.42, 20 16), mainly including the country distribution of global income, tax payment and business activities of each member entity of the group.
What does the national report include?
The specific content of country report is reflected in three tables in a unified format, namely, country report-country distribution table of income, tax and business activities, country report-list of member entities of multinational enterprise groups and country report-supplementary explanation table, which are required to be filled in Chinese and English respectively, with a total of six tables. Three of the English forms will be exchanged with the overseas jurisdictions concerned.
When should the national report be submitted?
As an integral part of the relevant declaration, the country report should be submitted together with the annual enterprise income tax declaration before May 3 1 every year. If an enterprise needs to extend its declaration, it shall, in accordance with the provisions of the Tax Administration Law and its detailed rules for implementation, submit a written application for extension to the tax authorities within the prescribed time limit.
Relationship between country reports and related declarations
The country report is an integral part of the related declaration, that is, the last six of the 22 tables in the Annual Related Business Transaction Report of China Enterprises (Version 20 16). The information in the national report is different from other related reports, and its reporting form is consistent with the template of the national report in the 13 action plan report issued by the Organization for Economic Cooperation and Development (OECD)20 15.