The operation of the headquarters is,

Step 1: The head office calculates the income cost of each branch, and fills in the corresponding column of the Company's Monthly (Quarterly) Advance Tax Return for Enterprise Income Tax in People's Republic of China (PRC) (Class A).

Step 2: According to the requirements of the tax law, the share ratio of each branch should be calculated according to the operating income, employee compensation and total assets of each branch in the previous year.

Step 3: When the head office is in declare in advance, it is necessary to submit not only the main table of prepayment declaration and distribution table, but also the financial statements of the head office and its branches this quarter.

Step 4: After declare in advance, the head office obtains the distribution form stamped with the special seal for acceptance by the competent tax authorities, and copies it to all branches respectively.

The operation of the branch office is,

1. Branches fill in the main form of prepayment declaration form according to the income tax amount distributed by Company A, and make prepayment declaration to their respective competent tax authorities. Note: Branches only need to fill in lines 30, 32 and 33.

2. The branch will submit the copy of the Distribution Form stamped with the special seal for acceptance by the competent tax authorities of Company A together with the main form of the prepayment declaration form of the branch to the competent tax authorities.