Opening a branch in a foreign country depends on whether the branch chooses independent accounting or summary accounting. Independent accounting is how to report according to the local tax policy, which is separate from accounting by the head office.

I. Accounting entries

Debit: bank deposit

Credit: other payables

There is basically no difference between a branch company and the head office. Generally, the money sent by the head office is recorded in the current account between the branch company and the head office. But remember, the branch company has no paid-in capital, so only the undistributed profit has occurred in the equity category.

Second, if the branch does not keep accounts independently, the accountant should keep accounts as usual, but at last, the accounts should be reported to the head office for unified accounting.

Iii. Pay taxes in the local tax authorities of the branch company independently; If it is not independent, it will be consolidated with the head office for tax payment.

4. The branch is a non-independent accounting unit, and the administrative department for industry and commerce at the place of registration only issues the Business License, not the Business License of Enterprise as a Legal Person. There are two accounting methods for the branch: one is the reimbursement system; The second is the separate account system.

1, reimbursement system: the branch has a cashier, but no accountant. The cashier only keeps a running account of cash and bank deposits. The original vouchers such as invoices are sent to the head office for accounting every month.

2. Separate account system. The branch company shall set up accountants and cashiers to conduct accounting for the business activities of the branch company. The accounting statements of the branch company shall be sent to the head office every month, which shall submit them to the relevant departments in a consolidated manner. Under the separate account system, the "internal current account" shall be set for the economic and business transactions between the head office and the branch company.

Head office set up "other receivables-XXX branch" account; The branch company shall set up an account of "Other Payables-Head Office". When the statements are consolidated, the internal current accounts of the head office and the branch company are exactly offset to zero, so that even if there are two or more branches under the head office, the accounting will not be chaotic.

How to pay the corporate income tax of the head office company?

1 Income tax of the head office and branch companies In accordance with the tax laws and regulations, cross-regional operations (referring to provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans) set up business institutions and places without legal person status, and enterprises implement the enterprise income tax collection and management measures of "unified calculation, hierarchical management, local prepayment, summary liquidation and financial transfer".

"Prepayment on the spot" means that the head office and branches shall report the prepayment of enterprise income tax to the local competent tax authorities on a monthly or quarterly basis.

2. It does not operate across regions, does not implement "local prepayment" of enterprise income tax, and does not pay the final settlement at the location of branches (unless otherwise stipulated in the tax law).

3. For tax prepayment, the enterprise income tax prepayments of the head office and branches shall be calculated according to the actual profit of the current period according to the prepayment allocation method stipulated in the Law, and shall be paid locally by the head office and branches on a monthly or quarterly basis respectively.

If it is difficult to pay in advance according to the actual profit within the prescribed time limit, the head office and branches may pay the enterprise income tax in advance according to112 or 1/4 of the taxable income of the previous year with the approval of the local competent tax authorities where the head office is located.

4. 50% of the enterprise income tax paid in advance by the head office and branches shall be shared among the branches and 50% shall be paid in advance by the head office.

How to deal with the accounts of the head office in different places? In addition to understanding the contents of accounting treatment, the finance department also needs to be clear about the tax issues involved in opening a branch in another place and understand the policy requirements of the local tax bureau. If the finance department can't handle these contents well, remember to communicate with the website staff.